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The Serbian Ministry of Energy claims that heating plants do not have to have contracts with citizens

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The Ministry of Mines and Energy estimated these days that heating plants in Serbia do not have to have concluded individual contracts for the supply of thermal energy with district heating users in order to realize and invoice that service, although they were obliged to conclude such contracts by the end of December 2016 under the Energy Act.
According to the available data, the heating plants have so far not concluded such contracts with the largest number of citizens, but have signed them mainly only with district heating users in newly built residential buildings.
In its response to the Citizens’ Right to Right Association, which requested it on a request for free access to information of public importance, the Ministry states that, regardless of whether they have concluded contracts with users, heating plants “have a legal basis on which they deliver and invoice the delivered energy to the housing community”. The response states that “a contract between energy entities and the end user in writing does not constitute a precondition for the existence of a contractual relationship”.
The ministry “acknowledges” that the Energy Act stipulates that the supplier of heat and the final customer are “obliged to conclude a written agreement on the supply of heat”, and that “the content of the contract is prescribed by the local government unit”.
However, it immediately refers to the Law on Obligations and the Law on Utilities, which relativize this obligation.
According to the Law on Obligations, a contract for which a written form is required is considered valid “even though it has not been concluded in that form” if the contracting parties have fulfilled in whole or in most of the obligations arising therefrom.
The Law on Utilities also stipulates that “if the decision of the Municipal Assembly of cities and municipalities does not provide for the conclusion of individual contracts between providers and users of utilities of general interest, the contractual relationship for the provision of utilities is considered to have originated by commencing the use of the utility”.
– Since the Energy Law is a separate law, it is clear that its provisions apply to thermal energy, and that other relevant laws, such as the Law on Obligations and Law on Utilities – concludes the Ministry.
However, in July 2016, the ministry also sent a letter to cities and municipalities warning them that, under the Energy Act, heating plants and final customers are “obliged” to conclude heat supply contracts the contents of which are prescribed by the local government.
The letter also recalls the obligation of cities and municipalities to enact regulations laying down the conditions for the supply of heat, the rights and obligations of producers, distributors, suppliers and end customers of heat, as well as the rights and obligations of end customers of heat, especially in the event of termination contract or termination of heat supply.
– It is necessary to make appropriate decisions in accordance with the Law on Energy as soon as possible. Otherwise, we will be forced to initiate appropriate proceedings before the Government of the Republic of Serbia, demanding the annulment of acts that are not in accordance with the Law on Energy – said the warning, signed by Minister Aleksandar Antic, Kurir reports.

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