Collective heat supply law: expansion of an existing heat plot

Expanding heat lot size

There may be growth in the number of connections but they are located (just) outside an established heat plot. In other words, the heat plot must be enlarged. The bill takes into account the possibility that even after a designation under transitional law a heat parcel is enlarged (p. 99 explanatory memorandum). There is then an amendment to the designation. Such an amendment - with a view to the principle of municipal direction - can only take place ex officio. An amendment upon application is therefore out of the question.

It follows from the explanatory notes to the Collective Heat Supply Act ("Wcw") that in principle no limit is placed on the size of the ex officio extension of the designation and the heat parcel, as long as the criteria for the extension mentioned in Article 2.8 paragraph 1 Wcw are met and the heat parcel after the amendment meets the criteria in Article 2.1 paragraph 1 Wcw. Article 2.8 incidentally also includes criteria for the reduction and merger of a heat plot (see paragraphs 5 and 6).

It follows from article 2.1, paragraph 1 jo. 6, that the Municipal Executive has the authority to amend a heat plot and that a heat plot must (continue to) meet the criteria set out in article 2.1, paragraph 1, of the Wcw after an enlargement. In that context, the Municipal Executive may only determine a heat parcel (enlarged) if the size is such that 1) a heat company can construct and operate the collective heat supply within it in an efficient manner 2) the security of supply within the heat parcel can be sufficiently assured.  

In addition, the organizational - and technical competence as well as the financial state of the heat company is important for enlargement. This is because the ACM must establish by decision that the heat company has the organizational and technical competence necessary to perform the tasks for a designated heat company and that the designated heat company is sufficiently financially capable of performing the tasks also for the enlarged heat plot.

Legal Protection

The amendment of a designation and the amendment of a determination of a heat parcel can be objected to and appealed against on the basis of Article 11.5 Wcw. The thrust of section 11.5 Wcw is to combine legal protection for these two acts, in the sense that the separate decisions are considered one decision.

Closing

This blog is part of a series of blogs on the bill for the Collective Heat Supply Act. More blogs on the various topics will follow in the coming period. You can read the other blogs already published here.

Do you have questions about the Collective Heat Supply Act bill and how it will affect your business? The specialists at Straatman Koster Lawyers are ready to assist you.