Section XI
Suspension of Connection and Electricity Supply

Article 122. (1) The transmission company or the distribution companies shall have the right to suspend the electricity transmission through the relevant network by written advance notice in the event of planned repair, redevelopment or inspection of facilities of the electric energy company requiring the switching off of the said facilities for safety purposes.
(2) The transmission company or the distribution companies shall have the right to suspend electricity transmission through the relevant network without advance notice:
1. for prevention of an imminent risk to human health and security or to the security of facilities;
2. upon failures of the electricity networks and facilities for reasons beyond the control of the electric energy company;
3. where electricity is consumed unmetered or is incorrectly metered by means of commercial metering devices;
4. where an uncleared modification of the connection diagram of the consumer is detected.
(3) The transmission company or the distribution companies shall have the right to suspend the connection:
1. of persons who have connected to the relevant network without having a right to do so;
2. of consumers who have suffered the connection of a third party to their own electric fixtures without the express consent of the energy company;
3. upon failure to perform a prescription issued by a control authority for remedy of a violation within the prescribed time limit;
4. of consumers who cause disturbances to the electric power grid through their own network.
(4) Upon suspension of the transmission and connection under Paragraphs (2) and (2), the public provider or the public suppliers shall not incur any liability for damages resulting from limitation or suspension of the supply.
Article 123. (1) The public provider and public suppliers shall have the right to suspend the supply of electricity to consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.
(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.
(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the public provider or of the public supplier, as the case may be.
(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.
Article 123a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall be entitled to temporarily suspend the electricity supply to any consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.
(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.
(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the end supplier.
(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.
Article 124. The energy shall restore the supply and/or connection of consumers upon elimination of the reasons that led to the suspension of the said supply and/or connection.

Chapter Ten
HEAT SUPPLY
Section I
General Provisions

Article 125. (1) Heat supply is the process of generation, transmission, delivery, distribution and consumption of heat with water steam and hot water as a heat-transfer medium for household and business uses.
(2) Heat supply shall be implemented by means of facilities and installations for generation, transmission, delivery and distribution connected in a heat supply system.
(3) The procedure and the technical conditions for heat supply, for operational management of the heat supply system, for connection of producers and consumers to the heat transmission network, for distribution, disconnection of heat supply and suspension of heat supply shall be established by an ordinance of the Minister of Energy and Energy Recourses.
(4) The technical rules and standard specifications for design, construction and operation of the facilities and installations for generation, transmission and distribution of heat shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.

Section II
Heat Generation

Article 126. (1) Heat shall be generated by an energy company licensed for generation according to the procedure established by this Act.
(2) (Amended, SG No. 55/2007) Persons may generate heat even without holding a licence in the cases under Item 2 and 4 of Article 39 (4) herein.
Article 127. (1) Heat shall be generated at:
1. combined heat and power plants;
2. heat generation plants;
3. installations for recovery of waste heat and for utilization of renewable energy sources.
(2) In case of a declared demand for heat, new plants with a capacity exceeding 5 megawatts and using natural gas as fuel shall be constructed for the combined generation of heat and electricity (co-generation).
Article 128. Producers of heat at heat power plants and/or heat generation plants shall be obligated to maintain stocks of fuels in a quantity guaranteeing reliable generation, determined under the terms and according to the procedure established by the ordinance referred to in Article 85 (2) herein.

Section III
Heat Transmission

Article 129. (1) (Amended, SG No. 74/2006) The heat transmission network shall be operated by a heat transmission company.
(2) (Amended, SG No. 74/2006) The heat transmission company may, in addition, perform an activity comprehended in the generation of heat and electricity.
Article 130. The heat transmission company shall be obligated:
1. to supply heat to consumers connected to the heat transmission network on equal and non-discriminatory terms;
2. to maintain the facilities and installations of the heat transmission network in accordance with technical requirements and safe operation requirements;
3. to develop the heat transmission network in accordance with the plans for development of the areas for which the said company has been issued a licence;
4. to purchase the contracted quantities of heat from producers located within the area for which the said company is licensed.

Section IV
Operational Management

Article 131. (1) The operational management of the heat transmission system shall be performed by a heat transmission network operator.
(2) A heat transmission network operator shall be a specialized unit of the heat transmission company.
(3) The directives of the operator shall be mandatory for the heat producers and consumers.
Article 132. (1) The heat transmission network operator shall be obligated to ensure:
1. a mode of operation of the heat transmission network in accordance with the requirements established by the ordinance referred to in Article 125 (3) herein;
2. maintenance of the balance between generation and consumption;
3. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) coordination with the electric power grid operator and/or the electricity distribution network operator in accordance with the contracts as concluded: in cases of combined generation of heat and electricity (co-generation);
4. coordination with the natural gas transmission network operator and/or the natural gas distribution network operator in accordance with the contracts as concluded: where natural gas is used.
(2) (Amended, SG No. 74/2006) The heat transmission network operator shall regulate the distribution of the heat load among the heat generation plants under criteria determined by the ordinance referred to in Article 125 (3) herein.

Section V
Connection to the Heat Transmission Network

Article 133. (1) The heat transmission company shall be obligated to connect to the heat transmission network producers and consumers located within the relevant area specified by the licence for transmission of heat.
(2) (Supplemented, SG No. 74/2006) The connection of consumers in a condominium-project building through a subscriber sub-station or self-contained branches there from shall require a resolution of the general meeting of the condominium owners, taken with an express written consent by two thirds of all owners and titleholders of real right to use in a condominium-project building.
(3) The heat transmission company may refuse to connect a producer to the heat transmission network if the said producer has failed to comply with the requirements under this Act and under the ordinance referred to in Article 125 (3) herein.
(4) The heat transmission company may refuse to connect consumers to the heat transmission network:
1. where no heat transmission network has been constructed;
2. upon shortage of generating capacities;
3. upon insufficient transmission capacity of the heat transmission network;
4. (amended, SG No. 74/2006) where the systems of consumers in a condominium-project buildings are not equipped with the devices and appliances covered under Items 2 and 3 of Article 140 (1) herein.
(5) The heat transmission company shall provide a reasoning in writing for a refusal to connect any producer or consumer.
Article 134. Producers shall be connected to the heat transmission network by means of connecting heating mains which shall be constructed by and for the account of the producer and shall be owned thereby.
Article 135. Consumers shall be connected to the heat transmission network by means of a connecting heating main and a subscriber sub-station.
Article 136. (1) Upon connection of a consumer of heat for business uses, the connecting heating mains and the appurtenant facilities and the subscriber sub-station shall be constructed by and for the account of the consumer and shall be owned thereby.
(2) Connection of a new consumer of heat for business uses by means of an existing connecting heating main owned by another consumer for business uses may be performed if technically practicable, provided the heat transmission company buys out the common use section of the connecting heating main or the owner creates an onerous right of use to the said section in favour of the said company.
Article 137. (1) Upon connection of consumers of heat for household uses, the connecting heating main, the appurtenant facilities and the subscriber sub-station shall be constructed by the heat transmission company and shall be owned thereby.
(2) (Amended, SG No. 74/2006) Construction of the facilities referred to in Paragraph (1)may be performed by the consumers after clearance with the heat transmission company. In this case, the heat transmission company shall pay a price to use the consumer-constructed facilities under Paragraph 1.
(3) (New, SG No. 74/2006) Ownership of consumer-constructed facilities shall be transferred within three years, and any related relationships thereto shall be settled by the connection contract referred to in Article 138, Paragraph 1.
(4) (Renumbered from Paragraph 3, SG No. 74/2006) Connection of consumers from one or more buildings to a subscriber sub-station in another building shall only be permissible where:
1. the owners of the corporeal immovables in the buildings without a subscriber sub-station have concluded a contract for use of the premise of the existing subscriber sub-station, and
2. the said owners have complied with the technical requirements established by the ordinance referred to in Article 125 (3) herein.
(5) (Renumbered from Paragraph 4, amended, SG No. 74/2006) The connecting heating main from the existing subscriber sub- station to the building of the consumers referred to in Paragraph (4) shall be constructed by and for the account of the connecting consumers and shall be owned thereby.
Article 138. (1) Producers and consumers shall be connected to the heat transmission network shall on the basis of a written contract with the heat transmission company under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.
(2) Producers and consumers referred to in Paragraph (1) shall pay the heat transmission company a connection price which shall be formed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein.
(3) Consumers connected to the heat transmission network shall be obligated to provide the licensed heat transmission company access through their own facilities for the purposes of heat transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.

Section VI
Heat Distribution
Article 139. (1) Head shall be distributed in a condominium project building on the basis of a share distribution system.
(2) (Amended, SG No. 74/2006) Heat share distribution in a condominium-project building among the consumers shall be done by the heat transmission company or by a heat provider, or shall be assigned to a person, listed in the public register under Article 139a.
Article 139a. (New, SG No. 74/2006) (1) Persons performing the share distribution service shall be registered in a public register with the Ministry of Economy and Energy.
(2) A person meeting the following requirements shall be listed in the public register under Paragraph 1:
1. is presenting a commercial registration document and a current status certificate;
2. is a producer of individual heat distribution devices or is a duly authorised representative of such producer, which shall be certified by a statement from the producer person, and for the producer representatives - by a notarised letter of attorney or other document, with which the producer authorises the person to conduct such activities;
3. is offering and/or using individual heat distribution and/or metering devices, meeting the effective standards in the country;
4. is providing warranty and post-warranty service for the share distribution devices offered and installed;
5. owns the hardware and licensed software needed to conduct its activities;
6. has qualified personnel and an authorised representative at the respective city or village;
7. applies a heat share distribution methodology, compliant with the rules on distribution according to the ordinance under Article 126, Paragraph 3;
8. is not in any liquidation proceedings;
9. is not declared bankrupt, and is not in any bankruptcy proceedings;
10. presents a certificate for being a personal data administrator under the Personal Data Protection Act;
11. does not have its right to conduct commercial activities revoked;
12. has no monetary obligations to the state, established by an act of a competent authority, or obligations to social insurance funds, except in cases where the competent authority has allowed the obligation to be rescheduled or deferred.
(3) In order to obtain registration, the person shall submit an application to the Minister of Economy and Energy, attaching thereto any documents certifying the conditions under Paragraph 2. When the share distribution is to be done by a foreign natural or legal person, the application shall be submitted in Bulgarian language, and any foreign-language documents attached thereto shall be also presented in translation.
(4) For all conditions under Paragraph 2, Items 4-6, the person shall attach a statement to the application, stating the number of employees used, and their qualifications.
(5) The conditions under Paragraph 2, Item 3 and Items 8-12 shall be certified by documents from the respective competent administrative or judicial authorities.
(6) The application shall be reviewed by a Committee, appointed by order of the Minister of Economy and Energy, which, within one month after the date the application is submitted, shall prepare a motivated proposal for the Minister.
(7) The Committee under Paragraph 6 shall be entitled, over the course of review of this application, to verify the data stated by the person, to ask for clarifications regarding the conditions and the documents under Paragraph 2, as well as to require written presentation within a given period of additional proof of any conditions stated in the application.
(8) The Minister of Economy and Energy shall make a decision on the application based on the Committee's proposal within 7 days after preparation of the latter. The applicant shall be notified under the procedure of the Code of Civil Procedure.
(9) The authority under Paragraph 8 shall make a decision with a motivated refusal on the application, when the person does not meet any requirements in Paragraph 2, and/or has not provided any documents under Paragraph 4 or Paragraph 5. The refusal may be appealed under the procedure of the Code of Administrative Procedure.
(10) The entry into the register shall be effected within three days after the decision of the authority under Paragraph 8, on which the applicant shall have a certificate issued. The registration shall be considered effective as of the date of presenting the certificate.
(11) Any person, listed in the register under Paragraph 1, shall be de-listed by an act of the authority under Paragraph 8:
1. upon application for de-listing, submitted by the person;
2. upon termination of activity or death of the natural person - sole trader, or upon placement of the latter under full judicial disability, as well as upon termination - for a legal person;
3. when, as a result of any change in conditions, does not meet the requirements under Paragraph 2;
4. when by two or more effective acts by competent state authorities it has been established that the company has been in regular violations of the law.
(12) Persons, listed in the register under Paragraph 1, shall inform the Minister of Economy and Energy on all changes in conditions under Paragraph 2 within 7 days after such changes have occurred;
(13) For the application review and the register listing, a fee shall be paid, set forth in a schedule by the Council of Ministers, upon proposal by the Minister of Economy and Energy.
(14) The rules to maintain and store all data in the register shall be defined in an instruction by the Minister of Economy and Energy.
Article 139b. (New, SG No. 74/2006) (1) Consumers in a condominium-project building shall designate a person, registered under the procedure of Article 139a, to perform the share distribution service.
(2) The designation under Paragraph 1 shall be based on decision by heat consumers in the condominium-project building, taken on a general meeting of the condominium-project, held under the procedure of the Condominium Management, Order and Supervision Rules (prom., Not., No. 101/1951; amended No. 16/1952, No. 14 and 32/1957, SG, No. 76/1978, No. 73/1979, No. 21/1991, No. 87/2002).
(3) Consumers shall notify in writing the heat transmission company or the heat supplier on the result of this designation decision.
Article 139c. (New, SG No. 74/2006) (1) When the heat transmission company or the heat supplier have not been registered under Article 139a, they shall execute a written agreement on the performance of the share distribution service with the person designated by consumers under Article 139b.
(2) The agreement under Paragraph 1 shall be executed on general conditions proposed by the heat transmission company or the heat supplier and approved by the Commission.
(3) The agreement under Paragraph 1 shall contain:
1. rights and obligations of the parties;
2. the methodology for heat share distribution;
3. the terms, procedure, timeframes and content of any required information the parties provide each other in order to perform the share distribution;
4. price for the share distribution service, paid by the heat transmission company or the supplier, which compensates any service costs proven before the heat transmission company or the heat supplier and an economically justified rate of return on investment;
5. the obligation of the person designated by consumers under Article 139b to read the share distribution meters and to prepare amount equalization for the actual consumed heat quantity in the event of agreement termination;
6. all liabilities and charges upon any violation of the agreement, as well as the control the heat transmission company or the heat supplier has over the correct performance of the share distribution service;
7. the agreement termination terms;
8. the terms, procedure, timeframes, access, and conditions to provide all information needed to prepare the bills for consumers in the condominium-project building by the share distribution performing person, to the heat transmission company or the heat supplier.
(4) Upon termination of the agreement under Paragraph 1, consumers in the condominium-project building, or the association under Article 151, Paragraph 1, shall designate another person registered under Article 139a, with whom the heat transmission company or the heat supplier shall execute an agreement.
Article 140. (1) The share distribution of heat among consumers in a condominium-project building shall be performed by means of:
1. commercial metering devices for the quantity of heat in the subscriber sub-station;
2. (amended, SG No. 74/2006) heating share distribution devices: individual allocators conforming to the current standards in Bulgaria, or individual heat meters;
3. (amended, SG No. 74/2006) household hot-water supply share distribution devices: individual hot water meters installed on all branches from the building hot-water supply system to the properties of the consumers;
4. (repealed, SG No. 74/2006) .
(2) Consumers connected to the subscriber sub-station in a condominium-project building shall use heating share distribution devices of one and the same model, delivered by one and the same merchant or approved by the said merchant for use in the building.
(3) (Amended, SG No. 74/2006) Building heating and household hot-water supply installations shall be condominium-project property.
(4) (Amended, SG No. 74/2006) The heating units, the appurtenant control fittings, the branches from the heating building systems, the branches from the hot-water supply systems and the share distribution devices referred to in Paragraph 1, Item 2, and the individual water meters referred to in Paragraph 1, Item 3 shall be owned by the consumers.
(5) (Repealed, SG No. 74/2006).
(6) (Repealed, SG No. 74/2006).
Article 140a. (New, SG No. 74/2006) The total consumed quantity of heat in a condominium-project building, connected to a subscriber sub-station or a separate branch thereto, shall be allocated for hot-water supply and heating.
Article 141. (1) The heat for hot-water supply in a condominium project building shall be calculated by means of:
1. the quantity of household hot water supplied and consumed in the building according to the readings of the common water meter;
2. the consumption of heat for heating of 1 cubic metre of water of the quantity referred to in Item 1, determined under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.
(2) The heat referred to in Paragraph (1) shall be distributed among consumers under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.
Article 142. (1) (Amended, SG No. 74/2006) The heat for heating of a condominium-project building shall be the difference between the total quantity of heat for allocation in a condominium-project building and the quantity of heat for hot water supply, calculated under Article 141 (1) herein.
(2) The heat for heating of a condominium-project building shall be divided into heat released by the building system, heat for heating of common parts, and heat for heating of the properties.
Article 143. (1) (Amended, SG No. 74/2006) The heat released by the building system, upon application of share distribution system through individual allocators, shall be calculated by the person performing heat share distribution in the building using methodology in the ordinance under Article 125, Paragraph 3.
(2) The heat for heating of the common parts with installed heating units in condominium-project buildings, upon application of share distribution through individual allocators, shall be calculated on the basis of:
1. the capacity of the heating units, or
2. the readings of the individual allocators installed on the said heating units.
(3) The heat referred to in Paragraphs (1) and (2) shall be distributed among all consumers in proportion to the design heated volume of the individual properties.
Article 144. (1) The heat for heating of the properties shall be distributed among the individual properties on the basis of share units according to the readings of the individual allocators installed on the heating units in each property.
(2) The value of one share unit shall be calculated on the basis of readings of the individual allocator, taking into consideration evaluation factors in accordance with the standard of the said allocator.
(3) The heat per share unit shall be calculated by dividing the heat for heating of the building, less the quantity of heat calculated under Paragraph (1) and Item 1 of Paragraph (2) of Article 143 herein, by the sum total of the share units for all heating units in the building.
(4) The heat released by one heating unit shall be the product of the share units as determined according to the readings of the individual allocator installed on the radiator, and the heat per share unit.
(5) (New, SG No. 74/2006) The heat under Paragraph 4 shall not exceed the maximum heat the heating unit is able to emit within a heating period, calculated using methodology in the ordinance under Article 125, Paragraph 3, at the respective building installation operating mode.
(6) (New, SG No. 74/2006) If there are no heating share distribution devices in a particular property and/or on particular premises, the heat for the heating thereof shall be calculated by multiplying the installed capacity of the heating units installed therein by the maximum specific consumption for the building, arrived at according to the procedure established by the ordinance referred to in Article 125 (3) herein.
Article 145. (1) The heat for heating of the properties in a condominium-project building, upon application of share distribution through individual heat meters, shall be calculated on the basis of the readings of the heat meters in the individual properties.
(2) The heat released by the building system and the heat for the heating of the common parts, upon application of share distribution through individual heat meters, shall be calculated as the difference between the heat for heating of the building, arrived at under Article 142 (1) herein, and the heat for heating of the properties, calculated under Paragraph (1).
(3) The heat referred to in Paragraph (2) shall be distributed among all consumers in proportion to the heated volume of the individual properties.
Article 146. (Repealed, SG No. 74/2006).
Article 147. (Repealed, SG No. 74/2006).
Article 148. (Repealed, SG No. 74/2006).

Section VII
Commercial Relationships
Article 149. (1) Heat shall be sold on the basis of written contracts under general conditions, concluded by and between:
1. a producer and a heat transmission company;
2. a producer and directly connected consumers of heat for business uses;
3. a heat transmission company and consumers of heat for business uses;
4. a heat transmission company and associations of heat consumers in a condominium-project building.
5. (new, SG No. 74/2006) a heat transmission company and a heat supplier;
6. (new, SG No. 74/2006) a heat supplier and consumers in condominium-project building.
(2) (Amended and supplemented, SG No. 74/2006) The general conditions of any contracts referred to in under Items 1, 3 and 4 of Paragraph (1) shall be proposed by the heat transmission company, and the general conditions of any contracts referred to in Item 2 of Paragraph (1) shall be submitted by the producer to the Commission for approval.
Article 149a. (New, SG No. 74/2006) (1) Heat consumers in a condominium-project building may purchase heat from a supplier, selected on a general meeting of the condominium owners. This selection shall be reflected in a protocol under the Condominium Management, Order, and Supervision Rules.
(2) Heat suppliers shall be legal persons, registered as companies under Bulgarian law, meeting all financial-guarantee requirements for all transactions they execute with the heat transmission company.
(3) The financial guarantees under Paragraph 2 shall be presented by the supplier to the benefit of the heat transmission company under the terms and procedure set forth in the ordinance under Article 125, Paragraph 3.
Article 149b. (New, SG No. 74/2006) (1) Upon any sale of heat by supplier to consumers in a condominium-project building, the written agreement shall define:
1. the rights and obligations of the parties;
2. the price of heat;
3. the procedure to measure, read, distributes and pay for the heat;
4. the procedure to provide access to the heating units and the share distribution devices;
5. the requirements to the quality of the service;
6. the responsibility upon any failure to meet obligations;
7. the procedure to review all consumer complaints and claims;
8. the terms and procedure for agreement termination.
(2) Integral part of the agreement under Paragraph 1 shall be:
1. a copy of the agreement with the heat transmission company;
2. the consumed heat share distribution methodology;
3. a protocol from the general meeting of the condominium owners;
(3) In the agreement under Paragraph 1, the share distribution service shall be performed by and at the expense of the supplier separately, or under an agreement the supplier has executed with a person registered under Article 139a.
Article 150. (1) Heat shall be sold by the heat transmission company to consumers of heat for household uses under publicly known general conditions as proposed by the heat transmission company and as approved by the Commission; the said conditions shall stipulate:
1. the rights and obligations of the heat transmission company and the consumers;
2. the procedure for metering, reading, distribution and payment of the quantity of heat;
3. the liability for non-fulfilment of the obligations;
4. the terms and procedure for connection, suspension and disconnection of heat supply;
5. the procedure for provision of access to the heating units, the commercial metering devices or other control appurtenances.
6. (new, SG No. 74/2006) the procedure and the timeframes for the consumers to provide and receive their individual heat distribution bills in a manner setting forth the time, when the appeal period commences.
(2) Heat transmission companies shall mandatorily publish the general conditions as approved by the Commission in at least one national and one local daily newspaper in the cities where heat supply for household uses is available. Such general conditions shall take effect 30 days after the first publication thereof, without the need of an express written acceptance by consumers.
(3) Within 30 days after the effective date of the general conditions, the consumers who disagree with the said conditions shall have the right to submit a statement to the relevant heat transmission company, proposing thereby special conditions. Any special conditions departing from the general conditions as published, which are accepted by the heat transmission companies, shall be entered in supplemental written agreements.
Article 151. (1) Heat consumers in a condominium-project building may establish an association wherewith the heat transmission company may conclude a contract for sale of heat to be used by the consumers in the said building.
(2) Any contract referred to in Paragraph (1) shall stipulate:
1. the rights and obligations of the parties to the contract;
2. the procedure for metering, reading and payment of the quantity of heat according to the readings of the heat meter in the subscriber sub- station;
3. warranties ensuring fulfilment of the obligations of the parties to the contract;
4. the liability for non-fulfilment of the obligations;
5. the procedure for consideration of consumer claims;
6. the terms and procedure for termination of the contract.
(3) Any contract referred to in Paragraph (1) shall be concluded at a preferential price of heat for the association, fixed by the Commission at a proposal by the heat transmission companies.
(4) The contract for sale of heat at a preferential price shall be terminated upon dissolution of the association referred to in Paragraph (1) or upon cessation of a consumer's membership in the said association. As of the time of termination of the contract, the owners or users of the properties in a condominium-project building shall be considered to be the heat consumers.
Article 152. (1) The association referred to in Article 151 (1) herein shall be a voluntary association of all heat consumers in a condominium- project building. The registration of any such association shall be effected according to the procedure established by Chapter One of the Not-for-Profit Legal Entities Act. The court shall record in the register the particulars referred to in Items 1 to 3, 5, 6, 8 and 9 of Article 18 (1) of the Not-for- Profit Legal Entities Act.
(2) The association referred to in Article 151 (1) herein shall be incorporated for enhancement and improvement of the living conditions and environment in a condominium-project buildings and may:
1. purchase heat from the heat transmission company which is to be used in the condominium-project building;
2. take the readings of the metering devices and the heat distribution devices;
3. create new or update existing documentation with data on the heated facilities and on the consumption of hot water;
4. exercise control over the heating units and water meters, including such where to heat delivery and hot-water delivery has been discontinued;
5. perform repair and adjustment of the building systems, whether independently or through other persons, including rehabilitation of the condominium-project building;
6. take care of the building systems and of the condominium project building;
7. perform other activities related to the servicing of the properties in the condominium-project building;
8. carry out economic activity.
(3) The association referred to in Article 151 (1) herein shall be a legal person and shall not distribute profit.
(4) The association shall be dissolved on the grounds and according to the procedure established by the Not-for-Profit Legal Entities Act.
(5) Upon dissolution, the association shall be liquidated. Liquidation shall be carried out by the Manager or by a person designated by the General Meeting. The provisions of the Commerce Act shall apply, mutatis mutandis, to the insolvency or bankruptcy, as the case may be, to the procedure for liquidation and to the powers of the liquidator.
(6) The incorporators shall adopt a Charter which must state:
1. the corporate name of the association;
2. the purposes and the means for attainment thereof;
3. the seat;
4. the amount of initial contributions;
5. the objects of economic activity;
6. the governing bodies;
7. the powers of the bodies of the association;
8. the rules regarding the commencement and cessation of membership, as well as the procedure for settlement of property relations upon cessation of membership;
9. the duration wherefore the association is incorporated, if applicable;
10. the procedure for determination of the amount and the manner of transfer of contributions.
(7) Each member shall have the right to participate in the management of the association, to stand informed of the operation of the association, to benefit from the property thereof and from the results of the activity according to a procedure established in the Charter. Each member shall be obligated to make contributions in an amount provided for in the Charter. Membership shall cease according to the procedure and in the manner established in the Charter.
(8) Contributions by the members of the association which do not exceed the amount owed by the association under the contract for sale of heat referred to in Article 151 herein shall not form part of the economic activity of the association.
(9) The General Meeting and the Manager shall be the bodies of the association.
(10) The General Meeting shall be composed of all members of the association who are heat consumers.
(11) The General Meeting shall exercise the following powers:
1. amend and supplement the Charter;
2. approve other internal acts;
3. elect and remove a Manager and a Liquidator;
4. admit, release and expel members;
5. pass upon dissolution of the association;
6. adopt the guidelines and a programme of action of the association;
7. adopt the budget of the association;
8. pass upon the dueness and amount of membership dues and/or of contributions;
9. approve the report on the activities of the association;
10. pass upon any other matters as provided for in the Charter.
(12) Any resolution of the General Meeting shall be subject to judicial review as to the legal conformity thereof and compatibility with the Charter, the said review lying within the competence of the district court exercising jurisdiction over the seat of the association.
(13) The General Meeting shall be called to a session by the Manager on his or her own initiative or on a requisition of one third of the members of the association. Should the Manager fail to transmit a written notice of convocation of the General Meeting within one week, the meeting shall be called by the interested members or by a person authorized thereby.
(14) Any notice of convocation must state the agenda, the date, time and venue of the session of the General meeting, as well as the initiative for convocation.
(15) Any notice of convocation shall be posted on the notice board in the building where the management of the association resides not later than one week prior to the appointed date.
(16) For the valid transaction of business at any session of the General Meeting, more than one half of all members shall have to be present there, save as otherwise provided for by the Charter. Unless the required quorum is present, the session of the General Meeting shall stand adjourned to a time within one hour thereafter at the same venue and with the same agenda and can be held, with the attendance of whatever number of members have presented themselves, save as otherwise provided for in the Chamber.
(17) No member of the General Meeting shall be entitled to vote in determination of any matter affecting the member himself or herself, the spouse thereof, or any lineal relative thereof up to any degree of consanguinity, or any collateral relative thereof up to the fourth degree of consanguinity, or any affine thereof up to the second degree of affinity.
(18) A single person may not represent more than three members of the General Meeting by virtue of a written authorization, unless the Charter provides for a different representation quota or for a meeting of delegates. Re-authorization shall be inadmissible.
(19) Each member of the General Meeting shall be entitled to one vote. The General Meeting shall pass resolutions by a majority of the members attending.
(20) The Manager of the association shall be a natural person who is a member of the association and who shall perform the following functions:
1. represent the association;
2. ensure implementation of the resolutions of the General Meeting;
3. dispose of the property of the association in compliance with the provisions of the Charter;
4. prepare a draft budget and lay it before the General Meeting;
5. prepare a report on the activities of the association and lay it before the General Meeting;
6. make decisions on any matters which by law or according to the Charter do not lie within the competence of the General Meeting;
7. discharge any other duties provided for in the Charter.
Article 153. (1) All owners and holders of a real right of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch there from, shall be considered heat consumers and shall be obligated to install share distribution devices referred to in Item 3 of Article 140 (1) herein on the heating units in the properties thereof and to a price for heat under the terms and according to the procedure established in the relevant ordinance referred to in Article 36 (3) herein.
(2) (Amended, SG No. 74/2006) Where two thirds of all owners and holders of a real rights of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch thereof, do not wish to be considered consumers of heat for heating and/or for hot water supply, the said owners and holder shall be obligated to declare this in writing to the heat transmission company and to request disconnection of the heat supply for heating and/or hot water supply from the said subscriber sub-station or from the self contained branch there from.
(3) The persons referred to in Paragraph (2) shall be considered heat consumers until the date of disconnection of the heat supply.
(4) The heat transmission company shall be obligated to perform the disconnection as requested under Paragraph (2) within fifteen days after receipt of the application.
(5) If a heat share distribution system is applied, the consumers in a condominium-project building shall have no right to discontinue the delivery of heat to the heating units in the properties thereof by means of physical disconnection of the said heating units from the building system.
(6) (Amended, SG No. 74/2006) Any consumers in a condominium-project building, who discontinue the heat delivery to the heating units in the properties thereof, shall continue to be considered consumers of the heat released by the building system and by the heating units in the common parts of the building.
Article 154. (Amended and supplemented, SG No. 74/2006, amended, SG No. 59/2007) In respect of the liabilities of any customers, who are defaulting payers, and of the association referred to in Article 151 (1) herein to the heat transmission company, an enforcement order may be issued under Article 410 (1) of the Code of Civil Procedure, regardless of the amount of the said liabilities. An equalizing bill for the respective year for which the liability applies must have been prepared in respect of the liabilities of any customers with application of a share distribution system, who are defaulting payers.
Article 155. (1) (Supplemented, SG No. 74/2006) Heat consumers in a condominium-project building shall pay for the heat consumed using one of the following options available to them:
1. (amended, SG No. 74/2006) in ten equal monthly instalments and two equalizing instalments;
2. in monthly instalments calculated on the basis of a forecast consumption for the building and one equalizing instalment;
3. on the basis of the actual monthly consumption.
(2) The rules for calculation of the forecast consumption and equalization of the bills for the quantity of heat actually consumed by each individual consumer shall be established by the ordinance referred to in Article 125 (3) herein.
Article 156. (1) Heat shall be measured by means of commercial metering devices owned by the heat transmission company and installed on the property boundary of the facilities.
(2) The property boundary of the facilities:
1. between the producer and the heat transmission company shall be the last stop valve of the producer;
2. between the heat transmission company or the producer and the business consumers shall be the last stop valve upstream of the connecting mains of the consumers;
3. between the heat transmission company and the heat consumers in a self-contained building or in a condominium-project building shall be the last stop valve upstream of the distribution network of the building systems.
(3) Where the heat is metered by means of commercial metering devices installed on a site other than the property boundary referred to in Paragraph (2), the manner of heat metering shall be regulated according to the ordinance referred to in Article 125 (3) herein.

Chapter Eleven
PROMOTION OF POWER GENERATION CO-GENERATION
(Title amended, SG No. 49/2007)
Section I
Generation of Electricity from Renewable Energy Sources
(Repealed, SG No. 49/2007)
Article 157. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007).
Article 158. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007).
Article 159. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007).
Article 160. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007).
Article 161. (Repealed, SG No. 74/2006) .

Section II
Generation of Electricity by Combined Heat and Power Plants
Article 162. (1) (Amended and supplemented, SG No. 74/2006, effective 1.07.2007) The public provider and the end suppliers, respectively, shall be obligated to purchase from producers, connected to the respective network, the entire quantity of electricity from high- efficiency combined generation of heat and electricity, registered by a certificate of origin, with the exception of quantities used by the producer for own needs or for which the said producer has concluded contracts according to the procedure established by Section VII of Chapter Nine, or quantities with which the said producer participates on the balancing market.
(2) (Amended, SG No. 74/2006) The electricity referred to in Paragraph (1) shall be purchased at preferential prices according to the respective ordinance under Article 36, Paragraph 3.
(3) (Amended, SG No. 74/2006) The method for metering the co-generated electricity generated depending on the type of the technological cycle, the requirements for the technical metering and recording devices for co-generated electricity shall be specified by an ordinance of the Minister of Economy and Energy.
(4) (New, SG No. 74/2006) The form, content, terms and procedure to issue the certificates of origin for the electricity from combined electricity and heat generation shall be set forth by the ordinance under Article 159, Paragraph 3.
Article 162a. (New, SG No. 74/2006) (1) The transmission company and the distribution companies shall perform priority connection of all power plants generating electricity using high-efficiency combined generation, having installed capacity up to 10 MW, to the transmission, and the distribution network, respectively.
(2) Any costs required to connect the power plant to the respective network up to the border of ownership of the electric works shall be borne by the producer.
(3) Expansion and reconstruction of the transmission and/or distribution network, related to the connection of the power plant under Paragraph 1, shall be carried out by the transmission, and the distribution company, respectively, upon payment of a connection price.
(4) In order to implement the expansion and reconstruction of the networks under Paragraph 3, the transmission and/or the distribution company, respectively, may apply for outside financing.
Article 163. (Amended, SG No. 74/2006) The criteria, to which the analysis of the national potential for high-efficiency combined generation under Article 4, Paragraph 2, Item 11 shall conform, shall be set forth in the ordinance under Article 162, Paragraph 3.

Chapter Twelve
GAS SUPPLY
Section I
General Provisions
Article 164. Gas supply is a totality of activities comprehended in the transmission, transit transmission, storage, distribution and delivery of natural gas for the purpose of meeting the demand of consumers.
Article 165. The facilities and installations for performance of the activities comprehended in the transmission, storage and distribution of natural gas within the national territory, which are interconnected, shall function within an integral natural gas transmission system with a common mode of operation.

Section II
Natural Gas Transmission, Transit Transmission, Storage and Distribution
Article 166. Natural gas shall be transmitted and the natural gas transmission network shall be operated by the transmission company licensed under Item 2 of Article 39 (1) herein.
Article 167. (1) Transit transmission of natural gas through the national territory to other countries shall be performed by the transmission company.
(2) Transit transmission may furthermore be performed by any person licensed under Item 9 of Article 39 (1) herein.
Article 168. Natural gas shall be stored and the storage facilities shall be operated by a person licensed under Item 4 of Article 39 (1) herein.
Article 169. Natural gas shall be distributed and the distribution works shall be operated by distribution companies licensed under Item 3 of Article 39 (1) herein.
Article 170. The transmission company shall ensure:
1. integrated management and reliable functioning of the natural gas transmission network;
2. transmission of natural gas through the natural gas transmission network and metering of the said gas;
3. maintenance of the facilities and installations of the natural gas transmission network in accordance with technical requirements and with safe operation requirements;
4. expansion of the gas-transmission network in accordance with long- term forecasts and plans for development of gas supply and outside the framework of such plans, where economically justified;
5. maintenance and expansion of the auxiliary networks.
Article 171. The distribution company shall ensure:
1. management and reliable functioning of the natural gas distribution network;
2. distribution of natural gas through the natural gas distribution network and metering of the said gas;
3. maintenance of the facilities and installations of the natural gas distribution network in accordance with technical requirements;
4. development of the distribution network in accordance with natural gas consumption forecasts adopted by the Commission, and outside the framework of such forecasts where economically justified;
5. maintenance and development of the auxiliary natural gas distribution facilities and networks.
Article 172. (1) The transmission company and the distribution companies shall be obligated to provide access on non discriminatory terms to the transmission network and/or the distribution networks thereof to persons responsive to conditions set in rules adopted by the Commission.
(2) The transmission company or the distribution company, as the case may be, may refuse to provide access for lack of capacity or in case the provision of access would lead to breach of the technical conditions and the security of networks or would prevent the companies from fulfilling the public service obligations thereof, or if provision of access would result in substantial economic and financial difficulties to the transmission company or to the distribution company, as the case may be, as a result of contracts for delivery concluded with a "take or pay" clause.
Article 172a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) The public provider, the public supplier, the end supplier and the merchant may file a request to the Commission for temporary relief of the transmission or distribution company of its obligation to grant access under Article 172, Paragraph 1 in cases when granting such access would lead to serious economic and financial difficulties resulting from "take or pay" agreements executed before this Act becomes effective.
(2) The request under Paragraph 1 shall be submitted for each separate case before or immediately after the denial of access to the system.
(3) The request under Paragraph 1 shall be accompanied by detailed information on the type and scope of the economic and financial difficulties, and the measures taken to overcome them.
(4) The Commission shall grant the temporary relief under Paragraph 1 upon lack of any other economically feasible option to grant access and upon taking into consideration the following criteria:
1. fulfilment of obligations to the public and ensuring the safety of supply;
2. the company's position on the gas market and the actual state of competition on this market;
3. the degree of economic and financial difficulties;
4. the contract terms and conditions;
5. the measures taken to overcome the difficulties;
6. the degree to which, upon accepting the "take or pay" obligations, the company has been able to predict, under the provisions of this Act, the occurrence of serious difficulties;
7. the level of connectivity of the system to other systems and the degree of interaction of these systems;
8. the consequences of the temporary relief for the efficient application of the provisions of this Act, related to the development of a competitive market for natural gas.
(5) The Commission decision under Paragraph 4 shall be motivated.
(6) There shall be no serious difficulties under Paragraph 1, when:
1. natural gas sales have not fallen under the level of the minimum contracted quantities on "take or pay" gas purchase contracts;
2. the terms of the respective "take or pay" gas purchase contract may be renegotiated.
(7) The Commission shall notify the European Commission immediately on any effective temporary relief decision under Paragraph 4 and shall send the required information.
(8) Upon request by the European Commission, the Commission may, within 28 days, to amend or repeal its decision under Paragraph 4, and shall notify the European Commission thereof.
(9) The Commission shall notify the European Commission in all cases, when the Commission does not amend or repeal its decision under Paragraph 8. In this case, the temporary relief shall be decided by the European Commission.
Article 172b. (New, SG No. 74/2006, effective 1.07.2007) (1) Gas storage operators shall grant access to natural gas storage facilities to transmission and distribution network operators, the public provider, the public suppliers, the end suppliers, the natural gas merchants and the eligible consumers on equal-treatment basis.
(2) Gas storage operators may deny access:
1. for lack of capacity;
2. if granting access would result in compromising the technical conditions and safety of the facilities;
3. if granting access would prevent operators from fulfilling their public service obligations.
Article 172c. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Upon any significant changes for the development of the transmission network, the distribution networks in a self-contained area under Article 43, Paragraph 5, and in order to promote investment, the Minister of Economy and Energy, per request from the interested parties, may submit a request to the European Commission for temporary relief from the application within this area of any provisions under Article 37 and Article 48, Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2.
(2) The Minister of Economy and Energy shall evaluate the grounds for the request under Paragraph 1 upon taking into account the following criteria:
1. need for infrastructure investment, which in a competitive market environment would not be economically feasible;
2. rate of return of the needed investment;
3. size and age of the gas system at the self-contained area;
4. prospects for the respective gas market development;
5. size, location, features, social-economic and demographic factors at the self-contained area.
(3) For newly-built transmission networks, a temporary relief may be granted only if within the self-contained area there are no other such networks or if the existing ones have been built no more than 10 years ago. In these cases, the relief may not be for more than 10 years, commencing on the date of the first delivery of natural gas to the self-contained area.
(4) For distribution networks, a temporary relief may be granted for a period of no more than 20 years since the first delivery of natural gas to the self-contained area.
(5) The Minister of Economy and Energy shall make a decision on the request within three months, and immediately after the act accepting the request as reasonable becomes effective shall submit a request for temporary relief to the European Commission.

Section III
Natural Gas Transactions
Article 173. (1) Transactions in natural gas shall be effected on the basis of written contracts in compliance with the provisions of this Act and of the natural gas trading rules adopted by the Commission.
(2) The rules referred to in Paragraph (1) shall specify the manner of administering transactions in natural gas.
Article 174. Transactions in natural gas shall be delivery, transmission through a transmission network and distribution networks, and storage of natural gas.
Article 175. The following may be parties to transactions in natural gas:
1. a public provider of natural gas;
2. (repealed, SG No. 74/2006, effective 1.07.2007) ;
3. gas extraction companies;
4. gas storage operators;
5. a transmission company;
5a. (new, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a combined operator;
6. a distribution company;
7. natural gas traders;
8. eligible consumers;
9. consumers other than eligible consumers.
10. (new, SG No. 74/2006, effective 1.07.2007) a natural gas end supplier;
11. (new, SG No. 74/2006, effective 1.07.2007) end supplier customer consumers.
Article 176. (1) Gas extraction companies may conclude natural gas delivery transactions with the public provider of natural gas, with the public supplier of natural gas, with storage operators, with natural gas traders and with eligible consumers.
(2) Gas extraction companies may conclude natural gas transmission transactions with the transmission company and the distribution company.
(3) Gas extraction companies may conclude natural gas storage transactions with the natural gas storage operators.
(4) Gas extraction companies and natural gas consumers referred to in Article 175 (8) and (9) herein inside and outside Bulgaria may construct direct gas pipelines between each other and may conclude contracts for delivery of natural gas through the said gas pipelines.
Article 176a. (New, SG No. 74/2006) The extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers may execute natural gas supply transactions with resident persons of a European Union member country, or persons registered in a country, with which the Republic of Bulgaria has an agreement under an international act for mutual application of the respective European Communities law:
1. when the extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers are entitled to free trade in natural gas under the law of the other country, and
2. on conditions of mutuality, when the law of the other country makes a provision for free trade in natural gas for its eligible consumers.
Article 177. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public provider of natural gas shall be a legal person registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which may conclude natural gas delivery transactions with gas extraction companies, with natural gas traders, with public suppliers of natural gas, with eligible consumers and with consumers directly connected to the transmission network.
(2) The public provider of natural gas may conclude natural gas transmission transactions with the transmission and distribution companies.
(3) The public provider of natural gas may conclude natural gas storage transactions with the gas storage operators.
(4) (Repealed, SG No. 74/2006, effective 1.07.2007) .
Article 178. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public suppliers of natural gas shall be legal persons registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which conclude natural gas delivery transactions with end consumers connected to the natural gas distribution network for the area for which the said suppliers are licensed.
(2) (Repealed, SG No. 74/2006, effective 1.07.2007).
Article 178a. (New, SG No. 74/2006, effective 1.07.2007) The end supplier shall be any person, licensed for its activity, providing natural gas supply to household consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover, according to the rules under Article 21, Paragraph 1, Item 8.
Article 178b. (New, SG No. 55/2007) The delivery of natural gas by the public provider and by the end suppliers shall be a universal service within the meaning given by this Act.
Article 179. (1) A natural gas trader may be any Bulgarian or foreign legal person registered as a merchant under the Commerce Act or under the national legislation thereof.
(2) (Amended, SG No. 74/2006) Outside the cases under Article 176a, natural gas traders shall conclude natural gas transactions with gas extraction companies inside or outside Bulgaria, with eligible consumers, with other natural gas traders, with the public provider of natural gas and with the natural gas storage operators.
Article 180. (1) Eligible consumers shall be natural gas consumers responsive to certain eligibility conditions specified in the rules referred to in Article 173 (1) herein and having the right to choose the persons wherefrom to purchase natural gas inside and/or outside Bulgaria.
(2) Eligible consumers shall be obligated to notify the transmission company and/or the distribution company in advance of any natural gas contracts concluded thereby according to a procedure and in a form established in the rules referred to in Article 173 (1) herein.
(3) The transmission company and/or the distribution company shall meter the natural gas consumed according to a procedure and a method specified in the rules referred to in Article 173 (1) herein.
Article 181. Natural gas contracts shall be concluded:
1. at prices regulated by the Commission for universal services of natural gas transmission, distribution and delivery;
2. at prices freely negotiated between the parties on an organized market, administered and managed by the transmission system operator, under the terms and according to the rules referred to in Article 173 (1) herein.
Article 182. (1) Gas extraction companies, natural gas traders and eligible consumers shall conclude natural gas transactions between each other at freely negotiated prices.
(2) The parties referred to in Paragraph (1) and the transmission company may furthermore conclude natural gas market balancing transactions under terms, according to a procedure and according to rules for price formation of natural gas intended for balancing, as provided for in the rules referred to in Article 173 (1) herein.
Article 183. (Repealed, SG No. 74/2006, effective 1.07.2007).
Article 183a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall sell natural gas on publicly known general conditions.
(2) The general conditions shall include:
1. the conditions on supply quality;
2. information, provided by the supplier;
3. term of validity of the contract;
4. the energy company liability for any violation of the general terms.
(3) The end supplier shall publish the general terms in at least one national and one local daily publication.
(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.
Article 183b. (New, SG No. 74/2006, effective 1.07.2007) (1) End supplier's consumers shall execute an agreement with the distribution company on the transmission through distribution networks of the natural gas consumed by them on publicly known general conditions.
(2) The general conditions shall include:
1. the conditions on supply quality;
2. the terms for supply termination or suspension;
3. liability incurred by the energy company in the event of unwarranted suspension or poor quality of supply.
(3) The distribution company shall publish the general conditions in at least one national and one local daily publication.
(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.
Article 184. (Amended and supplemented, SG No. 74/2006, effective 1.07.2007, amended, SG No. 59/2007) The public provider, the public suppliers, and the end suppliers of natural gas shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for supply of natural gas regardless of the amount of the said receivables.

Section IV
Operational Management
Article 185. (1) The centralized operational management, the coordination and control of the mode of operation of the natural gas transmission network shall be performed by the transmission network operator.
(2) Operational management of each distribution network shall be performed by the distribution network operator.
(3) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The directives of the natural gas transmission network operator shall be mandatory for the natural gas distribution network operators, the consumers, the gas extraction companies and the gas storage operators connected to the transmission network, and for the other companies in the vertically integrated company, in cases when the combined operator is part of a vertically integrated company.
(4) The natural gas transmission network operator shall be a specialized unit within the structure of the transmission company.
(5) The natural gas distribution network operators shall be specialized units within the structure of distribution companies.
Article 186. (1) The transmission network operator shall ensure:
1. reliable, safe and efficient functioning of the natural gas transmission network;
2. maintenance of a balance between import, extraction and consumption of natural gas;
3. transmission of natural gas through the natural gas transmission network in compliance with quality requirements;
4. non-discrimination of consumers upon transmission of natural gas;
5. secure and efficient functioning of auxiliary networks;
6. operational management of the modes of operation of storage facilities during injection of natural gas under pressure and extraction of natural gas;
7. optimum mode of operation of the transmission network upon performance of the activity comprehended in the transit transmission of natural gas.
(2) The transit transmission network operator shall ensure:
1. reliable, safe and efficient functioning of the transit transmission network;
2. transit transmission of natural gas through the transit transmission network;
3. secure and efficient functioning of auxiliary networks and facilities;
4. operational management of the modes of operation of storage facilities upon injection of natural gas under pressure and extraction of natural gas.
Article 186a. (New, SG No. 74/2006) (1) When the combined operator is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, not related to transmission, transit transmission, and storage.
(2) In order to ensure the operator's independence under Paragraph 1, any persons responsible for the management, including operational management of the combined operator:
1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, distribution, public delivery, public supply and trade in natural gas;
2. shall take independent decisions in the course of their duties under this Act;
3. shall not allow discriminatory actions in the course of their duties under this Act;
(3) The combined operator shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The combined operator shall designate an employee, responsible for the control over this programme's implementation.
(4) The combined operator shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.
Article 187. (1) For the purposes of metering of natural gas, the transmission network operator shall ensure:
1. technical and metrological support, development and modernization of the commercial metering devices for the quantity of natural gas entering and leaving the transmission system;
2. maintenance of a data base with the readings of commercial metering devices of the quantity of natural gas referred to in Item 1 and under transactions at freely negotiated prices and on the balancing market.
(2) The owners of natural gas commercial metering devices shall submit to the transmission network operator the readings taken by such devices regarding the transactions at freely negotiated prices and balancing transactions in natural gas.
(3) Parties to natural gas transactions shall have the right to receive information from the data base regarding the quantities of natural gas traded by the said parties under the transactions.
(4) The terms and procedure for maintenance of the commercial metering devices, maintenance of the data base and access thereto shall be regulated by the rules referred to in Article 173 (1) herein.
Article 188. The natural gas transmission network operator shall administrate natural gas transactions at freely negotiated prices and shall organize the balancing of the natural gas market in accordance with the rules referred to in Article 173 (1) herein and, to this end shall:
1. keep registers of the persons concluding transactions at freely negotiated prices and for balancing the natural gas market;
2. keep registers of the contracts concluded between the persons referred to in Item 1;
3. receive, arrange on priority lists according to price and technological criteria, and dispatch proposals and orders for purchase/sale for balancing the natural gas market;
4. apply a method for computation and fix balancing natural gas prices for each settlement period;
5. prepare advance and final notices of the amounts due for natural gas market balancing transactions from the participants for each settlement period;
6. control the financial security of natural gas market balancing transactions and issue mandatory instructions to market participants in connection with this;
7. have the right, upon occurrence of circumstances endangering the security of operation of the natural gas transmission system or of parts thereof, to suspend the performance of transactions or to change the quantities of natural gas contracted there under, under terms and in a manner described in the rules referred to in Article 173 (1) herein;
8. provide information regarding forecast consumption of natural gas, transmission system limitations, references about natural gas prices upon market balancing in prior periods, and other information as may be required by the participants.
Article 189. (1) The transmission company shall be party to all natural gas market balancing transactions.
(2) The transmission company shall generate no profit from any transactions referred to in Paragraph (1).
(3) The costs of performance of the functions referred to in Article 188 herein shall be allowed as economically justified costs under Item 2 of Article 31 herein.
Article 190. Distribution network operators shall ensure:
1. reliable, safe and efficient functioning of the distribution network;
2. distribution of natural gas to consumers while in compliance with security and quality requirements;
3. secure and efficient functioning of the auxiliary networks;
4. non-discrimination of consumers upon natural gas distribution.
Article 190a. (New, SG No. 74/2006) (1) When the distribution company is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, which are not related to distribution.
(2) In order to ensure the distribution company's independence under Paragraph 1, any persons responsible for the management, including operational management of the gas distribution networks:
1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, transmission, public delivery, public supply and trade in natural gas;
2. shall take independent decisions in the course of their duties under this Act;
3. shall not allow discriminatory actions in the course of their duties under this Act;
(3) The distribution company shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The distribution company shall designate an employee, responsible for the control over this programme's implementation.
(4) The distribution company shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.
(5) Provisions in Paragraphs 1-4 shall not apply to vertically integrated natural gas companies, when less than 100 000 end users of natural gas are connected to the respective distribution network.
Article 191. (Amended, SG No. 74/2006) Transmission and distribution network operators shall be obligated to respect the confidentiality of any information, which constitutes commercial secret, obtained in the course of or in connection with the fulfilment of the obligations thereof, as well as provide information related to their activities in a non-discriminatory manner.
Article 192. The terms and procedure for the performance of the activities of transmission and distribution network operators shall be established by an ordinance of the Minister of Energy and Energy Resources.

Section V
Natural Gas Metering
Article 193. Natural gas shall be transmitted through a natural gas transmission network using high-pressure gas pipelines to the outlets of natural gas metering stations or natural gas regulation stations.
Article 194. Natural gas shall be distributed through the natural gas distribution network from the outlets of natural gas metering stations or from outlets of natural gas regulation stations of the transmission network to the consumer natural gas metering device.
Article 195. (1) The quantity of natural gas destined for consumers connected to the transmission network shall be metered by means of commercial metering devices which are owned by the transmission company.
(2) The quantity of natural gas destined for consumers connected to the distribution network shall be metered by means of commercial metering devices owned by the distribution company.
(3) The quantity of natural gas destined for storage shall be metered by means of commercial metering devices owned by the company licensed for natural gas storage.
(4) Natural gas consumers or owners on the properties whereof the commercial metering devices are installed shall be obligated to provide access to the said devices to authorized representatives of the public supplier for installation and inspection, reading and maintenance of the metering devices under terms stipulated in the general conditions referred to in Article 183 herein.
(5) Transmission network operators, distribution network operators and/or storage facility operators shall determine the location and type of the commercial metering devices to be installed.

Section VI
Connection to Natural Gas Pipeline Network
Article 196. (1) Connection to the transmission and distribution networks shall be established under terms and according to a procedure established in an ordinance on connection, issued by the Minister of Energy and Energy Resources.
(2) Connection to the natural gas transmission network and/or to the natural gas distribution network of extraction companies, natural gas storage companies, distribution companies and end consumers shall be established at prices fixed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein and on the basis of a written contract concluded between the transmission company or the distribution companies, as the case may be, and the connecting persons.
Article 197. (1) The transmission company shall be obligated to connect to the network thereof, at an interconnection point designated thereby, the distribution companies, extraction companies, and natural gas storage companies.
(2) Eligible natural gas consumers may also be connected to the transmission network through direct connecting gas pipelines.
(3) The transmission company may refuse to establish connection to the network where:
1. there is lack of capacity of the network, or
2. there is lack of a link with the network, and
3. improvement of the network is economically unjustified.
(4) In case of a refusal under Paragraph (3), the extraction companies, the natural gas storage companies and the eligible natural gas consumers may construct, for their own account, the respective link with the transmission network.
(5) The owner of the connecting gas pipeline shall be obligated to ensure the servicing, maintenance and repair of the said gas pipeline.
(6) The transmission company may service, maintain and repair the connecting gas pipelines at the request of the owner and against payment.
(7) Consumers connected to the natural gas transmission network shall be obligated to provide the relevant licensed natural gas distribution company access through their own facilities for the purposes of natural gas transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.
Article 198. Distribution companies shall be obligated to build the distribution network thereof for their own account up to the interconnection point designated by the transmission company.
Article 199. (1) The distribution company shall be obligated to connect and to ensure the supply of natural gas to consumers on non-discriminatory conditions and in compliance with technical requirements for reliable and safe operation.
(2) By authorization of the Commission, the distribution company may connect a natural gas consumer located within the area of another distribution company where this is technically and economically advisable and is in the interest of consumers.
(3) The branches and the facilities for connecting consumers to the relevant distribution network shall be constructed by the distribution company.
Article 200. (1) (Amended, SG No. 95/2005) The layout and safe operation of the transmission and distribution gas pipelines, of the natural gas facilities, installations and appliances, shall be regulated by an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and Energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.
(2) The technical rules and standard specifications for design, construction and use of the facilities and installations for natural gas transmission, storage, distribution and delivery shall be determined by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.
(3) (Amended, SG No. 95/2005) The layout and safe operation of oil pipelines and petroleum product pipelines within the territory of the Republic of Bulgaria shall be stipulated in an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.

Chapter Thirteen
COERCIVE ADMINISTRATIVE MEASURES
Article 201. (1) The Commission or the Minister of Energy and Energy Resources shall impose the measures covered under Paragraph (2) if they establish that the legal persons controlled under this Act, the employees thereof or persons who, under contract, perform managerial functions therein or conclude transactions for their account, have committed or are committing any acts whereby:
1. they violate any provisions of this Act, of the statutory instruments of secondary legislation on the application thereof, of acts issued by the Commission and by the Minister of Energy and Energy Resources;
2. they endanger the security of the energy system, public interests, or interests of electricity, heat and natural gas consumers or of other energy companies;
3. they breach the conditions for performance of the licensed activity;
4. they obstruct the exercise of control activities by the Commission or by the Minister of Energy and Energy Resources.
(2) In the cases covered under Paragraph (1), for the purpose of prevention or cessation of the violations, as well as for elimination of the harmful consequences of such violations, the Commission or the Minister of Energy and Energy Resources or persons authorized thereby, each acting according to the competence vested therein, shall impose the following coercive administrative measures:
1. issue mandatory written instructions:
(a) to cease the performance of particular actions or to mandatorily undertake such actions within a prescribed time limit;
(b) to conduct expert assessments, inspections, tests of facilities and installations, parts thereof, systems or components;
(c) to change operating conditions of energy works, parts thereof, systems or components;
(d) to modify designs and structures relevant to the safety of persons and networks;
(e) to certify the staff, including testing of knowledge and skills, organizing training and qualification courses;
2. to order the licensee to convene a general meeting and/or to schedule a meeting of the management or supervising bodies with a preset agenda for making decisions on the measures that have to be taken;
3. direct in writing a suspension or limitation of the licensed activity;
4. appoint a special manager in the cases provided for in this Act.
(3) The act whereby a coercive administrative measure is imposed shall establish an appropriate time limit for the execution thereof. Coercive administrative measures shall be applied until elimination of the reasons that led to the imposition of such measures.
Article 202. (1) The proceedings for imposition of coercive administrative measures shall be initiated by the Commission or by Minister of Energy and Energy Resources, acting on a memorandum of ascertainment drafted by the persons entitled to exercise control under this Act.
(2) The persons concerned shall be notified of the initiation of proceedings for imposition of coercive administrative measures.
(3) Any notifications and the communications in the proceedings referred to in Paragraph (1) may furthermore be effected by means of registered mail with advice of delivery, by telegraph, teleprinter or facsimile machine.
Where effected by means of registered mail with advice of delivery or by telegraph, notification or communication shall be certified by an advice of delivery, where effected by means of telephone call, notification or communication shall be certified in writing by the official who made the call, or where effected by means of teleprinter or facsimile machine, notification or communication shall be certified by confirmation in writing of a message sent.
(4) Should any notification or communication in the proceedings referred to in Paragraph (1) be not received at the address, telephone, telex or facsimile number as named by the persons, the said notification or communication shall be deemed effected by the posting thereof in a place expressly provided for this purpose in the building of the Commission or of the Ministry of Energy and Energy Resources.
Any such posting shall be attested by a memorandum drafted by officials designated by an order of the Chairperson of the Commission or by the Minister of Energy and Energy Resources.
(5) Coercive administrative measures shall be imposed with a reasoned written decision or by an order which shall be communicated to the person concerned within seven days after rendition.
Article 203. (1) Any decision referred to in Article 202 (5) herein shall be appealable before the Supreme Administrative Court care of the Commission or care of the Minister of Energy and Energy Resources within fourteen days after communication of the said decision.
(2) Any decision or any order imposing a coercive administrative measure shall be subject to immediate execution.
(3) An appeal against any decision imposing a coercive administrative measure shall not stay the execution of the said decision.
Article 204. Save insofar as any specific rules are provided for in this Chapter, the provisions of the Administrative Procedure Code shall apply.

Chapter Fourteen
ADMINISTRATIVE PENALTY PROVISIONS
Article 205. (1) Any person, who performs or suffer the performance of any activities under this Act without a licence in the case where a licence is required, shall be liable to a fine of BGN 50,000 or exceeding this amount but not exceeding BGN 100,000, unless subject to a severer sanction.
(2) Where the violations referred to in Paragraph (1) have been committed by a legal person or a sole trader, a pecuniary penalty of BGN 100,000 or exceeding this amount but not exceeding BGN 150,000 shall be imposed.
(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraphs (1) and (2).
Article 206. (1) (Amended, SG No. 49/2007) Any energy company, which breaches the conditions of a licence issued thereto, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 207. (1) Any energy company, which refuses in non conformity with the law:
1. to establish a connection to the relevant energy networks;
2. to conclude a contract for sale of electricity, heat or natural gas;
3. (amended, SG No. 49/2007) to provide access to electricity and natural gas transmission or distribution networks, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 208. (1) (Amended, SG No. 49/2007) Any energy company, which fails to submit the required information in the cases provided for in this Act, shall be liable to pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 100,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 209. (1) Any consumer, who or which fails to provide access to the own fixtures and facilities under the terms established by Article 117 (7) and Article 197 (7) herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000 or to a pecuniary penalty of BGN 7,000 or exceeding this amount but not exceeding BGN 20,000.
(2) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1).
Article 210. (1) (Amended, SG No. 49/2007) Any person covered under Article 30 (1) herein, which sells electricity, heat or natural gas at prices subject to regulation without such prices having been endorsed or fixed by the Commission or at prices higher than the prices endorsed or fixed by the Commission according to Article 30 herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 211. (1) (Amended, SG No. 49/2007) Any energy company, which fails to comply with the technical standards or requirements for operation of energy works or the standards for building and storage of stocks of fuels by electric power and/or heat generation plants, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 212. (Amended, SG No. 74/2006, repealed, SG No. 49/2007).
Article 212a. (New, SG No. 74/2006) (1) Any legal person or a sole trader, who, in violation of Article 139a, Paragraph 1, performs share distribution activities in violation of the registration regime, shall be liable to a pecuniary penalty between BGN 5,000 and BGN 10,000.
(2) Upon any recurring violation, the pecuniary penalty shall be three times the maximum amount of the penalty under Paragraph 1.
Article 213. (1) (Amended, SG No. 74/2006) Any person, who fails to comply with the technical conditions and procedure set for heat supply, for disconnection of heat supply and the rules for share distribution of heat under Article 125 (3) herein, shall be liable to a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 25,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 214. (Amended, SG No. 74/2006) (1) A fine of BGN 1000 or exceeding this amount but not exceeding BGN 5000 shall be imposed on any person, unless subject to a severer sanction:
1. who disrupts the normal electricity supply, heat supply or natural gas supply;
2. who causes the introduction of a scheduled outage regime;
3. who uses heat without the quantities thereof being metered by means of a commercial metering device and/or without having such heat distributed thereto upon share distribution, or who alters the readings of commercial metering and recording devices, or who impedes the proper functioning of such devices.
(2) A repeated violation under Paragraph (1) shall be punishable by a fine equivalent to double the maximum amount of the fine referred to in Paragraph (1).
Article 215. (1) Any person, who obstructs with the performance by officials and control authorities of the obligations thereof under this Act, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 200, unless the act constitutes a criminal offence.
(2) Any person, who fails to perform the prescriptions of the officials or of the control authorities or who tolerates non performance of such prescriptions, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000 unless subject to a severer sanction.
(3) Any person, who or which fails to comply with an effective decision of the commission, shall be liable to a fine of BGN 3,000 or exceeding this amount but not exceeding BGN 10,000 or to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 60,000.
Article 216. (Amended, SG No. 49/2007) Any official, who fails to fulfil the obligations under this Act, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000, unless subject to a severer sanction.
Article 217. A repeated violation under Articles 215 and 216 herein shall be punishable by a fine equivalent to treble the maximum amount of the fine or pecuniary penalty.
Article 218. (1) Any violation under Article 214 herein, which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to quintuple the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 219. (1) (Amended, SG No. 49/2007) Any official in an energy company, who suffers the commission of any violation covered under Articles 206, 207, 210, 211 herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 8,000.
(2) A repeated violation under Paragraphs (1) to (4) shall be punishable by a fine equivalent to treble the maximum amount of the fine referred to in Paragraph (1).
Article 220. (1) Any person, who shall fail to act or who shall suffer another to fail to act on a directive of an operator referred to in Article 109 (2), Article 113 (2), Article 131 (3) and Article 185 (3) herein, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.
(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 20,000.
(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).
Article 221. (1) Any energy company, whereof an operator fails to comply with Article 73 (2) herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 50,000.
(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).
Article 222. (1) Any electricity, heat or natural gas consumer, who fails to fulfil the obligation thereof under Article 117 (7), Article 138 (3) and Article 197 (7) herein, shall be punishable by a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.
(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 30,000 or exceeding this amount but not exceeding BGN 50,000.
(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).
Article 223. Any person, who violates any mandatory provisions of the statutory instruments on application of this Act, shall be sanctioned by the administrative sanctioning authority by a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, unless subject to a severer sanction, or by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.
Article 224. Any person referred to in Article 79 (1) herein, who discloses, provides, publishes, uses or disseminates in any other manner any data and circumstances constituting an official secret, shall be liable to a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 5,000.
Article 224a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 3, Paragraphs 2, 3, and 6, Article 4, Article 5, Article 6, Paragraphs 1, 2, 3, 5, and 6 of Regulation 1228/2003/EC of the European Parliament and the Council on conditions for access to the network for cross-border exchanges in electricity, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.
(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.
Article 224b. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 4, Article 5, Paragraphs 2, 3, 4 and5, and Article 6, Article 7, Paragraph 6, and Article 8 of 1775/2005/EC of the European Parliament and the Council on conditions for access gas transmission networks, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.
(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.
Article 225. (1) The violations under this Act shall be ascertained by statements drawn up by the persons referred to in Item 1 of Paragraph (1) and Item 1 of Paragraph (2) of Article 77 herein.
(2) (Amended, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, SG No. 49/2007) The penalty decrees under Articles 205, 206, 207, 208, 209, 210, 215, 216, 217, 218, 219, 222, 223 and 224, 224a и 224b herein shall be issued by the Chairperson of the Commission or by an official authorized by the Commission.
(3) The penalty decrees under Articles 211, 213, 214, 215, 216, 217, 218, 219, 220, 221, 223 and 224 herein shall be issued by the Minister of Energy and Energy Resources or by an official authorized thereby.
(4) Violations shall be ascertained, and penalty decrees shall be issued, appealed and executed under the terms and according to the procedure established by the Administrative Violations and Sanctions Act.
(5) Pending the issuance of a penalty decree, the person affected by the administrative violation may approach the administrative sanctioning authority with a request for compensation for the damages sustained by the said person to an amount not exceeding BGN 20,000.

SUPPLEMENTARY PROVISION
§ 1. Within the meaning given by this Act:
1. "Subscriber sub-station" shall be a fixture whereby heat is delivered, metered, transformed and regulated as to parameters from the heat transmission network to consumers.
1a. (New, SG No. 74/2006) "Balancing group" shall be any group comprised of one or more electricity merchants, network users or owners, organised under the requirements of the rules under Article 91, Paragraph 2.
2. (Amended, SG No. 74/2006) "Balancing energy" shall be the active energy which the electric power grid operator activates to compensate the difference between the agreed and the actual delivery schedules registered at the operator, as well as the fluctuations of loads without agreed delivery schedule.
3. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007).
3a. (New, SG No. 74/2006) A "vertically integrated company" shall be any energy company or interrelated energy companies, conducting at least one activity of transmission, distribution, storage activity and at least one activity of production/extraction, public delivery, public supply or trade in electricity or natural gas, when one of the companies is capable of controlling other(s) or exercising influence in decisions related to above activities.
4. (Amended, SG No. 74/2006) "Universal service" shall be the transport, delivery, or supply of energy of a particular quality, at a regulated price and under other agreed conditions, which may not be refused for reasons not specified in the Act.
5. "High-efficiency combined generation of heat and electricity by thermoelectric power plants" shall be such generation performed by plants:
(a) constructed after the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 10 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;
(b) constructed before the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;
(c) using renewable energy sources and/or with unit electricity generating capacity of up to 1 megawatt, where the said generation of heat and electricity leads to saving of up to 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity.
6. (Repealed, SG No. 49/2007).
7. "Natural gas metering station" shall be a facility equipped with commercial natural gas metering devices.
8. "Natural gas transmission network" shall be a system of high pressure gas pipelines and the appurtenant installations with an integrated technological mode of operation for transmission of natural gas to the outlet of a natural gas metering station or a natural gas regulation station, to which consumers and/or distribution companies are connected
9. "Natural gas distribution network" shall be a local or regional system of high-pressure, medium-pressure and low-pressure natural gas pipelines and the appurtenant installations for transmission of natural gas to the relevant consumers within an area specified by a licence.
10. "Natural gas regulation station" shall be a facility for regulation of natural gas pressure, also equipped with commercial metering devices
11. "Natural gas transmission system" shall be a system of connected networks for transmission, transit transmission ("wheeling") and distribution of natural gas, as well as facilities to and from natural gas storage facilities and extraction companies within the national territory.
12. "Direct gas pipeline" shall be a gas pipeline connecting directly a natural gas extraction company to a non-household consumer.
13. "Contract for delivery with a 'take or pay' clause" shall be a contract providing for mandatory payment of quantities of natural gas stipulated therein at a fixed price, irrespective of whether the said natural gas has been received.
14. "Ancillary services" shall be all services necessary for the operation of the electric power grid, including participation in voltage regulation and delivery of reactive power, participation in primary frequency regulation and secondary frequency regulation and exchange of power, spinning reserve, start-up capacity after a major break-down without the aid of an off-site source, and continuous load following.
15. "Access" shall be the right to use the transmission network and/or the distribution networks for paid transmission of electricity or natural gas at a price and under terms specified in an ordinance.
16. "Natural gas delivery" shall be sale of natural gas to consumers.
17. "Long-term forecast energy balances" shall be forecast energy balances covering a period of 10 to 15 years.
18. (Repealed, SG No. 49/2007).
19. "Electric fixture" shall be a totality of machinery, plant and apparatus intended for transmission, conversion and distribution of electricity.
20.(Amended, SG No. 74/2006) "Electricity transmission network" shall be a totality of electric power lines and electric fixtures, which serves for transmission of electricity, transformation of electricity from high-voltage to mid-voltage, redistribution of electric power streams, or for electricity transit transmission ("wheeling") to a third party.
21. (Amended, SG No. 74/2006) "Electric power lines" shall be overhead or cable facilities for connecting of electric fixtures and intended for transmission, transit, or distribution of electricity, conforming to "linear engineering electric supply networks" as defined by the Spatial Development Act.
22. "Electricity distribution network" shall be a totality of electric power lines and high-voltage, medium-voltage and low voltage electric fixtures, which serves for distribution of electricity.
23. (Amended, SG No. 74/2006) "Energy work" shall be a work or a totality of works whereat or whereby electricity and/or heat is generated in a particular output, oil or natural gas is extracted or stored, electricity, heat, and natural gas, oil or oil products are transmitted as well as converted as to parameters or type, as well as the ancillary networks and facilities of any such work, electricity, heat or natural gas is distributed through networks, as well as the ancillary networks and facilities of any such work, excluding the on-site systems of consumers.
24. (Supplemented, SG No. 74/2006) "Energy company" shall be a legal person which performs one or more of the activities comprehended in the generation, conversion, transmission, storage, distribution, delivery, and supply of electricity, heat or natural gas on the grounds of a licence issued under this Act, or a person, which performs an activity comprehended in the generation of electricity and/or heat without being obligated to obtain a licence for the activity performed thereby under this Act, or a person performing oil and oil product transmission activity through pipelines.
24a. (New, SG No. 74/2006) "Energy resources" shall be primary energy resources (coal, oil, gas, et al.), oil products, as well as renewable energy sources used to produce electricity and heat.
25. (Repealed, SG No. 74/2006).
26. "Economically inexpedient", where applied to an energy company, shall be the construction of connecting facilities wherein the investment cannot be recouped by the resources raised from depreciation charges and the profit from sales of energy and natural gas through the said facilities for a period of eight years, plus the price that a consumer will pay for establishment of the connection.
27. "Individual allocator of heat for heating" shall be a technical device whereof the readings are used for distribution of the heat consumed by the heating units in a building.
The readings of any such allocator shall be in relative units which shall be adjusted by evaluation factors depending on the type of the device and the type of the heating unit. The individual allocators shall serve only to determine the share of heat consumed by each heating unit as a share in the aggregate consumption of heat by the building.
27a. (New, SG No. 74/2006) "Combined operator" shall be any energy company, which has obtained at least two of the licences under Article 39, Paragraph 1, Item 2, Item 4, and/or Item 9.
28. "Combined generation of heat and electricity" shall be generation of heat and electricity in a single process depending on the demand for heat.
28a. (New, SG No. 74/2006, effective 1.07.2007) "End supplier" shall be any energy company supplying electricity or natural gas to household users and companies having less than 50 employees and less than 19.5 mil. BGN annual turnover, which have not exercised their right to select the person, from which to purchase electricity or natural gas.
29. "Short-term forecast energy balances" shall be forecast energy balances covering a period of one year.
30. "Cross subsidization for integrated energy companies: between individual activities subject to licensing under this Act, and/or between activities subject to licensing under this Act and other activities" shall be the assimilation of the costs of another licensed activity to the prices for a particular licensed activity and/or assimilation of costs of a non- licensed activity to the prices of a licensed activity.
31. "Cross subsidization between individual groups of consumers" shall be the assimilation to the prices for a group of consumers of an amount of costs larger than the costs relevant to the individual supply of the said group or of an amount of costs smaller than the additional costs incurred by the joint supply of the said group with the rest of the groups.
31a. (New, SG No. 74/2006) "Oversight on the security of supply" shall be the balance between the supply and demand of electricity and natural gas on the national market, the level of anticipated future consumption and all projected additional capacities, which are in process of planning or building, the quality and the level of network maintenance, as well as the measures to cover peak consumptions and overcoming the shortages of one or more providers, suppliers, or merchants.
32. "Material resources" shall be the availability of principal and auxiliary facilities required to ensure the normal functioning of an energy work.
33. "Electric power grid interconnection point" shall be any of the points in the structure of the electric power grid owned by the transmission company, whereto the connecting facility of one or more consumers and producers are connected.
34. "Aggregate heated volume of a building" shall be the sum total of the volumes of the properties of consumers and the volumes of the premises constituting common parts of a condominium project building, intended to be heated according to the design.
35. (Amended, SG No. 74/2006) "Organized electricity market" shall be a totality of forms of trade in electricity whereon the method, place and time of conclusion of transactions are publicly known and pre-announced in trading rules.
36. "Organizational structure" shall be the organization of the managerial and shop-floor personnel that reflects the staff size, the functional links, the coordination between the individual positions and units depending on the needs of the licensed activity.
36a. (New, SG No. 74/2006) "Principal supplier" shall be any provider company and/or persons related thereto, having market share exceeding 75 percent.
37. "Heating units" shall be the tubular heating units and vertical heating pipes, the radiator heating devices, the baseboard heating units and convectors which are structural elements used for release of heat on the premises through radiation and convection of the heat-transfer medium thereto connected.
38. "Heated volume of a property" shall comprehend the volume of all premises owned and/or used by the subscriber and the relevant appertaining portions of the common parts of the building, intended to be heated according to the design.
39. "Heated volume of common parts" shall be the sum total of the volumes of premises constituting common parts in a condominium project buildings with heating units projected according to the design.
40. "Balancing energy market" shall be organized trade in electricity and natural gas for the purposes of maintaining the balance between generation and consumption in the electric power grid and, respectively, between natural gas import and consumption.
41. (Supplemented, SG No. 74/2006) "Site energy works" shall be buildings and the energy works permanently affixed thereto or to a lot, excluding the line parts thereof, intended for performance of the activities comprehended in the generation, transmission and distribution of electricity, heat and natural gas, as well as energy resource extraction.
41a. (New, SG No. 74/2006, effective 1.07.2007) "Network user" shall be any natural or legal person, providing electricity to the transmission and/or distribution networks or supplied thereby.
42. (Amended, SG No. 74/2006) "Consumer of energy or natural gas for household uses" shall be a natural person who is owner or user of a property and who consumes electricity or heat with hot water or steam as a heat- transfer medium for heating, air conditioning and hot water supply, or natural gas, for the household thereof.
43. (Amended and supplemented, SG No. 74/2006) "Consumer of energy or natural gas for business uses" shall be a natural or legal person, who or which purchases electricity or heat with hot water or steam as a heat-transfer medium for heating, air conditioning, hot water supply, and technical needs, or natural gas for business purposes, as well as persons financed by the state budget or a municipal budget.
44. (Amended, SG No. 74/2006) "Electricity, heat or natural gas, oil and oil product transmission" shall be the transport of electricity, heat or natural gas, oil or oil products through the transmission network or pipelines.
45. "Connecting gas pipeline" shall be a totality of gas pipelines and the appurtenant facilities connecting the transmission network to a non- household consumer of natural gas.
46. (Amended, SG No. 74/2006) "Producer" shall be a person which generates electricity and/or heat.
47. "Direct electric power line" shall be an electric power line which directly connects a producer with a division or branch thereof or with a consumer.
48. "Availability" shall be the capability of a producer to provide available capacity over a particular period of time to deliver electricity.
Availability shall be measured in watts per hour and the derivative units.
49. "Distribution" shall be the transport of electricity or natural gas through the distribution networks.
50. "Heat distribution" shall be the transport of heat through the systems for household hot water supply, heating, air conditioning and other such of consumers.
51.(Amended, SG No. 74/2006) "Certificate of origin of electricity from combined generation of heat and electricity" shall be an official non transferable document certifying a producer, the quantity of co generated electricity, stating the period of generation, the electricity generation plant, the output of the said plant and other data and parameters specified in the ordinance referred to in Article 159 (3) herein.
52. (Amended, SG No. 74/2006, repealed, SG No. 49/2007).
53. "Settlement" shall be a system applied by the electric power grid operator for individual calculation of deviations of the electricity as actually consumed or generated from the contracted quantities for a particular period using a method regulated in trading rules stipulated by an ordinance.
53a. (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union amended, amended, SG No. 55/2007) "System services" shall be all services, provided by the network operator, which are necessary for the reliable operation of the electricity power grid and for the viability of the market, including planning, administration, and management of the reliable operation of network users, settlement of the liabilities of the market participants, balanced delivery schedules.
54. (Amended, SG No. 18/2005, repealed, SG No. 74/2006).
54a. (New, SG No. 74/2006) "Special balancing group" shall be any group comprised of licensed companies under Article 39, Paragraph 1, Items 2, 3, 7, 8 and 10, and producers selling at Commission-regulated prices and/or on long-term agreements, to which special balancing conditions apply according to the rules under Article 91, Paragraph 2.
55. "Auxiliary networks" shall be the management, control, safety, communication and information networks required for the efficient functioning of the transmission and distribution networks.
56. "Medium-term forecast energy balances" shall be forecast energy balances covering a period of three to five years.
57. "Heating share distribution devices for heat consumption" shall be devices installed downstream from the heat commercial metering devices.
58. "Commercial metering devices" shall be technical metering devices which possess metrological characteristics and are intended to be used for metering, whether independently or connected to one or more technical devices, and which are used upon sale of electricity, heat or natural gas.
59. "Length of seniority in the energy sector" shall be the length of employment and/or civil-service seniority acquired in a managerial or expert position in the state administration of state bodies for management of the energy sector, in commercial corporations whereof the objects are subject to licensing under this Act or to award of concession under the Subsurface Resources Act, as well as in research institutions or commercial corporations servicing such activities.
59a. (New, SG No. 18/2005) "Experience in the sphere of water supply and sewerage" shall be a length of civil-service or employment seniority acquired in a managerial or expert position at state or municipal bodies for management of water-supply and sewerage activities, at higher schools, at research institutions, or at commercial corporations whereof the objects are subject to regulation under the Water-Supply and Sewerage Services Regulation Act.
59b. (New, SG No. 74/2006) "Standard balancing group" shall be group of commercial participants under Article 100, Paragraph 1, executing transactions in electricity at freely negotiated prices, to which the general conditions on balancing apply according to the rules under Article 91, Paragraph 2.
60. "Level of reliability of the electric power grid" shall be the probability, determined in percentage terms by the Minister of Energy and Energy Recourses, of balancing consumption and generation of electricity in case of occurrence of a shortage in the system.
61. (Amended, SG No. 74/2006) "Cold reserve" shall be a reserve, necessary to ensure the required level of adequacy, which the electric power grid operator purchases in the form of availability of generating units that are not planned to operate during a particular period of time and which the operator activates in the event of a shortage.
62. "Natural gas storage" shall be an activity of injection of natural gas under pressure into natural gas storage facilities and the extraction of the said gas back to the gas transmission network, excluding the delivery of natural gas.
63. "Technical capabilities" shall be the overall technical and operational condition of the energy work in accordance with the regulatory requirements for uninterrupted, secure, environmentally sound and safe operation of the facilities whereby the licensed activity is to be performed.
64. "Technological costs" shall be the costs of electricity, heat and natural gas which are imputed to the technological process of the generation, transmission, distribution and storage thereof.
65. "Heat transmission network" shall be a system of heating mains and technological facilities located between the property boundary of the heat transmission company with the source of heat and/or the consumers, serving for transmission of heat from the source of heat to the consumers.
66. (Amended, SG No. 74/2006) "Transit transmissions" shall be the transmission of energy or natural gas, oil or oil products across the borders of a particular country provided that such energy or natural gas, oil or oil products have not been generated and will not be consumer within the territory of the said country.
66a. (New, SG No. 55/2007) "Pulling power electricity" shall be the electricity consumed from the contact network of the National Railroad Infrastructure Company by the electricity-driven pulling power rolling stock - electricity-driven locomotives and electricity-driven trains owned by the licensed railroad carriers.
67. "Financial capability" shall be the overall financial and economic condition of the applicant with a view to performing the licensed activity.
68. "Storage facility" shall be a facility which is used for storage of natural gas and which is owned and/or operated by a natural gas company licensed for storage.
69. "Human resources" shall be available to an applicant which has at its disposal the minimum managerial and shop-floor personnel possessing the appropriate level of education and professional qualifications enabling the said applicant to perform the licensed activity.
70. "Plant" shall be a totality of technologically connected facilities, installations and auxiliary entities for generation of electricity, heat, and/or for combined generation of heat and electricity.

TRANSITIONAL AND FINAL PROVISIONS
§ 2. This Act shall supersede the Energy and Energy Efficiency Act (promulgated in the State Gazette No. 64 of 1999; amended in No. 1 of 2000, No. 108 of 2001, No. 63 of 2002 and No. 9 of 2003), with the exception of Chapter Thirteen thereof.
§ 3. (1) All commercial metering devices, which are owned by consumers upon the entry of this Act into force, shall be purchased by the energy companies at the market value of the said devices within three years after the entry of this Act into force.
(2) The obligation of energy companies to purchase the commercial metering devices referred to in Paragraph (1) shall be waived where the said companies install their own devices replacing the existing devices within the time limits provided for the purchase.
§ 4. (1) The energy facilities and installations, constituting elements of the relevant transmission or distribution network which, upon the entry of this Act into force, should be owned by the energy companies but are actually owned by third parties, shall be purchased by the transmission company or by the respective distribution company depending on the appurtenance of the work to the networks within eight years after the entry of this Act into force.
(2) The transmission company or, respectively, the distribution company, shall not be obligated to purchase any constructed fixtures and/or electric power lines owned by consumers connected to the transmission network or, respectively, to the distribution network whereto the said consumers have actually connected themselves without a contract for connection of new consumers.
(3) The works referred to in Paragraph (1) shall be purchased at market value.
In case the parties fail to reach agreement on the value of the said works, the said parties shall commission an independent licensed appraiser to conduct valuation of the said works.
The value of the work as determined by the appraiser shall be the price of the purchase transaction.
Should no agreement on the designation of an appraiser be reached within 60 days after receipt of a notice of such designation from the other party, the energy company and/or the owner of the works shall have the right to approach the Chairperson of the Commission with a request to designate an independent appraiser.
The appraiser designated according to this procedure shall be mandatory to the parties. The costs of the valuation shall be shared equally between the parties.
(4) The energy companies and the owners referred to in Paragraph (1) may not refuse, without good reason, to purchase or, respectively, to sell the energy works.
(5) The obligation of the energy companies to purchase the energy works referred to in Paragraph (1) shall be waived where the said companies construct their own works replacing the existing works within the time limits provided for the purchase.
(6) (Amended, SG No. 18/2004) In case of a refusal without good reason on the part of the owners to sell energy facilities and installations constituting elements of the transmission system and/or of the distribution networks, the said facilities and installations shall be condemned according to the procedure established by Article 63 herein together with the adjoining grounds.
(7) The energy works referred to in Paragraph (1), which constitute private state or municipal property at the date of entry of this Act into force, and which have been constructed on resources from the state budget or a municipal budget, shall be transferred onerously to the energy companies within eight years after the entry of this Act into force.
(8) Energy companies shall be obligated to transfer gratuitously any outdoor lighting facilities for streets, squares, parks, gardens and other corporeal immovables constituting public municipal property, which are incorporated into the assets of the said companies, to the relevant municipalities within two years after the entry of this Act into force.
(9) Upon restitution of any corporeal immovables constituting former state property, should any energy works incorporated into the tangible fixed assets of an energy company be construction within any such immovables, the owners of the said immovables shall have no right to demand the relocation of the said works, to deprive other consumers of energy supply, and to obstruct the operation of the energy companies.
(10) The owners of any corporeal immovables wherein energy works are constructed shall have the right to perform construction or other activities in the said immovables in compliance with the regulatory requirements for safe operation of energy works and after consultation with the energy company.
(11) Upon privatization of any items of property where within any energy works are constructed, the said works shall be excluded from the subject of the transaction if more than one consumer is supplied with energy or natural gas through the said works. Such works shall be transferred to the relevant energy company according to the procedure established by the foregoing paragraphs.
§ 5. The members of the State Energy Regulatory Commission, including the Chairperson and the Deputy Chairperson, shall complete the terms of office for which they were appointed under the Energy and Energy Efficiency Act as superseded.
§ 6. (Repealed, SG No. 74/2006) .
§ 7. The provision of Item 14 of Article 4 (2) herein shall apply until the 31st day of December 2005.
§ 8. (Amended and supplemented, SG No. 74/2006) The non-recoverable costs incurred by energy companies under Article 34 herein shall be compensable according to the procedure under Article 21, Paragraph 1, Item 13.
§ 9. (Repealed, SG No. 74/2006) .
§ 10. (Repealed, SG No. 74/2006) .
§ 11. (Repealed, SG No. 74/2006) .
§ 12. (1) Any licences and authorizations issued in pursuance of the Energy and Energy Efficiency Act as superseded shall remain in effect insofar they do not conflict with this Act. The requirements for self- contained area under Article 43 (3) to (5) herein shall not apply to any such licences and authorizations.
(2) The holders of any authorizations for construction of energy works under Article 37 (1) of the Energy and Energy Efficiency Act as superseded shall be obligated to submit an application to the Commission for issuance of a licence under Article 39 (3) herein within six months after the entry into force of the ordinance referred to in Article 60 herein.
(3) Any licences issued, which conflict with this Act or are incomplete, shall be re-issued to the same licensees for the remainder of the term of validity of the effective licences or shall be supplemented at the discretion of the Commission. Any licensees whereof the licences are subject to re-issuance or supplementation shall be obligated to submit an application to the Commission within six months after the entry into force of the ordinance referred to in Article 60 herein. No fees shall be due for the proceedings of re-issuance or supplementation of any such licences.
(4) The evidence which was already furnished for the issuance of the initial licences will not have to be furnished for the re issuance or supplementation of any licences referred to in Paragraph (3), provided that no intervening new circumstances have occurred.
(5) Pending the issuance of a new licence under Paragraph (2), the licensees shall have the right to perform the licensed activities.
§ 13. Any proceedings for the issuance of authorizations or licences under the Energy and Energy Efficiency Act as superseded, which are pending upon the entry of this Act into force, shall be concluded according to the procedure and under the terms established by this Act.
§ 14. The inventory for construction of new natural gas transmission networks, issued in pursuance of Item 7 of Article 4 of the Energy and Energy Efficiency Act as superseded, shall remain in effect even after the adoption of this Act, and any pending tendering procedures for selection of an investor for construction of new natural gas transmission networks shall be completed according to the hitherto effective procedure.
§ 15. (1) (Amended, SG No. 74/2006) The activities associated with electric power grid management and organizing of an electricity market may be separated in legal and organizational terms from the rest of the activities of the National Electric Company EAD not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. National Electric Company EAD shall submit applications to the Commission to be allowed to transform and/or execute transactions for the disposal of property used to perform its licensed activity, and for the issuance of respective licences.
(2) A licence for performance of the activity of public provider of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the functions of a public provider of electricity, as arising from this Act.
(3) A licence for transmission of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the activities comprehended in the transmission of electricity, as arising from this Act.
(4) (Amended, SG No. 74/2006) A licence for the activities of electric power grid management and organizing an electricity market shall be issued to the electric power grid operator - legal person, after its creation by the National Electric Company EAD. The Commission shall issue such a licence proprio motu, after evidence of the transformation under Paragraph 1 is furnished.
(5) (Repealed, SG No. 74/2006) .
§ 16. (1) Any contracts for long term purchase of availability and electricity at fixed parameters and the associated guarantees, concluded by the National Electric Company EAD before the entry of this Act into force, shall continue in effect for the time period for which they were concluded.
(2) (Amended, SG No. 74/2006) The public provider shall be a party to the contracts referred to in Paragraph (1) after the corporate transformation of the National Electric Company EAD under § 15, Paragraph 1.
§ 17. (Amended, SG No. 74/2006) (1) The activities associated with distribution of electricity and operational management of the distribution networks may be separated in legal and organizational terms from electricity supply and the other activities of the electricity distribution companies until the 31st day of December 2006 but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Electricity distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, as well as for the issuance and/or amendment, and/or termination of respective licences.
(2) Licences for the activity of public supplier of electricity shall be issued to the electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the relevant licence, the electricity distribution companies shall perform the functions of public suppliers of electricity for the relevant areas, as arising from this Act.
(3) Licences for electricity distribution with the relevant areas shall be issued to the existing electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the said licences, the electricity distribution companies shall perform the functions of electricity distribution within the relevant areas, as arising from this Act.
(4) Depending on the type of corporate transformation referred to in Paragraph (1) and the activities carried out by the transformed companies after the transformation, the electricity distribution and electricity supply licences of existing electricity distribution companies and their successors shall be amended and/or terminated, respectively, or new licences shall be issued. For the newly issued or the amended licenses, the transformed companies shall not pay initial licensing fees under Article 29, Paragraph 3, Item 1.
(5) After their transformation under Paragraph 1, the electricity distribution companies shall inherit by subrogation all rights and obligations, related to electricity distribution at the self-contained area, defined by the electricity distribution licence, including any rights and obligations arising prior to the transformation, related to respective price regulation, while the public suppliers shall inherit by subrogation all rights and obligations, related to electricity supply at the self-contained area, defined by the public electricity supply licence, including any rights and obligations arising prior to the transformation, related to respective price regulation.
§ 18. (1) Until the corporate transformation of the National Electric Company EAD according to § 15 herein, and, respectively, of the electricity distribution companies according to § 17 herein, the provisions of Article 104 (1) herein shall apply only to the quantities of electricity traded at freely negotiated prices.
(2) The provisions of Article 104 (2) herein shall apply to the public provider, as transformed within the meaning given by § 15 herein, and the public suppliers and distribution companies, as transformed within the meaning given by § 17 herein.
§ 19. (1) In the cases where a consumer fails to install a hot water meter in a corporeal immovable constituting private property, the heat for water heating shall be calculated according to the rates for water consumption as stipulated in the ordinance referred to in Article 125 (3) herein.
(2) In the cases where a residential property is used or allocated to other persons for performance of economic activity, the owner or the holder of the real right of use shall be obligated to notify the heat transmission company within 30 days after commencement of the economic activity or after allocation of the property. Upon failure to fulfil this notification obligation, the owner or holder of the real right of use shall pay for the heat at a price for business uses with a 20 per cent surcharge for the delay. This provision shall be effective as long as different prices apply to heat for household and business uses.
(3) (Amended, SG No. 74/2006) If the heat transmission company finds it technically impracticable to apply the heat share distribution system in a condominium-project building, the distribution shall be performed by the heat transmission company under terms and according to a procedure established in the ordinance referred to in Article 125 (3) herein.
(4) (New, SG No. 74/2006) Consumers shall not install any additional insulation or blocking fittings to the heating unit inputs and outputs.
§ 20. Until the 1st day of January 2010, the quantity of electricity required to ensure the operational reliability of the principal facilities at the combined heat and power plants existing upon the entry of this Act into force, generated in excess of the quantity of co-generated electricity, shall mandatorily be purchased by the public provider and/or by the public suppliers at negotiated prices.
§ 21. Until the 1st day of January 2010, the public provider and/or the public suppliers shall be obligated to purchase the entire quantity of electricity registered by a certificate of origin from combined generation, generated by the combined heat and power plants existing upon the entry of this Act into force, without high efficiency parameters achieved, at preferential prices, according to the relevant ordinance referred to in Article 36 (2) herein, with the exception of the quantities which the producer consumes for its own uses or for which it has concluded contracts according to the procedure established by Section VII of Chapter Nine herein, or with which it participates in the balancing market. The provisions of Article 163 herein shall apply to any plants which have achieved a high efficiency parameter.
§ 22. (1) (Amended, SG No. 74/2006) Bulgargaz EAD's activities associated with natural gas transmission, shall be separated in legal and organizational terms from the activities, by December 31, 2006, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Bulgargaz EAD shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.
(2) A licence for performance of the activity of public provider of natural gas shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the functions of public provider of natural gas, as arising from this Act.
(3) A licence for natural gas transmission and transit transmission shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas transmission, as arising from this Act.
(4) A licence for natural gas storage shall be issued to Bulgargaz EAD, pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas storage, as arising from this Act.
(5) (Repealed, SG No. 74/2006) .
(6) The prohibition referred to in Article 44 (2) herein shall apply after the date of the corporate transformation referred to in Paragraph (1).
(7) The existing consumers, within the meaning given by Items 8 and 9 of Article 175 herein, of the transmission upon the entry of this Act into force shall be considered directly connected consumers.
(8) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of public natural gas supply, issued under Paragraph 2, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas supply agreements executed by Bulgargaz EAD prior to the said licence termination date.
(9) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of natural gas transit transmission, issued under Paragraph 3, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas transit transmission agreements executed by Bulgargaz EAD prior to the said licence termination date.
§ 22a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) When all the following conditions are present:
1. the Republic of Bulgaria is not directly connected to the gas transport network to another European Union member country and
2. the market share of the principal gas supplier or any related persons thereto as defined under the Commerce Act is not exceeding 75 percent, all interested persons may submit a request to the commission for a temporarily relief from application of Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2 provisions.
(2) The Commission shall take decision on the request under Paragraph 1 within one month and shall immediately notify the European Commission on any effective decision on granting temporary relief.
§ 23. (1) (Supplemented, SG No. 74/2006) The activities associated with natural gas distribution shall be separated in legal and organizational terms from natural gas supply to end consumers and from the other activities of the natural gas distribution companies when not fewer than 100,000 final consumers of natural gas are connected to the relevant distribution network. Gas distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.
(2) Licences for performance of the activity of public supplier of natural gas shall be issued to the natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, the natural gas distribution companies shall perform the functions of public suppliers of natural gas, as arising from this Act, for the relevant areas.
(3) Licences for natural gas distribution within the relevant areas shall be issued to the existing natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licences, the natural gas distribution companies shall perform the activities comprehended in natural gas transmission, as arising from this Act, within the relevant areas.
(4) (Repealed, SG No. 74/2006) .
§ 24. (Repealed, SG No. 74/2006).
§ 25. (Amended, SG No. 74/2006) In cases, when assets of energy companies include property of right-holding persons under the Indemnification of Nationalized Property Owners Act or under Article 18 of the repealed State and Municipal Company Transformation and Privatisation Act (prom., SG No. 38/1992; amended, No. 51/1994, No. 45, 57, and 109/1995, No. 42, 45, 68, and 85/1996; corr., No. 86/1996; amended, No. 55, 61, 89, 98, and 122/1997, No. 39/1998; corr., No. 41/1998; amended, No. 70/1998, No. 12/1999, No. 47/1999 - Constitutional Court Decision No. 8/1999; amended, No. 56, 84, and 96/1999, No. 20, 99, and 108/2000, No. 42/2001; taken out., No. 28/2002), the latter shall be indemnified only by compensatory notes under the procedure of the Indemnification of Nationalized Property Owners Act.
§ 26. (1) All servitude rights arising by virtue of the Energy and Energy Efficiency Act as superseded in favour of energy companies in respect of any energy works existing upon the entry of this Act into force shall continue in effect.
(2) The size, location and special regime for exercise of any servitude referred to in Paragraph (1) shall be determined according to the procedure and in the manner provided for in the ordinance referred to in Article 64 (9) herein.
(3) Any servitude rights referred to in Paragraph (1) shall be recorded in the recording office and in the property register according to the location of the servant estate at the request of the relevant energy company which owns the energy work.
§ 27. The Spatial Development Act (promulgated in the State Gazette No. 1 of 2001; amended in Nos. 41 and 111 of 2001, No. 43 of 2002, Nos. 20 and 65 of 2003) shall be amended and supplemented as follows:
1. In Article 73 (1), the words "the utility company or shared between the said company and" in the second sentence shall be deleted.
2. In Article 182 (2), after the number 4 at the end of the first sentence, there shall be added "or a servitude has been established under Article 64 and § 26 of the Transitional and Final Provisions of the Energy Act";
3. In Item 31 of § 5, after the words "electricity supply" there shall be added "heat supply".
§ 28. In Article 15 of the Protection of Competition Act (promulgated in the State Gazette No. 52 of 1998; (modified by) Constitutional Court Judgment No. 22 of 1998, (promulgated in) No. 112 of 1998; amended in No. 81 of 1999, No. 28 of 2002, No. 9 of 2003), Paragraph (2) shall be amended to read as follows:
"(2) Alignment of general conditions shall be admissible only where authorized by the Commission, except in cases where the said general conditions have been approved by a competent authority exercising regulation and control. Any such authorization shall be granted within two months after the submission of a request by the companies referred to in Paragraph (1)."
§ 29. The Act Restricting Administrative Regulation and Administrative Control over Economic Activity (promulgated in the State Gazette No. 55 of 2003; corrected in No. 59 of 2003) shall be amended and supplemented as follows:
1. In Article 13:
(a) the existing text shall be redesignated to become Paragraph (1);
(b) there shall be added the following new paragraph:
"(2) Paragraph (1) shall only apply where no special law established another procedure on the grounds of exclusive rights."
2. Item 28 of the Annex to Item Article 9 (1) shall be amended to read as follows:
"28. Activities in the energy sector, as regulated in a special law."
§ 30. The Mandatory Stocks of Crude Oil and Petroleum Products Act (promulgated in the State Gazette No. 9 of 2003) shall be amended as follows:
1. Article 3 (2) shall be amended to read as follows
"(2) The stocks of petroleum products, which are created and maintained by energy companies according to the procedure established by Article 85 (1) and Article 128 of the Energy Act, shall be assimilated to the total quantity of stocks under this Act."
2. Article 4 (4) shall be amended to read as follows:
"(4) Annually, the persons obligated under Article 85 (1) and Article 128 of the Energy Act shall prepare information on the stocks of petroleum products thereof for the current calendar year and shall submit the said information to the State Agency of Contingency Reserves and Wartime Stockage on or before the 25th day of February."
3. Article 24 (3) shall be amended to read as follows
"(3) The persons obligated under Article 85 (1) and Article 128 of the Energy Act shall notify the Chairperson of the Agency of each case of use of the stocks of petroleum products and the time limits for replenishment of such stocks. Any such notification shall be submitted in writing or electronically not later than the working day next succeeding the day when the stocks were drawn from."
§ 31. In Article 47 of the Water Act (promulgated in the State Gazette No. 67 of 1999; amended in No. 81 of 2000, Nos. 34, 41 and 108 of 2001, Nos. 47, 74 and 91 of 2002, Nos. 42, 69 and 84 of 2003), there shall be added the following new paragraph:
"(5) A concession compensation, fixed according to a methodology adopted by the Minister of Environment and Water and the Minister of Energy and Energy Resources, shall be paid for production of geothermal energy from mineral waters constituting exclusive state property, where the said waters are used only as a heat-transfer medium and are returned to the respective occurrence."
§ 32. The Forests Act (promulgated in the State Gazette No. 125 of 1997; amended in Nos. 79 and 133 of 1998, No. 26 of 1999, Nos. 29 and 78 of 2000, Nos. 77, 79 and 99 of 2002, No. 16 of 2003) shall be amended and supplemented as follows:
1. In Item 1 of Article 16 (5), the words "overhead electric power lines" shall be deleted.
2. The following new article shall be inserted:
"Article 16b. (1) The provisions of Chapter Five of the Energy Act shall apply to any servitudes around overhead and underground electric power lines, heating mains and natural gas pipelines.
(2) Any servitudes around energy works located in forests or in forest stock land tracts shall be consulted by the energy companies with the National Forestry Board.
(3) The amount of compensation for any servitudes on forests or forest stock land tracts, referred to in Paragraph (2), shall be fixed according to the procedure established by the ordinance referred to in Article 19 herein."
§ 33. (Effective 10.06.2004) In Article 32 of the Technical Requirements for Products Act (promulgated in the State Gazette No. 86 of 1999; amended in Nos. 63 and 93 of 2002, No. 18 of 2003), after the words "acetylene equipment" there shall be added "oil pipelines and petroleum product pipelines".
§ 34. (1) The statutory instruments of secondary legislation on the application of this Act shall be adopted within six months after the entry of the said Act into force.
(2) Pending the issuance of the statutory instruments of secondary legislation as provided for under this Act, the statutory instruments of secondary legislation issued for application of the Energy and Energy Efficiency Act as superseded shall be applied insofar as they do not conflict with this Act.
§ 35. The provision of § 33 herein shall enter into force six months after the promulgation of this Act in the State Gazette.
This Act was adopted by the 39 National Assembly on 26 November 2003 and the Official Seal of the National Assembly has been affixed thereto.

TRANSITIONAL AND FINAL PROVISIONS
of the Administrative Procedure Code
(SG, No. 30/2006, effective 12.07.2006)
§ 47. Everywhere in the Energy Act (Promulgated, SG No. 107/2003, amended, SG No. 18/2004, amended and supplemented, SG No. 18/2005, amended, SG No. 95/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".

TRANSITIONAL AND FINAL PROVISIONS
to the Energy Act Amendment Act
(SG No. 74/2006, effective 8.09.2006, amended, SG No. 49/2007,
SG No. 55/2007, effective 6.07.2007)
§ 125. Throughout the Act:
1. All phrases "Minister of Energy and Energy Resources" and "Ministry of Energy and Energy Resources" shall be replaced by the phrases "Minister of Economy and Energy" and "Ministry of Economy and Energy", respectively.
2. The phrase "act whereby Republic of Bulgaria is recognised as full member of the European Union" shall be replaced by the phrase "Treaty concerning the Accession of the Republic of Bulgaria to the European Union".
§ 126. (Effective 1.07.2007) (1) The public provider shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right.
(2) End suppliers shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right.
§ 127. (Repealed, SG No. 49/2007).
§ 128. (1) The mandatory purchase under Article 162 of electricity produced using high-efficiency combined heat and electricity generation at preferential prices shall be applied for a term of 8 years:
1. starting on the date this Act becomes effective - for all existing electricity producers using high-efficiency combined heat and electricity generation;
2. starting on electricity production start, but not later than December 31, 2011 - for all other electricity producers using high-efficiency combined heat and electricity generation;
(2) The preferential prices for the purchase of electricity produced using high-efficiency combined heat and electricity generation for the period until December 31, 2019, shall be set forth according to the respective ordinance under Article 36, Paragraph 3.
(3) The Minister of Economy and Energy shall, by December 31, 2011, prepare and submit to the Council of Ministers for adoption a draft law introducing market mechanism for promotion of electricity production using a combined method, which may not be applied to electricity producers under Paragraph 1.
§ 129. (1) Licences for the activity of electricity supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public electricity suppliers by July 1, 2008.
(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public electricity suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public electricity supply licences held by them, as far as these are not contradictory to the Act.
(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public electricity supply licences.
§ 130. (1) Licences for the activity of natural gas supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public natural gas suppliers by July 1, 2008.
(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public natural gas suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public natural gas supply licences held by them, as far as these are not contradictory to the Act.
(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public natural gas supply licences.
§ 131. Merchants, who, at the date this Act becomes effective, perform the activity of heat share distribution in condominium-project buildings, shall submit an application for registration under Article 139a, Paragraph 3 within three months after this Act becomes effective.
§ 132. The § 27 provision, related to the amendment of Article 49, Paragraph 3 and Paragraph 4, shall also apply to any unfinished proceedings existing at the date this Act becomes effective, created under Article 46, Paragraph 2, which have no effective Commission decision on designating a licence holder.
§ 133. (1) The § 55 provision, related to the amendment of Article 102, shall apply to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.
(2) The effective § 55 shall restrict, respectively, the public provider's exclusive right on the import and export of electricity under Article 93, Paragraph 2.
(3) The provision in § 55 shall apply on the date this Act becomes effective to electricity producers, having:
1. a licence under Article 39, Paragraph 3 to build new electricity generation energy works;
2. a permit for expansion under Article 35, Paragraph 1, Item 1 of the repealed Energy and Energy Efficiency Act (prom., SG, No. 64/1999; amended, No. 1/2000, No. 108/2001, No. 63/2002, No. 9/2003; repealed, No. 107/2003 and No. 18/2004)
§ 134. The provision in § 105, related to creation of Article 176a shall become effective to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.
§ 135. Until the provision of § 12, Item 6 on the repealing of Article 21, Paragraph 1, Item 17 becomes effective, the Commission shall determine the availability, based on which any producer may execute transactions with eligible consumers, electricity merchants, and other producers according to the rules under Article 91, Paragraph 2, or take part in an organised market.
§ 136. Until the provision of § 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 3 becomes effective, only one public electricity supply licence shall be issued.
§ 137. Until the provision of § 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 5 becomes effective, only one public natural gas supply licence shall be issued.
§ 138. Until the provision of § 50, Item 1, "a" - in the part concerning repealing of Article 97, Paragraph 1, Item 4 - becomes effective, electricity transactions shall be executed at Commission-regulated prices between the public provider and all transmission network connected consumers, who have not selected another supplier.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
§ 140. Any statutory acts related to the application of the Energy Act shall be adopted or brought in accordance with this Act within 6 months after this Act becomes effective.
§ 141. This Act shall become effective on the date of its promulgation in the State Gazette, except the provisions in:
1. § 3, Item 2, "f", related to Article 4, Paragraph 2, Item 18b and Item 18c, § 12, Item 8, related to Article 21, Paragraph 1, Item 19a and Item 19b, § 23, Item 2; § 26, § 28, § 103, related to Article 172a and Article 172c, § 104, Item 2, § 106, Item 1, § 107, Item 1, § 113, § 121, § 122, § 124, Item 9, becoming effective on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union;
2. (Amended, SG No. 55/2007) § 12, Item 2, Item 6, and Item 7, § 16, Item 1, Item 4, Item 5, and Item 6, § 22, Item 1, "a" and "b", § 24, Item 2, Item 3, and Item 5, § 44, Item 2 and Item 5, § 46, § 48, § 50, Item 1, "a" and "c", § 51, § 53, § 56, § 74, § 97, Item 1, and Item 2, § 100, Item 1, § 103, related to the creation of Article 172b, § 104, Item 1 and Item 3, § 106, Item 2, § 107, Item 2, § 108, § 110, § 111, § 112, § 123, Item 13, and § 126, becoming effective July 1, 2007;
3. § 16, Item 4 and Item 7, § 22, Item 1, "c", § 23, Item 1, § 24, Item 1, § 25, Item 1, § 35, § 39, § 40, § 41, § 44, Item 4, § 50, Item 2, § 52, § 54, § 57, § 59, Item 1, § 61, § 62, § 64, § 65, § 66, § 71, § 72, § 76, Item 1, and § 123, Item 25, becoming effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.

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