3 (2)
General terms of contract for district heat
Recommendation T1/2017
This recommendation is a translation of the corresponding recommendation in Finnish. In any cases of ambiguity in interpretation, the Finnish-language instructions shall be complied with.
© Finnish Energy 2017
FINNISH ENERGY RECOMMENDATION T1/2017 30.10.2017
This recommendation presents the general terms of contract for district heat.
The recommendation supersedes the corresponding recommendation for 2010.
The following have commented or issued a statement on the contents of the recommendation: The Finnish Competition and Consumer Authority; the Energy Authority; RAKLI, the Finnish Association of Building Owners and Construction Clients; Finnish Real Estate Federation; the Finnish House Owners’ Association; the Finnish Consumers’ Association; the Federation of Finnish Enterprises; the Association of Finnish Local and Regional Municipalities; Finnish Tenants; members of Finnish Energy.
The prevailing practice within district heating companies may deviate from the procedures in accordance with the recommendation even to an essential extent. Therefore, the recommendation is meant as a support and guideline for the member companies when drawing up their own company-specific terms of contract. However, when deviating from the recommendation, it must be ensured that the company’s own terms will also take into account, e.g. the requirements of the Consumer Protection Act, the Competition Act, the Interest Act, the Debt Collection Act, and the Energy Efficiency Act.
A separate working group consisting of members of Finnish Energy has been responsible for the preparation of the contents of the recommendation. The Energy Markets Committee of the Finnish Energy approved these general terms of contract for district heat on 31 August 2017.
The Energy Markets Committee
Petri Paajanen, Vatajankosken Sähkö Oy, Chairman
Jussi Laitinen, Tampereen Sähkölaitos Oy, Vice Chairman
Päivi Alaoja, Energiapolar Oy
Johanna Haverinen, Keravan Energia Oy
Juha Keski-Karhu, Savon Voima Oyj
Reijo Kolehmainen, Lappeenrannan Energia Oy
Marko Riipinen, Helen Ltd
Pertti Sipola, Wiitaseudun Energia Oy
Jukka Toivonen, Fortum Markets Oy
Working group
Riku Martikainen, Jyväskylän Energia Oy
Marko Kivimaa, Helen Ltd
Auli Haapiainen-Liikanen, Etelä-Savon Energia Oy
Pekka Leinonen, Tampereen Sähkölaitos Oy
Timo Vattulainen, Vantaan Energia Oy
Mirja Tiitinen, Finnish Energy
Tuomas Rytkönen, Finnish Energy
Antti Kohopää, Finnish Energy
FINNISH ENERGY RECOMMENDATION T1/2017 30.10.2017
GENERAL TERMS OF CONTRACT FOR DISTRICT HEAT
CONTENTS
I GENERAL TERMS OF CONTRACT FOR DISTRICT HEAT
1 Concluding a heat contract 1
2 Transmission of heat to the customer and the quality of heat 2
3 The contracted water flow / contracted capacity reserved for the customer’s use 2
4 Heat vendor’s pipes and equipment 2
5 Customer’s district heating and space heating equipment 5
6 Heat metering and invoicing 6
7 Securities 8
8 Transfer of the contract 10
9 Interruptions of heat supply attributable to the customer 10
10 Delay in the connection to the district heating network and starting the supply of heat 11
11 Fault in the heat supply, its notification and price reduction 12
12 Compensation of damages 14
13 Expiration of the heat contract 15
14 Changing the terms of contract and pricing 16
15 Settling matters under dispute 17
II DEFINITIONS OF THE CONCEPTS USED IN THE GENERAL TERMS OF CONTRACT FOR DISTRICT HEAT
4
GENERAL TERMS OF CONTRACT FOR DISTRICT HEAT
1 Concluding a heat contract
1.1 The heat vendor and customer conclude a heat contract for connecting the heat consumption site to the district heating network and for supplying heat to the supply point.
1.2 The heat contract shall be drawn up in writing or in another durable medium. The heat contract must be drawn up in writing if requested by either one of the contracting parties. The heat contract is either valid indefinitely or for a fixed term.
1.3 The heat contract consists of the individually agreed and the general terms of contract for district heat, as well as the price lists. If there is a conflict between the contents of the contract documents, the documents shall be applied and interpreted in the following order:
1. Individual terms of contract
2. Price lists
3. General terms of contract (these terms).
1.4 The customer is entitled to receive the invoices, notifications of changes to the terms of contract or pricing, or other messages in electronic format. The customer’s address or invoicing address may be, for example, an e-mail address.
1.5 The customer shall notify the heat vendor of any changes that have taken place in his contact details.
1.6 The customer shall provide the heat vendor with the information that the heat vendor needs in order to implement the connection. The heat vendor shall tell the customer of the requirements that must be met before the customer’s heat consumption site can be connected to the district heating network.
If, in connection with concluding the contract, the customer notifies the heat vendor of a considerable increase in heat requirement that will take place at a later date, the heat vendor shall take this into account when dimensioning the branch pipe.
1.7 If the customer is not the owner of the buildings or site referred to in the heat contract, the customer must acquire the owner’s consent in writing or in another durable medium for connecting the buildings to the district heating network and for any restrictions that the connection may pose to the use of the buildings and site. The consent shall be attached to the copy of the contract that will remain with the heat vendor.
1.8 The customer shall pay the heat vendor the connection fee referred to in the heat contract, as well as other fees in accordance with the price lists valid at any given time.
1.9 The heat vendor and the customer may agree to amend these terms. However, no exceptions to these terms may be included in the contract to the detriment of the consumer.
1.10 The heat vendor and the customer shall agree in the heat contract on the date on which the customer’s site is connected to the district heating network and the supply of heat is started. The connection may be carried out and the supply of heat started when the customer has a valid heat contract and the customer’s district heating and space heating equipment meet the technical requirements set by the heat vendor.
2 Transmission of heat to the customer and the quality of heat
2.1 Heat is transmitted to the customer with the aid of district heating water circulating in a closed pipeline. The district heating water is owned by the heat vendor.
2.2 The temperature of the district heating water supplied to the customer in the supply point under normal operating conditions is a minimum of 65 oC and a maximum of 120 oC. However, the highest supply temperature of the district heating water to the customer is usually 115 oC.
2.3 The minimum pressure difference of the district heating water available to the customer is 60 kPa.
3 The contracted water flow / contracted capacity reserved for the customer’s use
3.1 The amount of contracted water flow / contracted capacity is laid down in the heat contract.
3.2 The heat vendor is entitled to restrict the district heating water flow / capacity received by the customer to the value of the contracted water flow / contracted capacity laid down in the contract.
3.3 A separate contract is always drawn up if changes are made to the contracted water flow / contracted capacity. There must be an adequate reason for changing the contracted water flow / contracted capacity, for example, refurbishment of the building or another measure that has an impact on the capacity need of the building.
When the contracted water flow / contracted capacity is increased, the customer shall pay an extra connection fee. However, when the contracted water flow / contracted capacity is reduced, no connection fees paid will be returned. If the reduced contracted water flow / contracted capacity is increased at a later date, the extra connection fee is charged only in as far as the contracted water flow / contracted capacity exceeds the value for which the connection fee has already been paid. The heat vendor is entitled to charge the customer for the costs accrued from changing the contracted water flow / contracted capacity or for any fees in accordance with the price list.
3.4 The customer must notify the heat vendor without delay of any significant changes having an impact on the use of district heat in the customer's property or space heating equipment.
4 Heat vendor’s pipes and equipment
4.1 The heat vendor will install a metering installation at the customer’s premises in a place agreed with the customer and build the branch pipe along an agreed route all the way to the metering installation. The division of tasks and the method of implementation between the customer and the heat vendor shall be agreed on in writing or in another durable medium in connection with the heat contract, if necessary.
4.2 The heat vendor is entitled to carry out installation and repair work on its own pipes and equipment at the customer’s premises. The heat vendor is also entitled to carry out tasks at the premises complying with the hot work permit on the vendor's own district heating equipment and, in urgent cases, on the customer's district heating equipment located in the distribution room. Hot work shall be carried out in accordance with the heat vendor’s hot work plan. The heat vendor shall notify the customer of any installation and repair work and hot work in advance. This does not apply to urgent repair and installation tasks, which will be notified as soon as possible.
4.3 The customer shall provide in a building and on a site owned or occupied by the customer, without a separate compensation, a facility necessary for positioning, inspecting and maintaining the equipment required by the branch pipe, the metering installation and any other equipment required for monitoring heat consumption, for the use of the heat vendor.
4.4 The customer shall make sure that the facility where the metering installation is located has a branch circuit for connecting the heat meter and other equipment necessary for monitoring the heat consumption, as well as any differential pressure gauge, to the 230-V electricity network. The customer shall provide the electricity required by these devices for the use of the heat vendor free of charge.
4.5 If the contracting parties so agree, the heat vendor is entitled to build and maintain district heating pipelines and necessary communication cables in the customer’s buildings and in the site area also for other customers at the vendor’s own expense. The heat vendor shall locate the above-mentioned pipelines, cables and related equipment so that they do not cause unreasonable damage or hindrance to the customer. If these pipelines, cables or equipment must be located on a built-up site, the heat vendor shall restore the areas damaged as a result of excavation or other work to the condition they were before the construction work started, unless otherwise agreed.
4.6 The heat distribution room and any separate metering installation room must be kept locked. The rooms must have a floor drain or other drainage facility approved by the heat vendor, as well as adequate lighting and ventilation. These facilities must not be used as a storage area or for any other inappropriate purposes. The customer shall ensure at his own expense that the facilities are safe to work in.
4.7 If the customer makes any changes to the building or site owned or occupied by him, the heat vendor shall make the necessary changes to its pipes and equipment as a result. In this section, changes do not refer to the termination of the heat contract and the resulting changes.
The heat vendor shall remove its pipelines, cables and equipment from buildings to be demolished, but is entitled to install pipelines, cables and equipment built for other customers in the new buildings to be built in place of the demolished buildings or at another place in the building or on the site in question, approved by both contracting parties.
If the cables to be moved or changed only serve the customer who is requesting the move or change, the expenses arising from the move or change shall be met by the customer. The heat vendor shall move or change the cables and pipelines installed only for other customers at its own expense. If the pipelines, cables or equipment to be moved or changed are also serving the customer wanting to carry out a move or change, the expenses arising from the move or change shall be divided between the customer requesting the move or change and the heat vendor in relation to the contracted water flows / capacities.
4.8 The customer must notify the heat vendor in writing or in another durable medium of any changes that oblige the heat vendor to move or remove its pipelines, cables or equipment either temporarily or permanently no later than three months before the start of the changes, and the customer must reserve a facility for building the necessary temporary pipeline. The customer must notify the heat vendor in advance in writing or in another durable medium of any changes to the purpose of use of the facilities or structures or of parcelling out of the site located along the heat vendor’s line route.