Head of practice
Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Thermal energy production license
An official permit for the production of thermal energy is issued on the basis of compliance of the business entity and its activities with the requirements stipulated in the Law of Ukraine “On Heat Supply” and the Licensing Conditions approved by the Resolution of the National Commission for the Regulation of the National Energy and Power Sector of Ukraine № 308, respectively. Such a license entitles the company or institution to the legal right to produce thermal energy (including from alternative energy sources) and to avoid possible sanctions for unlicensed activities. This document is also a necessary condition for entering the market for the supply of such thermal energy.
What activities (do not) require a license?
The applicant’s activity requires a license if it:
- carries out production for the purpose of sale (based on contracts with consumers). If the thermal energy is produced and as a result is fully consumed by the relevant person, then a license is not required;
- uses in its activity cogeneration plants, the total capacity of which exceeds 5 MW (otherwise, such activity will also not be subject to licensing in accordance with the current national legislation).
Who is required to obtain a license for the production of thermal energy?
To obtain the appropriate permit, a person must:
- first, have official registration as an individual entrepreneur or legal entity with KVED 35.1 and register with the tax office at the place of registration, respectively;
- second, have in their ownership or use designated places for the production of thermal energy and other means of conducting such activities (heat generating plants, other equipment);
- third, keep separate records of income and expenses from the production of thermal energy, the features of which are defined in the current accounting standards and individual regulatory legal acts;
- fourth, open accounts with a special use regime in an authorized bank, including for sale at established tariffs;
- fifth, have the technical ability to record the energy produced, energy carriers used and water using appropriate devices;
- sixth, have a minimum number of personnel on staff for proper functioning;
finally, be ready to approve safety passports for critical infrastructure facilities.
How to obtain a license for thermal energy production?
What documents are required for this?
The first step towards proper licensing of activities in the energy sector will be the preparation and submission to the licensing authority of a mandatory list of documents specified in the Licensing Conditions. Below are the main documents:
- application for a license of the established sample;
- information on the means of conducting activities (information on equipment, installations and other technical means) and title documents for them (purchase and sale agreements, rent, leasing, etc.);
- information on the places of conducting activities and copies of documents confirming the right of ownership, use or management (for example, on the basis of a concession agreement);
- technical passports of heat-generating installations confirming their characteristics;
- information on the absence of control and other ties with residents of the aggressor state.
Who issues a license for the production of thermal energy?
In Ukraine, licensing powers are divided between the following main state bodies: the National Commission for State Regulation in the Sphere of Energy and Utilities (hereinafter referred to as the NEURC); Kyiv City State Administration; regional administrations. If an applicant wishes to produce thermal energy at CHPs, TPPs and NPPs, he should contact the NEURC. At the same time, state administrations accept applications for a license in cases where it concerns:
- production of thermal energy using traditional boiler houses and small production capacities;
- production of thermal energy at installations using alternative energy sources (for example, solar energy).
Legal support for obtaining a license for thermal energy production: main advantages
Professional legal assistance in the field of licensing of economic activities is an important stage for successfully obtaining a permit. Lawyers of “Prikhodko & Partners” provide not only consultations on the compliance of the applicant and his activities with licensing requirements, but also prepare documents, make correctly certified copies, promptly submit them to the relevant state body and can conduct further communication (for the purpose of making changes, submitting additional information).
Engaging qualified lawyers can provide significant advantages for the client, including:
- a deep understanding of the legislation and the procedure for obtaining or renewing a license;
- high-quality preparation of a package of documents, their legal examination for compliance with the law;
- minimization of the risks of refusal to issue a license;
- identification and elimination of shortcomings and obstacles in obtaining a permit;
- saving time and resources.
Get a license for heat energy production quickly and without costs together with experienced and qualified lawyers of Prikhodko & Partners. To find out the cost of legal support, fill out the form below.
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