Law on Drinking Water Supply and Waste Water Management


Published: 0000-00-00

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OFFICIAL TRANSLATION
republic of lithuania
law on
drinking water supply and waste water MANAGEMENT
 
13 July 2006 No X-764 Vilnius
 
CHAPTER ONE
GENERAL PROVISIONS
 
Article 1. Purpose and Scope of the Law
1. This Law shall establish the principles of the state management and regulation of drinking water supply and waste water management and regulate legal relationships between water suppliers and subscribers (consumers). 
2. The purpose of the Law shall be to ensure uninterrupted functioning of the drinking water supply and waste water management sector as well as development thereof determined by public needs, creating conditions for natural and legal persons to, on acceptable terms, be supplied with suitable quality drinking water and receive good quality waste water management facilities.
3. The provisions of this Law shall apply to all persons supplying cold drinking water and providing waste water management facilities.
 
Article 2. Definitions
1. Subscriber means a natural or legal person also a representative office or subsidiary of a foreign legal person registered in the Republic of Lithuania who has entered into a water supply agreement with a water supplier regarding the purchase and sale of drinking water and/or provision of waste water management facilities or has connected his facilities for the use of drinking water, the necessary communications for the supply of drinking water and/or waste water management facilities to the drinking water supply and/or waste water management infrastructure that is operated by the water supplier.
2. Individual waste water disposal means the treatment and disposal of own waste water to the natural environment by means of the waste water management infrastructure managed by the right of ownership or on other lawful grounds.
3. Individual water abstraction means the collection of water from natural sources using facilities managed by the right of ownership or on other lawful grounds and the use thereof to satisfy own needs but not for sale.
4. Uninterrupted water supply and/or waste water management means drinking water supply and/or waste water management complying with the terms and conditions of a water supply agreement based on the amount, pressure, regularity and quality or only in accordance with the requirements of legal acts, where no written agreement has been concluded with the subscriber (consumer) but the subscriber’s (consumer’s) facilities for the use of drinking water, the necessary communications for the supply of drinking water and/or waste water disposal facilities have been connected to the drinking water supply and/or waste water management infrastructure that is operated by the water supplier.
5. Waste water means water used for household, economic or industrial purposes or surplus water (rainwater, surface water, drainage water, etc.) the holder whereof discharges, by means of the waste water management infrastructure, into the natural environment or into the waste water management infrastructure owned by other persons.
6. Waste water transfer limit means a point in the waste water management infrastructure specified in a water supply agreement in which the waste water released by the subscriber (consumer) is taken over by the water supplier and he assumes responsibility for its treatment.  If no written agreement has been concluded, the waste water transfer limit shall be considered the point where the waste water management infrastructure belonging to the water supplier by the right of ownership or managed or operated by him on other lawful grounds starts and to which the subscriber’s (consumer’s) waste water is discharged.
7. Waste water management means waste water collection, transportation, purification, measuring, analysis and discharge into the environment and treatment of sludge and other waste formed in the process of purification.
8. Waste water management infrastructure means a complex of structures, facilities and communications (piping systems, manholes, pumping stations, waste water management facilities and other facilities) intended for waste water management.
9. Provision of waste water management services means an economic and commercial activity comprising technical, organizational and economic measures intended for the treatment of subscribers’ (consumers’) waste water.
10. Regional water supplier means a public water supplier supplying water to more than half of the municipalities in a public water supply region.
11. Enterprises controlled by municipality (municipalities) mean municipal enterprises operating in accordance with the State and Municipal Enterprise Law, public limited liability companies and private limited liability companies, where a municipality or several municipalities own, by the right of ownership, such amount of shares that ensures a qualified majority, established under the law or instruments of incorporation, required to take a decision to re-organise the company.
12. Enterprises controlled by the State mean state enterprises operating in accordance with the State and Municipal Enterprise Law, public limited liability companies and private limited liability companies where the State owns, by the right of ownership, such amount of shares that ensures a qualified majority, established under the law or instruments of incorporation, required to take a decision to re-organise the company.
13. Water supplier means a legal person also a subsidiary of a foreign legal person registered in the Republic of Lithuania entitled to supply drinking water and/or provide waste water management facilities in accordance with the procedure established by this Law and other legal acts.
14. Water supply means an economic and commercial activity comprising technical, organizational and economic measures required to obtain, supply and sell drinking water to a subscriber (consumer).
15. Water supply infrastructure means a complex of structures, facilities and communications (water catchments, water improvement facilities, pumping stations, piping systems, manholes, meters and other facilities) intended for water abstraction, drinking water preparation, storage, transportation, supply and measuring.
16. Water supply and waste water management infrastructure development plan means a territorial planning document (special plan) prepared for the whole territory of a municipality that establishes the territories of public water supply as well as water supply and waste water management infrastructure development objectives.
17. Water supply agreement means an agreement between a water supplier and subscriber (consumer) regarding the purchase and sale of drinking water and/or provision of waste water management facilities. Under the agreement, the water supplier undertakes, in accordance with particular parameters and conditions, to supply drinking water complying with the requirements of legal acts and/or to provide waste water management facilities, the subscriber (consumer) undertakes to pay for the water supplied and/or waste water management facilities provided and to comply with the conditions of consumption of drinking water and discharge of waste water established in the agreement.
18. Water supply and consumption limit means a point in the water supply infrastructure specified in the drinking water supply agreement in which the supplier transfers drinking water complying with the safety and quality requirements to the subscriber (consumer).  If no written agreement has been concluded, the water supply and consumption limit shall be considered the point in which a water meter is or must be installed.
19. Consumer means a natural person (subscriber) that purchases water and/or waste water management facilities to satisfy his personal, family and household needs and not for commercial purposes.
20. Public water supplier means an enterprise controlled by the State or municipality (municipalities) that acquired, in accordance with the procedure laid down by this Law and other legal acts, the right and duty to carry out public water supply in the public water supply territories (public water supply regions) of a municipality (several municipalities). 
21. Public water supply means the supply of drinking water and/or provision of waste water management facilities under a public water supply agreement or, if no written agreement has been concluded, the supply of drinking water and/or provision of waste water management facilities where the subscriber’s (consumer’s) facilities for the use of drinking water, the necessary communications for the supply of drinking water and/or waste water disposal facilities have been connected to the drinking water supply and/or waste water management infrastructure that is operated by the water supplier.  This concept shall only be interpreted as defined in this paragraph when applying the norms of this Law and subordinate legal acts. 
22. Public water supply agreement means a water supply agreement that a public water supplier must conclude with all the persons, in accordance with the procedure established by this Law and other legal acts, regarding the purchase and sale of drinking water and/or provision of waste water management facilities. 
23. Public water supply regions mean territories formed in accordance with the procedure established by this Law that cover the territory of more than one municipality.  When organising the management of the water supply and waste water management sector and administering the State financial support for public water supply, based on the public water supply regions, the water supply and waste water management state regulation objectives laid down in Article 3 of this Law shall be implemented. 
24. Public water supply territories mean territories formed in accordance with the procedure established by this Law in which municipalities must organise (ensure) public water supply.
25. Elements of drinking water supply and waste water management infrastructure posing threat to human health and/or the environment mean elements of drinking water supply and waste water management infrastructure that, due to energy accumulated therein and ongoing processes, may pose a threat to human life, health, the environment or property and that require to be under the supervision of professionals with qualifications laid down in this Law and other legal acts.
 
CHAPTER TWO
REGULATING WATER SUPPLY AND WASTE WATER MANAGEMENT
 
Article 3. State Management and Regulation Objectives of Water Supply and Waste Water Management
The state management and regulation objectives of water supply and waste water management shall be as follows: 
1) to ensure that as many persons as possible could supply themselves with drinking water meeting public health protection requirements and to handle waste water in accordance with the environmental requirements;
2) to ensure that public water supply in the whole territory of the country is carried out in compliance with the set requirements;
3) to improve the efficiency of the public water supply sector and to carry out uninterrupted and long-term water supply and waste water management in the whole territory of the country;
4) to develop the drinking water supply and waste water management price regulation system that would ensure the optimal price for subscribers (consumers) and recovery of costs incurred by water suppliers necessary for the proper carrying out of public water supply as well as the implementation of the polluter pays principle;  
5) to ensure the protection of legitimate interests of subscribers (consumers) and water suppliers and to protect consumer rights.
 
Article 4. Water Supply and Waste Water Management Regulation Measures
The development of water supply and waste water management sector and water supply and waste water management activity regulation measures shall be as follows:
1) licensing of public water supply activity;
2) setting requirements for public water supply;
3) setting rules for the use and maintenance of the water supply and waste water management infrastructure;
4) setting qualification requirements for persons operating the water supply and waste water management infrastructure;
5) administering State financial support intended for the development of the water supply and waste water management infrastructure, with a view to implementing the water supply and waste water management state regulation objectives laid down in Article 3 of this Law;
6) controlling the safety and quality of the supplied drinking water and waste water management;
7) state regulation of prices for the drinking water supplied by public water suppliers and waste water management facilities provided;
8) setting the standard terms and conditions of public water supply agreements.
 
Article 5. Water Supply and Waste Water Management Regulation Institutions
Water supply and waste water management shall be regulated in accordance with the procedure laid down by this Law and other laws by:
1) the Government;
2) the Ministry of Environment;
3) the Ministry of Health;
4) the State Food and Veterinary Service under the Government of the Republic of Lithuania;
5) the National Control Commission for Prices and Energy;
6) municipal institutions;
7) the State Consumer Rights Protection Authority under the Ministry of Justice.
 
 
Article 6. Sphere of Competence of the Government in Water Supply and Waste Water Management Regulation
The Government shall:
1) form and implement the policy of the state regulation of drinking water supply and waste water management;
2) approve the Rules for Licensing of Public Water Supply;
3) approve the standard terms and conditions of public water supply agreements;
4) establish the procedure for organising tenders for the selection of public water suppliers;
5) establish public water supply regions;
6) establish the procedure for payment for the supplied drinking water and provided waste water management facilities;
7) establish the procedure for buying out drinking water supply and waste water management infrastructure facilities;
8) perform other functions laid down by this Law and other laws.
 
 
 
Article 7. Sphere of Competence of the Ministry of Environment in Water Supply and Waste Water Management Regulation
The Ministry of Environment shall:
1) in compliance with this Law and other laws, prepare and approve legal acts establishing the environmental requirements for drinking water abstraction and waste water management and control the implementation thereof;
2) in accordance with the procedure laid down by the Law on Territorial Planning, prepare and approve the rules for preparing water supply and waste water management infrastructure development plans;
3) establish a list of elements of drinking water supply and waste water management infrastructure posing a threat to human health and/or the environment, qualification requirements for persons operating the elements of the drinking water supply and waste water management infrastructure posing a threat to human health and/or the environment and the procedure for issuance of qualification certificates and documents attesting to the relevant qualification;
4) set the quality requirements for public water supply and waste water management facilities;
5) set the rules for the use and maintenance of the drinking water supply and waste water management infrastructure;
6) co-ordinate the allocation of financial support from the State budget, European Union support funds and other sources of financing for the development of the drinking water supply and waste water management sector; 
7) co-ordinate the activity of municipalities, while implementing the objectives of the state regulation of drinking water supply and waste water management;
8) perform other functions established by this Law and other laws or assigned by the Government.
 
Article 8. Sphere of Competence of the Ministry of Health in Water Supply and Waste Water Management Regulation
The Ministry of Health shall:
1) set the public health protection requirements for drinking water;
2) perform other functions established by the Law on Drinking Water and other laws or assigned by the Government.
 
Article 9. Sphere of Competence of the State Food and Veterinary Service under the Government of the Republic of Lithuania in Water Supply and Waste Water Management Regulation
The State Food and Veterinary Service under the Government of the Republic of Lithuania shall:
1) in accordance with the procedure laid down by the Law on Drinking Water, control the safety and quality of drinking water;
2) perform other functions established by the Law on Drinking Water and other laws or assigned by the Government.
 
Article 10. Sphere of Competence of the National Control Commission for Prices and Energy in Water Supply and Waste Water Management Regulation
The National Control Commission for Prices and Energy shall:
1) determine the methodology for fixing prices of the drinking water supplied by water suppliers and waste water management facilities and control the implementation thereof;
2) co-ordinate the prices of the drinking water supplied by water suppliers and waste water management facilities and control the implementation thereof;
3) have the right to, by its decision, unilaterally fix prices of drinking water and waste water management facilities to water supplier in the cases specified in paragraph 8 of Article 22 of this Law, indicating the period of validity of the decision;
4) in compliance with the Rules for Licensing of Public Water Supply Activity approved by the Government, issue public water supply licenses, register them, suspend their validity and revoke them, also control whether public water suppliers comply with the conditions of the licences;
5) set the amount of compensation to a public water supplier and the payment procedure thereof, where a subscriber terminates an agreement on his own initiative, except in cases where the agreement is terminated due to the fault of the public water supplier or the agreement is terminated by a consumer; 
6) determine the methodology for calculating the connection fee for new subscribers, except consumers, for connecting to the public drinking water supply and waste water management infrastructure;
7) in accordance with the preliminary out-of-court procedure for settlement of disputes, consider disputes arising between water suppliers and subscribers regarding the prices and tariffs of drinking water supply and waste water management;
8) perform other functions established by this Law and other laws.
 
Article 11. Sphere of Competence of the Municipalities in Water Supply and Waste Water Management Regulation
The municipal: 
1) institutions shall organise and co-ordinate the abstraction and supply of drinking water and provision of waste water management facilities in the territory of a municipality;
2) councils shall execute the rights and duties of the owners of the drinking water supply and waste water management infrastructure intended for public water supply or members of enterprises controlled by a municipality (municipalities) that own the infrastructure;
3) councils shall, in compliance with the methodology for fixing prices of drinking water and waste water management facilities established by the National Control Commission for Prices and Energy, set prices of the drinking water supplied by public water suppliers and waste water management facilities;
4) institutions shall set the connection fee for new subscribers, except consumers, for connecting to the public drinking water supply and waste water management infrastructure, based on the methodology approved by the National Control Commission for Prices and Energy;
5) councils shall approve development plans of the water supply and waste water management infrastructure in the territory of a municipality; 
6) institutions shall, while carrying out territorial planning procedures, ensure that drinking water supply and waste water management infrastructure facilities and protection zones thereof are set within communications corridors or shall secure the possibilities to exercise the right of easement, where it is necessary to maintain, replace and otherwise use the drinking water supply and waste water management infrastructure facilities;
7) councils shall, in general or special territorial planning documents, approve the boundaries of public water supply territories without violating the boundaries of the territory of the municipality;
8) institutions shall approve agreements related to the activity of a public water supplier in the territory of a municipality;
9) institutions shall perform other functions established by this Law and other laws.
 
 
Article 12. Sphere of Competence of the State Consumer Rights Protection Authority under the Ministry of Justice in Water Supply and Waste Water Management Regulation
The State Consumer Rights Protection Authority under the Ministry of Justice shall:
1) in accordance with the preliminary out-of-court procedure for settlement of disputes, consider consumer complaints relating to the application of unfair terms and conditions in contracts for the purchase and sale of drinking water and provision of waste water management facilities, water measuring, water supply accidents, termination, suspension or restriction of water supply and consumer billing;
2) within the sphere of its competence, participate in co-ordinating the drafts of laws and other legal acts and standard terms and conditions of a public water supply agreement. 
 
CHAPTER THREE
PLANNING AND ORGANISING WATER SUPPLY AND WASTE WATER MANAGEMENT
 
Article 13. Public Water Supply Territories
Public water supply territories shall be established in water supply and waste water management infrastructure development plans prepared in accordance with the procedure laid down in Article 14 of this Law. These territories shall consist of residential areas, parts thereof and individual residential buildings as well as other buildings, aiming to ensure that at least 95 per cent of the residents of each municipality are supplied with water supplied by a public water supplier and provided with waste water management facilities.  The public water supply territories shall include the following residential areas, parts thereof and individual residential buildings and other premises:
1) where at least 50 persons are supplied with drinking water;
2) where there is suitable for use drinking water supply and/or waste water management infrastructure owned by the State, municipality or an enterprise controlled by a municipality (municipalities);
3) where local residents, due to the shortage of water resources, environmental requirements, economic or other reasons, have no possibility to be supplied with or supply themselves with suitable quality drinking water by other means except for the public water supply.
 
Article 14. Water Supply and Waste Water Management Infrastructure Development Plans
1. The development of the drinking water supply and waste water management sector in the territory of a municipality shall be carried out in compliance with the water supply and waste water management infrastructure development plan. Water supply and waste water management infrastructure development plans shall be drawn up by municipalities, in compliance with the Law on Territorial Planning and rules for preparing water supply and waste water management infrastructure development plans approved by the Minister of Environment.
2. A water supply and waste water management infrastructure development plan shall specify the objectives of the development of water supply and waste water management infrastructure, ensuring the provision of safe to the public health drinking water to residents and other persons and water supply and waste water management facilities complying with the requirements laid down in subparagraph 4 of Article 7 of this Law.
3. A water supply and waste water management infrastructure development plan shall be reviewed and updated in accordance with the procedure established by the Law on Territorial Planning.
 
Article 15. Public Water Supply
1. Public water supply in the territory of a municipality shall be carried out by public water suppliers. 
2. A public water supplier shall have the exclusive right and duty to supply drinking water and provide waste water management facilities in all the public water supply territories of the municipality, except for the territories or parts thereof where it is possible to supply water and provide waste water management facilities in accordance with paragraphs 6 and 7 of this Article.  The public water supplier may not engage in any other activity unrelated to drinking water supply and waste water management and activity not provided for in the public water supply licence. 
3. A water supplier shall, in accordance with the procedure established by this Law, have the right to become a public water supplier in several municipalities within the territory of one region established in accordance with paragraph 3 of Article 16 of this Law.  The public water supplier operating in one or several municipalities shall also have the right to supply drinking water and provide waste water management facilities in the territories of other municipalities, where he is not a public water supplier, in accordance with the procedure laid down by this Law.  The water supplier, being a public water supplier in at least one municipality, shall supply drinking water and/or provide waste water management facilities under the same conditions to all subscribers (consumers) of the same category, irrespective of which municipality territory and/or public water supply territory they are located in.
4. The supply of drinking water and provision of waste water management facilities carried out by a public water supplier shall comply with the requirements for the public water supply laid down in subparagraph 4 of Article 7 of this Law.
5. In territories not assigned to any public water supply territories, a public water supplier and other water suppliers shall have equal rights.  Agreements that public water suppliers and other water suppliers conclude with subscribers (consumers) effective in these territories shall be drawn up in accordance with the standard terms and conditions of a public water supply agreement approved by the Government. 
6. In public water supply territories, other (non- public) water supplier may supply drinking water and/or provide waste water management facilities only if: 
1) he supplied drinking water and/or provided waste water management facilities before the public water supply territory was established and the drinking water supplied and waste water management facilities provided by him comply with the requirements set out in legal acts or
2) where water supply and waste water management infrastructure development plans have been approved, the public water supplier within one year (unless otherwise provided for in the agreement) from the date of concluding a preliminary agreement with a new subscriber (consumer) or within the period of time agreed upon by the parties in the preliminary agreement does not commence the supply of drinking water and/or provision of waste water management facilities to the subscriber (consumer).   
7. In public water supply territories, individual water abstraction and/or individual waste water disposal shall be possible if the individual water abstraction and/or individual waste water disposal has been provided for in a water supply and waste water management infrastructure development plan and if it was carried out before establishing the public water supply territory and the individual water abstraction and/or individual waste water disposal complies with the drinking water and waste water management requirements laid down in this Law and other legal acts.          
8. A public water supplier must:        
1) provide information to subscribers (consumers) in accordance with the procedure laid down in Article 25 of this Law;    
2) obtain, store, process and supply drinking water meeting the public health safety and quality requirements and other parameters set out in legal acts;     
3) ensure the quality and uninterrupted supply of drinking water and other water supply requirements; 
4) in accordance with the established procedure, operate and maintain the water supply and waste water management infrastructure managed by the right of ownership or on other lawful grounds and other managed assets.
 
Article 16. Organising Public Water Supply
1. To carry out public water supply, a municipality shall, in compliance with the procedure for organising tenders for the selection of public water suppliers, select a public water supplier or, together with other municipalities, reorganise the controlled water supply enterprises by way of merger into a regional supplier (a public water supplier that shall operate in the public water supply territories of several municipalities), whose shares (interests) under the terms of reorganisation shall belong to municipalities and other persons participating in the reorganisation, subject to approval by the councils of all the municipalities located in the region.
2. Participants in the tender shall meet the requirements for obtaining a public water supply licence.  The winner of the tender may commence public water supply activity in accordance with the procedure laid down in Article 19 of this Law, having obtained a public water supply licence.         3. In order to ensure the implementation of the state management and regulation objectives of drinking water supply and waste water management, the Government shall, on the recommendation of the Minister of Environment, approve the division of the territory of the Republic of Lithuania into public water supply regions.  A public water supply region may include territories of several or over ten municipalities, however, the border of the region may not cross the territories of the municipalities. 
4. Municipalities located in the same public water supply region must aim to ensure the selection of a regional water supplier in the public water supply region in accordance with the procedure laid down by this Law and other legal acts.
 
Article 17. Support for Development of Water Supply and Waste Water Management Infrastructure
1. State financial support may be assigned for the development of the public water supply and waste water management infrastructure complying with the objectives of state regulation of drinking water supply and waste water management laid down in Article 3 of this Law. When assigning financial support for the development of the drinking water supply and waste water management infrastructure, it must, first of all, be ensured that public water supply in the territory of all the country is carried out in compliance with the set requirements.
2. State financial support for the development of the water supply and waste water management infrastructure shall be planned and provided to public water suppliers operating in public water supply regions, to ensure the implementation of the environmental requirements and health protection requirements in the spheres of drinking water supply and/or waste water management.
3. State support funds for the development of the water supply and waste water management infrastructure shall be administered and the functions of payment and control thereof performed by the Ministry of Environment.  The support for the development of the water supply and waste water management infrastructure shall be provided in compliance with this Law and in accordance with financial priorities set forth in strategic water supply and waste water management infrastructure development documents approved by the Seimas and the Government.  The support from the funds assigned for the development of the water supply and waste water management infrastructure may be received by persons meeting the requirements set forth in legal acts regulating the allocation of support.
 
Article 18. Water Supply and Waste Water Management Infrastructure
1. The use and maintenance of the drinking water supply and waste water management infrastructure shall be carried out in accordance with the rules for the use and maintenance of the drinking water supply and waste water management infrastructure and requirements set forth in other legal acts.
2. The public water supply and waste water management infrastructure shall be owned by the right of ownership by the municipality in the territory of which the public water supply is carried out or an enterprise controlled by this municipality (municipalities). The public water supply and waste water management infrastructure that is owned by the right of ownership by other persons and is required for the public water supply may, on the initiative of the municipality, be purchased into the ownership of the enterprise controlled by the municipality (municipalities) or the municipality in accordance with the procedure for the purchase of water supply and waste water management infrastructure facilities approved by the Government or agreements regarding the use (lease, loan for use, joint activities, etc.) of the drinking water supply and/or waste water management infrastructure facilities may be concluded.  Where the agreement regarding the purchase of the public water supply and waste water management infrastructure or the agreement regarding the use of the infrastructure cannot be reached, the terms and conditions of the use of the public water supply and waste water management infrastructure may be established by the court or the infrastructure may be taken for public needs in accordance with the procedure set forth by laws and only in cases where the infrastructure is required for the public water supply. 
3. A municipality must enable the public water supplier to use the public water supply and waste water management infrastructure owned by the right of ownership by the municipality and an enterprise controlled by the municipality.  Where the public water supplier is an enterprise controlled by the municipality (municipalities), the public water supply and waste water management infrastructure owned by the municipality by the right of ownership shall be transferred to him by the right of trust.  In the case of public water suppliers of other legal forms, the public water supply and waste water management infrastructure owned by the municipality by the right of ownership shall be leased or transferred awarding concession in accordance with the conditions specified in the documents of the tender for the selection of a public water supplier.  Where the public water supply and waste water management infrastructure is owned by the right of ownership by the enterprise controlled by the municipality, it shall be leased to the public water supplier in accordance with the procedure established by the municipal council.
4. A public water supplier shall decide whether the drinking water supply and/or waste water management infrastructure facilities located in the public water supply territory but not managed or used by him under the agreement are required and suitable for public water supply and, if necessary, may apply to the municipality regarding the buying out or acquiring the right to use these facilities in accordance with paragraph 2 of this Article.
5. The construction of new public water supply and waste water management infrastructure facilities, where the contracting authority is not a public water supplier or municipality, shall be possible where there is a tripartite agreement between the municipality, public water supplier and contracting authority (constructor of the facility). The agreement must provide for the sources of financing the construction of the facility of the public drinking water supply and waste water management infrastructure, the conditions of use (operation) thereof and the terms and procedure for transferring the rights of ownership to the municipality or an enterprise controlled by the municipality, where the enterprise is a public water supplier, if this is not provided for in the Description of the Procedure for Buying Out Drinking Water Supply and Waste Water Management Infrastructure Facilities approved by the Government.
6. Subscribers, except for consumers, who wish to connect the networks or facilities managed by them to the water supply and waste water management infrastructure managed by a public water supplier must, in accordance with the procedure established by municipal institutions, pay the public water supplier a one-time connection fee set by the municipal institutions.  These funds shall be used for the development of the water supply and waste water management infrastructure.
 
CHAPTER FOUR
LICENCING OF WATER SUPPLIERS
QUALIFICATION REQUIREMENTS
 
Article 19.  Licensing of Public Water Supply 
1. Public water supply may be carried out under a public water supply licence, excluding the exception referred to in paragraph 6 of this Article.  Only one licence for carrying out the public water supply shall be issued in the territory of a municipality.  Other (non-public) drinking water supply and waste water management and individual water abstraction and individual waste water disposal shall not be licensed.
2. An enterprise controlled by the State or municipality (municipalities) seeking to carry out public water supply:
1) must possess appropriate divisions (specialists) capable of organising and carrying out drinking water supply and waste water management in accordance with the set requirements or, to carry out an activity specified in the Rules for Licensing of Public Water Supply Activity related to drinking water supply and waste water management, must conclude an agreement with another enterprise that possesses the specified divisions (specialists) and agrees to carry out the drinking water supply and waste water management in accordance with the set requirements;
2) must win a tender to carry out public water supply;
3) must comply with other requirements set in the Rules for Licensing of Public Water Supply Activity established for a public water supplier.
3. An enterprise controlled by the State or municipality (municipalities) seeking to obtain a public water supply licence shall submit an application of an established form and other documents indicated in the Rules for Licensing of Public Water Supply Activity in accordance with the procedure laid down in the Rules for Licensing of Public Water Supply Activity.
4. A public water supply licence shall not be issued if:  
1) an enterprise controlled by the State or municipality (municipalities) fails to meet the set requirements;
2) not all the documents required in accordance with paragraph 3 of this Article are submitted;
3) the submitted documents have been incorrectly completed or fail to meet other requirements set for them;
4) the submitted documents contain erroneous data;
5. The institution issuing licences may decide to suspend the validity of a licence for the period of time specified in the Rules for Licensing of Public Water Supply Activity or to revoke the licence:
1) at the request of a public water supplier;
2) if it transpires that the public water supplier has submitted incorrect or falsified documents to the institution issuing licences;
3) if it is established that the public water supplier does not comply with this Law, Rules for Licensing of Public Water Supply Activity and conditions of licensed activity established by other legal acts;
4) if the public water supplier carries out activity unrelated to drinking water supply and waste water management;
5) if the public water supplier fails, within two months from the entry into force of prices of drinking water supply and waste water management, unilaterally set by the decision of  the National Control Commission for Prices and Energy, to eliminate violations in setting the prices or other circumstances that led to the unilateral setting of prices;
6) if technological, financial and managerial capacities of the public water supplier prevent from carrying out licensed activity;
7) if the public water supplier fails to ensure the conformity with the supplied water and  public health protection requirements;
8) if, within the specified period of time, the public water supplier whose licence has been suspended fails to eliminate violations due to which the licence has been suspended;
9) when the public water supplier acquires the legal status of a legal person under liquidation or reorganisation.
6. Where a public water supply licence is revoked, the public water supply shall be carried out in accordance with subparagraph 1 of Article 17 of the Law of the Republic of Lithuania on Concessions until a public water supplier is selected in accordance with the procedure established by this Law.
 
Article 20. Qualification Requirements
1. Employees of water suppliers responsible for operating drinking water supply and waste water management infrastructure facilities posing a threat to human health and/or the environment must possess a qualification meeting the set requirements and a certificate attesting thereto.
2. Owners of individual water abstraction and/or individual waste water disposal infrastructure facilities posing a threat to human health and/or the environment or persons appointed by them responsible for operating the individual water abstraction and/or individual waste water disposal infrastructure facilities posing a threat to human health and/or the environment must possess a qualification meeting the set requirements and a certificate attesting thereto.
 
CHAPTER FIVE
PUBLIC WATER SUPPLY AGREEMENTS
 
Article 21. Conclusion and Termination of Public Water Supply Agreement
1. A public water supply agreement shall be concluded, amended and terminated in compliance with the Civil Code, Law on Drinking Water, this Law and standard terms and conditions of a public water supply agreement.  The standard terms and conditions of public water supply agreements shall contain the following: the procedure for concluding, entering into force and terminating the agreements, the procedure and conditions for supplying drinking water and providing waste water management facilities, the procedure for setting the price of drinking water and waste water management, the method of payment for drinking water and waste water management facilities by consumers, the rights, duties and liability of the parties for non-fulfilment of the assumed obligations, the procedure for lodging, examining and settling claims, the period of validity of the agreement and the terms and procedure for amending or terminating thereof. The standard terms and conditions of the public water supply agreement shall be binding on both parties, however, the public water supply agreement may also provide for terms and conditions individually agreed upon by the parties that are acceptable to both parties and do not contravene the provisions of legal acts. 
2. A person wishing to conclude a public water supply agreement shall submit his application to the public water supplier in writing.
3. When a public water supplier acquires the right and duty to carry out public water supply in territories where drinking water was supplied and/or waste water management facilities were provided by other drinking water suppliers and/or waste water management facilities providers, he must, without interrupting the supply of drinking water and provision of waste water management facilities, within 3 months, submit a proposal to conclude public water supply agreements with the subscribers (consumers) of the former water supplier. Until the conclusion of the public water supply agreements, drinking water supply shall be carried out and/or waste water management facilities provided in accordance with the terms and conditions of the agreements regarding the purchase and sale of drinking water and/or provision of waste water management facilities concluded between the former water supplier and subscribers (consumers).
4. A subscriber who, at his own initiative, terminates a public water supply agreement, except for the cases where the agreement is terminated due to the fault of the public water supplier or the agreement is terminated by the consumer, must, having evaluated its residual value, compensate the public water supplier for the construction of the infrastructure built by the public water supplier to carry out the public supply of drinking water and/or provision of waste water management facilities. The public water supplier also must, when terminating the public water supply agreement or defaulting on his contractual obligations, compensate the subscriber for all the expenses incurred by him in the manner prescribed by the law.
5. Where a person has not concluded a public water supply agreement, however the facilities for the use of drinking water and disposal of waste water owned by him by the right of ownership or managed or used on other lawful grounds have been connected to the water supply and waste water management infrastructure of the public water supplier, the public water supply agreement shall be considered concluded in accordance with the standard terms and conditions of the public water supply agreement established by the Government.
 
CHAPTER SIX
PRICING
 
Article 22. Price Setting
1. If a water supplier is a public water supplier in at least one municipality, he shall supply drinking water and provide waste water management facilities to all subscribers (consumers) of the same category at the same prices.
2. A water supplier shall plan his costs and income on the basis of activity and development plans of the enterprise which he must co-ordinate with municipalities. The activity and development plans shall be prepared for the period of time not less than 3 years.
3. The price of drinking water and waste water management facilities provided by public water suppliers must be based on the necessary costs related to the public water supply activity.  The price of drinking water and waste water management facilities must ensure long-term operation of the infrastructure intended for the public supply of drinking water and provision of waste water management facilities and update thereof and create reasonable conditions for subscribers (consumers) to use the public drinking water supply and waste water management facilities as well as to reduce environmental pollution and to rationally use water resources.
4. The pricing of drinking water supply and waste water management facilities provided by public water suppliers shall be established in accordance with the non-discrimination and cost recovery principles as well as the polluter pays principle.  The prices may be differentiated based on individual categories of subscribers (consumers), taking into consideration the criteria related to the necessary costs required to supply water and/or provide waste water management facilities to subscribers (consumers) of a certain category. The prices of waste water management facilities must depend on the amount of pollutants released by the subscriber (consumer) and the nature of pollution.
5. Public water suppliers shall, in compliance with the price setting methodology for drinking water and waste water management facilities, calculate the prices of the supplied drinking water and provided waste water management facilities and, having co-ordinated them with the National Control Commission for Prices and Energy, shall submit them for approval to the councils of the municipalities on the territories whereof they supply drinking water and provide waste water management facilities. Other (non-public) water suppliers shall set the prices of the supplied drinking water and provided waste water management facilities in compliance with the price setting methodology for drinking water and waste water management facilities, having co-ordinated them with the National Control Commission for Prices and Energy.  The prices of the drinking water and waste water management facilities must be calculated based on the costs of separate sections of the drinking water supply and waste water management activity established by the National Control Commission for Prices and Energy.  The prices of the drinking water and waste water management facilities shall be set for the period of time not less than 3 years.  The water supplier must, together with price calculations, submit to the National Control Commission for Prices and Energy the activity and development plans of the enterprise, prepared for the period of time not less than the period of validity of the prices. When co-ordinating the prices, the National Control Commission for Prices and Energy shall evaluate the recouping of investment and expediency of operational costs.  In the event of non-compliance with or amendment of the activity and development plans, the water supplier must notify thereof the municipal council and the National Control Commission for Prices and Energy, which shall take a decision on the need to change the prices.  
6. Public water suppliers shall notify the National Control Commission for Prices and Energy of the prices set by municipal councils and their justification within 10 days from the date of setting the prices but not later than 30 days before the date of their entry into force. Upon establishing violations of the price setting, the National Control Commission for Prices and Energy shall refer them to municipalities.  The municipalities must eliminate the specified violations within 30 days.
7. The National Control Commission for Prices and Energy shall control whether the prices of drinking water and waste water management facilities set by municipal councils and applied by water suppliers have been set in accordance with the methodology and pricing principles referred to in paragraph 4 of this Article, also whether the prices cover the costs of the supply of drinking water and provision of waste water management facilities and other necessary costs related to the activity incurred by the water supplier. Where municipal councils set prices other than those that the water suppliers have co-ordinated with the National Control Commission for Prices and Energy, the National Control Commission for Prices and Energy shall have the right to require the municipalities to present the set price calculations for the drinking water and waste water management facilities.  Upon establishing that the prices set by the municipal councils do not comply with the methodology or violate the pricing principles established in paragraph 4 of this Article or do not cover the costs of the supply of drinking water and provision of waste water management facilities and other necessary costs related to the activity incurred by a water supplier, the National Control Commission for Prices and Energy shall have the right to require the municipal councils to eliminate the price setting violations within 2 months or to submit new prices for co-ordination in accordance with the procedure laid down by this Law.
8. The National Control Commission for Prices and Energy shall, by its decision, specifying the period of validity of the decision, have the right to unilaterally set the prices of drinking water and waste water management facilities to the supplier, where municipal councils fail to eliminate the price setting violations within 2 months from the date of entry into force of the decision of the National Control Commission for Prices and Energy confirming these violations in accordance with the procedure laid down in paragraph 7 of this Article.
9. The National Control Commission for Prices and Energy shall publish the set prices of drinking water and waste water management facilities in the supplement Informaciniai pranešimai to the official gazette Valstybės žinios. Water suppliers shall publish the set prices of drinking water and waste water management facilities in local newspapers. The prices shall enter into force not earlier than 30 days from the date of their publication and shall apply from the first day of the next month (following the month of entry into force of the prices). 
10. Following a temporarily stop in the supply of drinking water at the request of the subscriber (consumer), public water suppliers may require to pay a disconnection (connection) fee.    The disconnection (connection) fees shall be set by the public water supplier, in compliance with the methodology of the National Control Commission for Prices and Energy.
 
Article 23.  Procedure for Payment for Supplied Drinking Water and Provided Waste Water Management Facilities
1. Subscribers (consumers) shall pay for the drinking water supplied by a water supplier according to the readings of drinking water meters, installed at the water supply and consumption limit, if not provided otherwise by the agreement.  The drinking water meters at the water supply and consumption limit shall be installed and operated by the water supplier at his own expense.  The costs of purchasing, installing and operating the meters shall be included in the price of water.  When paying for the drinking water and waste water management facilities provided in multi-dwelling buildings, the supply and consumption limit shall be each apartment or other premises.  Owners of apartments and other premises in the multi-dwelling building shall have the right to choose the supply and consumption limit at the feeder when concluding a written agreement with all the owners supplied with drinking water from that feeder and providing for it in agreements with a water supplier.
2. The amount of waste water received for treatment by a water supplier, where there are no waste water meters installed in accordance with the set procedure, shall be equivalent to the amount of water supplied. The waste water meters shall be installed in cases where, due to production and/or peculiarities of water usage specified in the Description of the Procedure for Payment for the Supplied Drinking Water and Provided Waste Water Management Facilities, the amount of water consumed and waste water released differ substantially.
3. A subscriber (consumer), entitled to have a waste water meter installed in accordance with paragraph 2 of this Article, wishing to pay the public water supplier for the waste water management facilities according to the actual amount of the waste water released, shall submit an application to the public water supplier providing waste water management facilities in accordance with the Rules for the Use and Maintenance of the Drinking Water Supply and Waste Water Management Infrastructure to install the waste water meter to enable to pay for the waste water management facilities according to its readings. In multi-dwelling buildings and other residential premises the waste water meters shall not be installed, even if installed, they shall not be used for settling the accounts, unless otherwise agreed by the parties in writing. 
4. A water supplier shall have the right to install a waste water meter at the waste water transfer limit and require to pay for waste water management facilities according to its readings. 
5. Waste water meters shall be installed by a water supplier at his own expense.  The costs of installing waste water meters shall be included in the price of waste water management.
6. The conditions of payment for the drinking water supplied and waste water management facilities provided by a public water supplier shall be detailed in the Description of the Procedure for Payment for the Supplied Drinking Water and Provided Waste Water Management Facilities.
 
 
CHAPTER SEVEN
MANAGING INFORMATION ON DRINKING WATER SUPPLY AND WASTE WATER MANAGEMENT
 
Article 24. Information on Public Water Suppliers
All the information related to water supply shall be public, except for the information that may not be public information under the laws of the Republic of Lithuania. State and municipal institutions, organisations protecting the rights of water consumers, natural and legal persons shall have the right to obtain data from water suppliers regarding the water supply activity and to submit proposals. The information on the public water suppliers and their annual activity report shall be prepared and published in accordance with the procedure established by the Government or an institution authorized by it.
 
 
Article 25. Provision of Information to the Public Regarding Supplied Drinking Water and Waste Water Management Facilities
1. The results of the supplied drinking water quality control shall be annually announced in accordance with the procedure laid down by the Law on Drinking Water.
2. A water supplier must, in accordance with the procedure established by the Minister of Environment, provide information to subscribers (consumers) regarding the quality of drinking water, its deterioration, accidents, planned interruptions in the supply of drinking water and provision of waste water management facilities and other changes that may affect the subscribers (consumers), the use of water, safe and efficient use of water supply infrastructure, its development, water prices and services provided to the subscribers (consumers).
 
CHAPTER EIGHT
DISPUTE (COMPLAINT) SETTLEMENT.  LIABILITY
 
Article 26. Dispute (Complaint) Settlement
Disputes (complaints) regarding drinking water supply and waste water management shall be settled by mutual agreement of the water supplier and subscriber (consumer) or in accordance with the procedure set forth by laws.
 
CHAPTER NINE
FINAL PROVISIONS
 
Article 27. Entry into Force and Implementation of the Law
The procedure for entry into force and implementation of this Law shall be laid down by the Law of the Republic of Lithuania on Entry into Force and Implementation of the Law on Drinking Water Supply and Waste Water Management.
 
I promulgate this Law passed by the Seimas of the Republic of Lithuania
 
 
 
 
 
 
 
PRESIDENT OF THE REPUBLIC                                                 VALDAS ADAMKUS