ACT on Regulation in Network Industries (No. 276)

1. The words „Ministry of Economy of the Slovak Republic“ or the word „Ministry“ in all forms and throughout the text, with the exception of Article 9(19) and Article 21 and Article 39(1) and (5) and in all regulations issued based thereon shall be replaced by the words „Regulatory Office for Network Industries“ or by the word „the Office“ in the corresponding form.

2. Paragraphs (5) through (8) shall be added to Article 3 that shall read as follows: „(5) No licence shall be required for a) generation of electricity or heat from renewable sources in energy installations with an overall installed capacity of up to 5 MWe or 5 MWt, provided that such 1. power generating installation is a small water power plant or wind power plant, 2. power or heat generating installation is a solar facility or a facility utilizing geothermal energy, 3. heat generating installation is a biogas-based facility, b) generation of electricity or heat from other energy installations with an overall installed capacity of up to 0.5 MWe or 0.5 MWt, c) generation of gas from biologically degradable substances. (6) Operators of installations mentioned in the foregoing paragraph (5) shall be liable to notify the Office of the commencement and termination of generation of distribution of electricity or of generation or distribution of heat or of generation or distribution of gas in such a facility, within 15 days of the commencement or termination of generation or distribution at the latest. Operators of such installations shall show in the notification a) for operators being natural persons, 1. first and family name, birth number, permanent residence, 2. object, place and scope of business; if the business concerns power distribution, also defined territory, 3. trade name and identification number of the organisation (IČO) if assigned, 4. type and capacity of the energy facility to be used (or that is being used) to perform activities mentioned in paragraph (5), b) for operators being legal entities, 1. trade name, legal form and registered address of the legal entity, 2. first and family name, birth number and permanent residence of the statutory representative, 3. object, place and scope of business; if the business concerns power distribution, also defined territory, 4. identification number of the organisation (IČO), 5. type and capacity of the energy facility to be used (or that is being used) to perform activities mentioned in paragraph (5). (7) Operators of energy installations for the generation or distribution of electricity or generation or distribution of heat or generation or distribution of gas according to the foregoing paragraph (5) who meet conditions mentioned in Article 4(1.a) and (1.b) or paragraph 2(a) and (b) and who have complied with the obligation to notify according to the foregoing paragraph (6), shall be issued by the Office a certificate of registration of operator and his energy installation that shall represent authorization to do business in the energy sector within the scope shown on the registration certificate. Rights and responsibilities of licence holders according to Articles 9, 11 (3), (5) and (6), and Article 12 (10) and (11) shall apply also to operators of energy installations that have been issued registration certificates. (8) Registration certificates according to the foregoing paragraph (7) shall be issued by the Office to applicants within 30 days of the receipt of the notification.“

3. Subparagraph (c) shall be omitted from Article 4(1). The previous subparagraphs (d) and (e) shall be marked (c) and (d).

4. Subparagraph (a) shall be omitted from Article 4(2). The previous subparagraphs (b) and (c) shall be marked subparagraphs (a) and (b).

5. A new paragraph (8) shall be inserted after paragraph (7) to Article 4, that shall read as follows: „(8) The Office shall grant a licence provided that the applicant meets conditions for the granting of a licence. If a preceding approval for the construction or reconstruction of an energy installation or for a change in the fuel base of the energy installation (Article 10(3)) has been issued to the applicant and if the applicant has complied with the conditions shown in such a preceding approval, the Office shall grant a licence within the extent and under conditions shown in such the preceding approval; meeting of the conditions according to paragraph 1(d) and paragraph 2(b) shall not be required in such cases.“ The former paragraph (8) shall be marked paragraph (9).

6. The words „in the corresponding energy sector“ shall be inserted after the introductory sentence of Article 4(7) after the words „requirements connected with professional experience“, and a full stop shall be inserted after the words „practice“ in subparagraph (d), and the words „in the corresponding energy sector“ shall be omitted.

7. Subparagraph (h) of Article 9(1) shall read as follows: „h) if the offtaker is in delay with the payment of the contract-based downpayment or with the payment of any outstanding amounts based on final bill for energy supplies, and if the offtaker fails to pay such downpayment or outstanding amounts after an additional period of time has elapsed set by the licence holder in a notice (such additional period of time being no shorter than 15 days of the delivery of the notice); general regulation on administrative proceedings shall apply accordingly to the delivery of such notices.8a“. The footnote to reference 8a shall read as follows: „8a Article 24(2) and (3) of Act No. 71/1967 Coll. On Administrative Proceedings (Rules of Administrative Proceedings).“

8. The comma at the end of Article 9(6.a) shall be replaced by semicolon, and the following words shall be added: „general regulations on expropriation shall apply to expropriation of property and limitation of rights to immovables due to the establishment of operation of such distribution facilities.10a“. The footnote to reference 10a shall read as follows: „10a Article 128 of Civil Code, Articles 108 through 116 of Act No. 50/1976 Coll. On Physical Planning and Rules of Construction (Construction Act), as amended from time to time.“

9. The word „remonstrance“ in Article 9(11), second setence, shall be replaced by the word „appeal“, and the words „remonstrance filed“ in the third sentence shall be replaced by the words “appeal filed“.

10. Paragraphs (19) through (21) shall be inserted to Article 9, that shall read as follows: „(19) The least volume of annual electricity and gas consumption for offtakers eligible to make contracts on electricity or gas supplies with any licence holder for the generation or distribution of electricity or gas (hereinafter „Eligible Offtakers") according to paragraph (20) shall be determined by a generally binding legal regulation to be issued by Ministry of Economy of the Slovak Republic (hereinafter „the Ministry“). (20) Licence holders for distribution of electricity or gas shall be liable to transmit, based on a contract and for reimbursement, electricity or gas for Eligible Offtakers meeting technical requirements, via the system of energy facilities of the licence holder, provided that the technical conditions of the system of energy facilities allow it. (21) Details of the rules of electricity transmission and gas transport for Eligible Offtakers shall be laid down by a generally binding legal regulation to be issued by the Ministry“.

11. Paragraphs (2) and (3) of Article 10 shall read as follows: „(2) State regulation in energy sectors shall be exercised by the Office. (3) The Office shall be issueing preceding approval of the construction, reconstruction or cancellation of energy installations or of changes in fuel base of energy installations, in accordance with the energy policy, provided that the energy installation concerned serves a) generation of electricity with an installed capacity exceeding 10 MWe, b) distribution and transmission of medium voltage and high voltage power, c) distribution and transport of gas, with the exception of gas pipeline hook-ups (Article 24(1)), d) generation of heat and domestic hot water with an installed capacity exceeding 5 MWt, e) hot-water-based heat distribution.“

12. Paragraphs (4) through (9) shall be omitted from Article 10.

13. The words „electricity supplies“ in Article 14(10) shall be replaced by the words „connection, supplies and metering of power, as well as classification of offtakers for such purposes“.

14. Paragraph (6) shall be inserted to Article 18, that shall read as follows: „(6) Due to the security of supplies, the Office shall impose upon the purchaser to prefer, in purchasing power, sources firing domestic coal as the primary source, in a ratio that will not exceed 10% of the total volume of primary energy consumed for the generation of power in the Slovak Republic for the calendar year“. Paragraph (5) in Article 19 shall read as follows: „(5) Land owners shall be obligated to enable the operator of external electrical lines access and access by car to such lines, and to enable for such purpose to keep a free stripe of land, so-called forest-free land, 4 m wide on each side of the external electrical line. This distance shall be measured from a line touching the outer side of the electric line and perpendicular to the horizontal plane of the anchoring of the supporting point.“

16. The words „paragraphs (3) through (8)“ in Article 19 (12) shall be replaced by the words „paragraphs (3) through (9)“.

17. The words „establish and“ shall be omitted from Article 23(2).

18. A comma shall be inserted to Article 25(7) after the word „gas“, and the words „as well as classification of offtakers for these purposes“ shall be inserted.

19. Paragraph (1) shall be omitted from Article 40. The previous paragraphs (2) through (6) shall be marked paragraphs (1) through (5).

20. Subparagraph (a) shall be omitted from Article 40(1). The previous subparagraphs (b) through (d) shall be marked (a) through (c).

21. The words „13a“ shall be omitted from Article 40(1.b).

22. Paragraph (3) of Article 40 shall read as follows: „(3) Penalty may be imposed within one year of the date on which State Energy Inspection has obtained knowledge of the violation of responsibilities or within three years of the date when such violation occurred, whichever comes first.“

23. The words „the body that has imposed the penalty“ in Article 40(4) and (5) shall be replaced by the words „State Energy Inspection“.

24. Article 41 shall read as follows: „Article 41 Relationship to rules of administration Unless provided for differently by this Act, the general regulation on administrative proceedings19 shall apply to proceedings under this Act.“

25. Article 41a shall be inserted after Article 41, that – including its heading - shall read as follows: „Article 41a Authorization of the constructor of energy distribution facility In establishing an energy distribution facility on land that is property of other persons, any constructor of an energy distribution facility who is not holder of a licence or holder of a cetificate (Article 3(7)) shall have the same rights and responsibilities as does licence holder, as mentioned in Article 9(6.a), (6.b) and (6.c) and paragraphs (7) through (9).“

26. The heading „Temporary provisions“ shall be inserted above Article 42, with the previous heading of Article 42 being omitted.

27. Article 42a shall be inserted after Article 42, that shall read as follows: „Article 42a Operators of installations mentioned in Article 3(5) that have been commissioned prior to 31 July, 2001 and that are still being operated, regardless of whether a licence or any other authorization has been granted to them to do business in the energy sector under previously applicable regulations, shall be liable to notify, by 30 June, 2002, the Office of generation or distribution of electricity, generation or distribution of heat and generation or distribution of gas in such installations.“ Div.III Act of National Council of the Slovak Republic No. 18/1996 Coll.LL. On Prices, as amended by Act No. 196/2000 Coll.LL., shall be amended and supplemented as follows:

1. Paragraph (4) shall be added to Article 1, that shall read as follows: „(4) The provisions of Article 2(4), Article 3(3), Articles 5 through 12, Articles 17 through 19, Articles 21 and 22 shall not apply to prices of goods the delivery or provision of which is deemed doing business in Network Industries according to a separate piece of legislation.1a“. The footnote to reference 1a shall read as follows: 1a „ Act No. 276/2001 Coll.LL. On Regulation in Network Industries and on Amendments and Additions to Some Acts.“

2. The last sentence of Article 2(3.b) shall be omitted.

3. Paragraph (4) shall be added to Article 2, that shall read as follows: „(4) Ministry of Finances of the Slovak Republic (hereinafter „the Ministry“) may in justified cases establish by generally binding legal regulation the highest measure of reasonable profit.“

4. The words „in cases mentioned in paragraph 3(d)“ shall be omitted from Article 4(1). The footnote to reference 6a shall read as follows: 6a „ E.g., Act No. 195/2000 Coll.LL. On Telecommunications, Act No. 276/2001 Coll.LL.“

5. Subparagraph (d) of Article 4(3) shall read as follows: „d) there are technological, organisatory, and economic links between seller and purchaser, with the exception mentioned in subparagraph (e),“.

6. Subparagraph (e) shall be added to Article 4(3), that shall read as follows: „e) it concerns goods whose delivery or provision is deemed doing business in Network Industries according to a separate piece of legislation.1a“.

7. The introductory sentence of Article 5(3) shall read as follows: „(3) In cases mentioned in Article 4(3.d), regulation of prices of goods, in particular with respect to telecommunication services, water management and Regulated Activities according to separate pieces of legislation,8 includes“.

8. The words „according to Article 3(3)“ shall be omitted from Article 13.

9. The words „apart from natural monopolies“ in Article 16(2) shall be replaced by the words „in cases mentioned in Article 4(3.d) and (3.e)“.

10. Paragraph (4) of Article 20 shall read as follows: „(4) Another state administration authority shall exercise the jurisdiction in the area of prices according to paragraph 2(b) through (h) in cases mentioned in Article 4(3.d) and (3.e).“.

11. The words „(2) through (4)“ in Article 20(5) shall be replaced by the words „(2) and (3)“. Div. IV Act of National Council of the Slovak Republic No. 1/1993 Coll.LL. On Collection of Laws of the Slovak Republic, as amended by Act No. 44/1998 Coll.LL. shall be supplemented as follows:

1. The words „other bodies of state administration if provided so by a separate law“ shall be added to Article 1(1) after the words „central authorities of state administration of the Slovak Republic“.

2. The words „and other state administration bodies“ shall be added to Article 4(1) and (2) after the words „central authorities of state administration of the Slovak Republic“.

3. The words „and other state administration bodies“ shall be inserted to Article 5(1) and (3) after the words „central authorities of state administration of the Slovak Republic.“

4. The word „or“ in Article 5(2), introductory sentence, shall be replaced by a comma, and the words „or of other state administration body“ shall be inserted after the words „of other central authority of state administration“. Div.V Except of Div.I, Article 3(b), Article 5(1.c), Article 12, Article 14, Article 20 and Div.III that shall be effective as of 1 January, 2003, the effective date of this Act shall be 1 August 2001. Rudolf Schuster, s.m. Jozef Migaš, s.m. Mikuláš Dzurinda, s.m.