Challenges in Implementing the Heat Network Organization Criteria: Contractual Relations between Heat Supply Organizations and Heat Network Owners That Lost Their Heat Network Organization Status

This article deals with the challenges of implementing the heat network organization criteria and the fate of contractual relations between heat supply organizations and heat network owners that lost the heat network organization status. The author concludes that the special legislation on heat supply does not provide a procedure for terminating contractual relations between a heat supply organization and an entity that does not meet the heat network organization criteria, even if the parties had a contract for heat energy (heat carrier) transmission services before the criteria came into force. This situation leads to different interpretations of the procedure for applying the criteria and gives rise to disputes between heat supply organizations and heat network owners. The lack of a straightforward and unambiguous mechanism for applying the criteria in price zones has resulted in the necessity for heat supply organizations and heat network owners to defend their rights in court and administratively. Analysis of the general provisions of civil legislation indicates that contracts between heat supply organizations and heat network owners that do not meet the criteria are subject to termination due to impossibility of performance. Additionally, heat supply organizations have the right to verify that heat network owners comply with the heat network organization criteria. The author concludes that developing a mechanism of interaction between the parties is necessary when concluding and implementing contracts for heat energy (heat carrier) transmission services.