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Kachkin & Partners’ lawyers have won a precedent dispute with the monopolist State Unitary Enterprise «Fuel and Energy Complex». It significantly changes the situation with concluding new buildings’ heat supply contracts for St. Petersburg developers
There has been a vicious practice in St. Petersburg connected with concluding new buildings’ heat supply contracts as a result of which major developers had been losing tens of millions of rubles. Kachkin & Partners’ lawyers have reversed the situation and won a precedent dispute by proving the unlawfulness of actions of the heat supply sphere monopolist — State Unitary Enterprise «Fuel and Energy Complex».
The current law «On heat supply» sets a clear and simple connection procedure: a developer settles a network connection contract, and as a result of its realization it receives the documents on connection’ specifications implementation and immediately the treaty for permanent heating itself.
In practice in St. Petersburg the so-called «temporary admissions of power plants for a period of commissioning» are given after the connection’ specifications implementation, and a commissioning contract is offered to be concluded instead of the heating contract, which requires additional costs for a developer. Prior to the completion of commissioning heat supply organizations believe that there is no connection and continue to bill the developer for heating, even if houses have been put into operation and have long been transferred to management of a specialized management company. In this case rates for the population are not applied, but the «other users» rates are, i. e. the heat supply company obtains an unjustified benefit.
At the same time courts have consistently refused to satisfy management companies’ claims to compel heat supply organizations to conclude a direct contract. This leads to the fact that dozens of multiapartment houses in St. Petersburg have to pay the heat on full rate through an intermediate developer.
Kachkin & Partners’ lawyers have managed to transform the current practice and oblige SUE «Fuel and Energy Complex» to conclude the contract directly with the management company without conducting any additional commissioning.
Within the framework of the present case several important conclusions have been made by courts:
— after receiving the documents on house technological connection to the heating system and permits to house putting into operation a heat supply organization is obliged to conclude a contract for permanent heating with the management company to which power plants are transferred, and it has no right to demand any additional work (commissioning and so on);
— after a house is put into operation, there are no restrictions on power plants transfer to a management company by a developer;
— in case of a heat supply company avoiding to conclude a heating contract on a permanent scheme, a management company may force to its conclusion in court, since the conclusion of such an agreement is obligatory for a heat supply organization.
«The courts of two instances have rejected the arguments of the heat supply organization and explained in detail the illegality of monopolists’ actions. We hope that this precedent will serve as a basis for the changing of the current practice», — Partner, Head of Real Estate and Investments Practice Dmitry Nekrestyanov comments.
PhD in Law
Partner
Head of Real Estate and Investments Practice
Attorney
PhD in Law
Partner
Head of Real Estate and Investments Practice
Attorney