We Margaret the Second, by the grace of God Queen of Denmark make known:Parliament has passed and we have given our Royal assent to the following Act:
1. (1) The objectives of this Act are to promote the most socio-economical and environmentally-friendly utilization of energy for heating buildings and supplying them with hot water and to reduce the dependence of the energy system on oil.(2) In agreement with the objectives mentioned in subsection (1), the supply of heating shall be organized with a view to promoting the highest possible degree of cogeneration of heat and power.
2. (1) For the purposes of this Act, collective heat-supply plant indicates any undertaking that operates the following plants with the object of generating energy for heating buildings and supplying them with hot water:
- plants for transmitting natural gas as well as plants for producing and transmitting other inflammable gasses;
- plants for transmitting heated water or steam from combined heat and power plants, waste-incineration plants, industrial enterprises, geothermal installations, etc.;
- district-heating supply plants, waste-incineration plants, etc., including combined heat and power plants with an electric capacity not greater than 25 MW;
- block-heating stations with a generating capacity exceeding 0.25 MW including combined heat and power centres with an electric capacity not greater than 25 MW.
(2) Excepting heat and power plants with an electric capacity not greater than 25 MW, the collective heat supply plants referred to in subsection (1) do not include undertakings regulated by the Act on the Supply of Natural Gas, the Act on the Exploitation of Danish Minerals or the Act on Electricity Supply.
(3) The Minister of Energy may provide regulations that the Act, wholly or in part, shall not apply to certain kinds of collective heat-supply systems.
3. (1) It is the duty of each district council, in cooperation with the supply companies and other involved parties, to prepare a plan for the supply of heat in the municipality.(2) The Minister of Energy may direct that specific premises shall form the basis of the planning of the municipal heat supply, including the basis for decisions made according to this Part of the Act.
(3) The Minister of Energy shall give an account of the more important measures which an planned in accordance with the Act to the Parliamentary Energy Committee.
4. (1) Each district council shall approve projects for establishing new collective heat-supply plants or for major alterations to existing plants.
(2) The Minister of Energy may direct that in special cases approval pursuant to subsection (1) shall be granted by the Minister of Energy or that the aforementioned approval presupposes the assent of the Minister of Energy.
(3) Producers and suppliers of piped energy as well as consumers shall upon request furnish the Minister of Energy and any relevant district council with any information deemed necessary for planning the supply of heat in the municipality.
5. After consultation with the municipal authorities, the Minister may provide regulations about planning pursuant to section 3, subsection (1), and to determine how cases shall be dealt with in accordance with section 4.
6. (1) Each district council shall ensure that any project for a collective heat supply plant explores the following possibilities in respect of each such plant:
- that it supplies a specified area with energy for heating purposes to a specified extent;
- that it is designed so as to ensure the most economical utilization of energy;
- that its operations are coordinated with those of other plants;
- that any plant over 1 MW be converted to combined heat and power production.
(2) In the event that a district council is responsible for preparing a project, the collective heat-supply plant shall furnish the district council with all necessary information .
(3) A district council may order an existing collective heat-supply plant to implement an authorized project before a certain deadline.
(4) In the event that a private collective heat-supply plant estimates that it will be unable to implement an order pursuant to subsection (3), cf. subsection (1) nos. 1-3, it may require that the district council take over the plant. If a collective heat-supply plant estimates that it will not be able to implement an order pursuant to subsection (3), cf. subsection (1) no.4 on the establishment of plants for the production of combined heat and power, it shall be obliged to invite another party to assume responsibility for establishing and operating the plant and, to the extent that it is necessary, make existing facilities, production plant etc, available. Where no amicable arrangement can be reached, the terms for a settlement will be stipulated by the valuation authorities referred to in the Public Roads Act, sections 57-62.
7. (1) If it is a precondition in an authorized project pursuant to section 4, the district council can require a collective heat-supply plant
- to organize its production facilities in such a way that specified types of energy can be used in the production and
- to use certain types of energy in the production to a specified extent.
(2) The Minister of Energy may provide regulations as to the application of the provision in subsection (1) .
8. A district council can order a collective heat-supply plant to prepare the projects mentioned in sections 6 and 7.
9. (1) Excepting the provisions of subsection (2) in accordance with the conditions laid down by the Minister of Energy pursuant to section 3, subsection (2), any existing production plant shall convert to heat and power supply and to the use of natural gas or similar environmentally-friendly fuel at a time to be determined by the Minister of Energy.
(2) Any project for the implementation of the regulations in subsection (1) shall be approved by 1 January 1996 at the latest.
10. (1) A district council shall follow developments in connections to the collective heat-supply system in its municipality. In this regard, an undertaking that supplies district heating and natural gas shall present to the district council every other year, and in the first instance no later than 1 January 1991, a report on connections to the plant. In the event that such an undertaking operates collective heat supplies in two or more municipalities, its report shall include developments in the rate of connections in each such individual municipality and in the total supply area.
(2) Each such report shall give a detailed account of the existing and expected connections to the plant and the initiatives which have been planned with a view to increasing the number of connections.
(3) As a basis for consideration by the district council, each such report shall be accompanied by project descriptions that illustrate the technical and economic premises for using the control instruments mentioned in sections 11-13.
11. (1) If it is presupposed in an authorized project for a collective heat-supply plant, at the latest when granting planning permission, the district council may direct that when new buildings are placed into use they shall be connected to the plant. The district council shall approve the conditions for the connection.
(2) The Minister of Energy can decide the rules for access to make decisions pursuant to subsection (1) after consultation with the municipal organizations.
(3) If a new building which must be connected to a collective heat-supply plant pursuant to subsection (1) cannot be connected within the time stipulated in the project because of delays in establishing the heat supply, the municipality and the plant are obliged to secure a temporary heat supply for the building at no extra cost to the users: the district council and the plant shall each pay half of these costs.
12. (1) If presupposed in an authorized project for a collective heat-supply plant, the district council may direct that existing buildings shall be connected to the plant within a certain time limit, i.e. with reference to the natural pace of replacement for existing heating plants. The district council shall approve the terms for the connections.
(2) After consultation with the municipal organizations, the Minister of Energy shall provide rules for making decisions pursuant to subsection (1).
(3) The Minister of Energy may provide that an owner of a property that shall be connected to a collective heat- supply plant in accordance with a decision pursuant to subsection (1), may be paid compensation of which the district council and the plant each pays half. The district council decides whether compensation is to be paid and how much. In the absence of an amicable arrangement the compensation shall be decided by the valuation authorities referred to in sections 57-62 of the Public Roads Act.
13. (1) A district council may require that the owner of a building that in accordance with sections 1. and 1.2 can be required to be connected to a collective hot supply- plant, pay a contribution to the plant if it is possible for that building to receive its supply of heat from the said plant.
(2) The Minister of Energy, after consultation with the municipal organizations, provides rules as to the contribution to be paid pursuant to subsection (1).
14. (1) In the event that a district council deems that the implementation of the heat-supply planning so requires, the said district council may rule that a specified heating system may not be installed in a new building within a given geographical area.
(2) The Minister of Energy may require a district council to make a ruling in accordance with subsection (1) .
(3) After consultation with the municipal organizations. the Minister of Energy may provide regulations concerning exemptions from a decision made pursuant to subsection (1).
15. The Minister of Energy may provide regulations as to the communication or publication of decisions taken by the district council pursuant to sections 11-14 and also as to whether any such decision shall be registered under the entry in the Land Register of the property concerned .
16. (1) In the event that expropriation of property is essential to establish the pipelines and heat-supply equipment needed for an approved collective heat supply plant, and to establish facilities required for transmission and distribution of natural gas for purposes other than space heating, the following may be implemented:(2) When expropriation is made pursuant to subsection (1) (i), all rights in the property expropriated shall be annulled unless another decision is made in an individual case. When expropriation is made pursuant to subsection (1) (ii), rights in real property established by expropriation shall be respected by any person in whom a proprietary right in the said property is vested except where otherwise stipulated in each case.
- the proprietary rights in land, buildings and in fixed installations permanently attached to land or buildings and any accessories appurtenant to such land and buildings may be acquired.
- the owner's right of disposal of such real property may be permanently or temporarily restricted, or the right to disposal of real property for special purposes may be acquired;
- rights over real property may be permanently or temporarily acquired or annulled, or limitations can be made in these areas.
17. (1) A decision on expropriation pursuant to section 16 shall be taken by the district council.
(2) The provisions of sections 45, 47, 48 and 49 of the Public Roads Act shall apply when the expropriation is taking place.
(3) In the event that an expropriation for the purpose of a specific plant is to take place concurrently within the areas of two or more municipalities, the Minister of Energy may direct that the expropriation shall be performed in accordance with the provisions of the Expropriation of Real property (Procedures) Act.
18. (1) The valuation authorities referred to sections 57-63 of the Public Roads Act shall decide questions concerning compensation pursuant to section 17, subsection (1) of the present Act.
(2) With respect to the procedure for conducting cases before the valuation authorities and the determination of the amount and payment of compensation, the provisions of section 51, subsections (2) to (7), sections 52 to 56, sections 63 to 64, section 46, subsection (1), and section 67 of the Public Roads Act shall apply.
19. The Minister of Housing or the Minister of Justice may lay down regulations as to procedures for effecting such corrections of Title Numbers and registration of property, respectively, as are made necessary in consequence of expropriation under this Act.
20. (1) Collective heat-supply plants, combined heat and power plants with an electric capacity of more than 25 MW, industrial enterprises, geothermal installations etc. as well as enterprises which have been granted a license or a permit under the Natural Gas Supply Act to import, sell, transport or store natural gas may include in their prices for the supply of heated water, steam or gas to the domestic market, necessary expenses for fuel, wages and salaries, and other operating costs, administration and marketing, interest paid on loan capital and deficits previously incurred in connection with the establishment and major expansion of the supply systems. In addition they may include operational depreciation and, subject to the approval of the Gas and Heating Price committee referred to in section 21, allocations to re-investment funds and interest paid on contribution capital in accordance with regulations laid down by the Minister of Energy .(2) Different prices may be stipulated for individual consumers, groups of consumers and geographical areas.
(3) The price of natural gas in terms of heat value may not exceed the consumer price including government taxes of a corresponding quantity of heating oil. The Minister of Energy shall provide regulations specifying the method of calculation after having submitted them to the Parliamentary Energy Committee for approval.
(4) Any agreement on the sale of natural gas between an enterprise which has been granted a licence or permit under the Natural Gas Supply Act to import, sell, transport or store natural gas, and an enterprise that operates a plant for the transmission of natural gas, shall contain binding retail prices and consumer prices, including other conditions.
21. (1) Any price and any other condition for supplies to which the provisions of section 20 are applicable shall be notified to a committee appointed by the Minister of Energy (the Gas and Heat Pricing committee) in accordance with regulations laid down by that committee with a specification of the grounds on which any such price or condition was fixed..
(2) The Minister of Energy may direct that certain cases shall not be notified.
(3) The notified prices and conditions for the supply of heated water, steam or gas for heating buildings and supplying then with hot water shall be open to public access unless the Gas and Heat Pricing Committee permits that they may not be published.
(4) Any price or condition which is not duly notified in accordance with subsection (1) of this section shall be invalid.
(5) In the event that a price or other condition that is deemed unreasonable by the Committee or violates section 20 of this Act cannot be settled by negotiation, the Committee shall order that such a price or condition be changed.
(6) Where a price or other condition may be deemed to lead to an uneconomic use of energy contrary to the public interest, after negotiation as mentioned in subsection (5) of this section, the Committee may issue an order to have prices or conditions changed.
(7) Any price or other condition for the sale of natural gas supplied to a consumer who buys more than 300,000 m3 of natural gas per year shall not be affected by subsections (3), (5) and (6) of this section.
22. The Gas and Heat pricing committee shall comprise a chairman and thirteen other members appointed by the Minister of Energy. The Chairman and seven of the members shall be independent of supply interests and municipal interests and shall represent consumer interests and the necessary expertise. Of the remaining six members, one shall be appointed upon the recommendation of 'Danske Elvaerkers Forening' (The Association of Danish Electricity Works), one upon the recommendation of Dansk Fjernvarmeværkers Forening (The Association of Danish District Heating Works), one upon the recommendation of 'Dansk Naturgas A/S' (Danish Natural Gas Ltd.) one upon the joint recommendation of the natural gas distribution companies, one upon the recommendation of the National Association of Local Authorities in Denmark, and one upon the joint recommendation of the Municipalities of Copenhagen and Frederiksberg. (2) The secretarial work of the committee shall be discharged by the secretariat of the Competition Council. (3) The Minister of Energy shall determine the rules of procedure of the said committee.
23. (1) Any decision of the Committee shall be recorded in writing and shall contain information about the circumstances and points of view on the basis of which the decision was made.
(2) As regards the powers of the Committee to call for information etc., and with respect to complaints about decisions made by the Committee, the provisions of section 6 and Part 5 of the Act on Competition shall apply with the necessary deviations.
24. The Minister of Energy may lay down regulations as to the maintenance of collective heat-supply plants, supply pipelines etc.25. (1) The district council shall supervise the installation and operation of collective heat-supply plants.
(2) The Minister of Energy may lay down rules pertaining to supervision.
26. (1) Any decision made by a district council pursuant to parts 2, 3 and 5 of this Act may be appealed to the Minister of Energy, cf., however, section 6, subsection (4), and section 12, subsection (3).(2) Any decision of the district council may be appealed by an individual to whom the decision applies.
(3) The Minister of Energy may lay down rules to the effect that decisions made by a district council pursuant to parts 2 and 5 nay be appealed only on legal grounds.
27. The deadline for appealing shall be four weeks from the day on which the decision has been communicated to the party In question.
28. Where the Minister of Energy delegates his powers to make decisions according to the Act or according to rules laid down in the Act to an institution under the Ministry of Energy, the Minister of Energy can lay down rules about access to appeal decisions, including the rule that can be brought before another administrative authority.
29. The Minister of Energy may lay down rules or make decisions that apply to Dansk Naturgas A/S (Danish Natural Gas Ltd.) and other enterprises operating plants for the transmission of natural gas in the event that30. After consultation with the Minister of the Interior over proposed rules as to limiting borrowing by the regional natural gas companies and as to settling the companies' debts, and having submitted the said rules to the Parliamentary Energy Committee, the minister of Energy is authorized to promulgate such rules.
- an extension is to be made to the natural gas network and the obligation to supply natural gas including the plans of the companies in this regard, and
- the costs of any of the said companies are to be controlled.
31. Any sale of natural gas to any consumer buying more than 300,000 m3 per year shall be handled by the natural gas distribution companies according to uniform, nationwide guidelines agreed between the said companies and Dansk Naturgas A/S (Danish Natural Gas Ltd) and approved by the Minister of Energy. In the event that no such agreement is reached, the Minister of Energy shall lay down the guidelines. Where agreement about sales does not. exist between Dansk Naturqas A/S and one or more of the natural gas distribution companies, or where the Minister of Energy otherwise finds it necessary, within the framework of these guidelines the Minister of Energy may make a decision.
32. The enterprises referred to in section 29 shall upon request furnish the Minister of Energy with the information he may deem necessary for exercising his powers according to sections 29 to 31.
33. Any party that neglects to notify the Gas and Heating Price Committee in good time or to furnish information according to section 21, subsection (1), and section 23, subsection (2), or who disregards orders issued in pursuance of section 21, subsections 5 and 6, may be ordered by the Minister of Enargy, as a coercive measure , to pay daily or weekly fines. A distraint warrant nay be issued for this.34. Any party that
35. (1) The Act shall come into force on June 15, 1990.
- neglects to obtain a permit pursuant to section 4,
- disregards the conditions for a permit according to the law,
- neglects to follow an order or prohibition according to the law Including an order to rectify an unlawful state of affairs,
- furnishes incorrect or misleading information cf. section 21, subsection (1), and section 23, subsection (2) of this Act shall be liable to punishment of a fine. (2) In prescriptions issued under this Act, it may be laid down that any party that violates the provisions of the prescriptions is liable to punishment of a fine. (3) where the violations referred to in subsections (1) and (2) of this section are committed by a joint-stock company, a private company, a co-operative society or the like, the fine may be imposed on the company or society as such. Where the violation is committed by a municipality or a municipal community covered by section 60 of the Local Government Act, the fine may be imposed on the municipality or the municipal community.
(2) when the Act comes into force, the Heat Supply Act shall be annulled, cf. Consolidation Act no, 30 of June 29, 1983.
(3) until such time as the Minister of Energy shall decide otherwise, a district council may not approve a project that is at variance with the rules approved under the regional heat supply plans.
36. This Act shall not apply to the Faroe Islands or Greenland .