Ordinance On Notification Of Prices, Costs And Other Conditions For The Transport And Supply Of District Heating, As Well As The Cost Of Production To Be Used For The Setting Of Price Ceilings

Original Language Title: Bekendtgørelse om anmeldelse af priser, omkostningsfordeling og andre betingelser for transport og levering af fjernvarme samt produktionsomkostninger til brug for fastsættelse af prislofter

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=125067

Overview (table of contents) Annex 1

Annex 2

Annex 3

Annex 4

Annex 5 The full text of the Ordinance on notification of prices, costs and other conditions for the transport and supply of district heating, as well as the cost of production to be used for the setting of price ceilings

Pursuant to §§ 21 (1) and 34 (2) of the law on the heat supply of the basic regulation. lovbekendtgørelse nr. 347 of 17. May 2005, as amended by Act No. 503 of 17. June 2008, fixed:

§ 1. Notification requirement under this Ordinance shall be the responsibility of the collective heating installations, see. section 2, paragraph 1, of the lov om varmeforsyning, as well as industrial companies, combined heat and power plants with an eleffekt over 25 MW and geothermal plants, etc., that supplies heated water, steam or gas other than natural gas.

Review of tariffs, cost allocation and other conditions

§ 2. The notification obligation referred to in paragraph 1 include fixed, companies and utilities tariffs, cost allocation and other conditions, including general provisions for district heating supply and technical delivery regulations, provisions on interest and fees and recovery of arrears, supply agreements, etc., for supply to the domestic market of heated water, steam or gas other than natural gas.

(2). The notification obligation referred to in paragraph 1 also includes fixed, enterprises and facilities budgets, financial information for display of the determination of tariffs (price determination) and other information that is the basis for determining tariffs, cost allocation and other conditions. Provisions shall be made, the notification obligation also includes investment and the appropriation level.

(3). Plants, companies and works as referred to in paragraph 1, which shall draw up the annual report in accordance with the Danish financial statements Act and annual financial statement shall simultaneously with the notification of price determination in accordance with paragraph 2, shall submit annual report or financial statements, as well as the reconciliation between annual report/annual accounts and price determination.

(4). Notification requirement shall apply mutatis mutandis for clauses in the companies that own the collective heating installations, see. Article 21, paragraph 6.

§ 3. Review of tariffs under section 2, paragraph 1, and budget and price determination under section 2, paragraph 2, shall contain the information set out in annex 1-2, see. However, section 7.

(2). Review and Auditor statement on review of price determination in accordance with paragraph 4, can be done electronically to the Energy supervision online directory.

(3). Default account plan prepared by energy industry organizations and others. may, in so far as it contains the information set out in annex 2, form the basis for review to the Energy supervision online directory.

(4). Review of price determination shall be provided with a statement relating to the company's compliance with the heat supply Act Chapter 4 supplied by a certified accountant, chartered accountant, the municipal auditor or an auditor, covered by the statutory auditor § 11. The Declaration shall contain the information set out in annex 5, as well as meet the requirements of the audit script, annex 4.

§ 4. Review under section 2, paragraphs 1 and 2, of tariffs as well as the basis, cost allocation and other conditions, must be done within 30 days after the determination or decision of the competent body, at the latest at the same time that tariffs, conditions, etc. enters into force.

(2). Notifiable, which uses a fiscal year ending between 1. June and 30. November, must notify price determination of load bearing the auditor statement before the first coming 15. March. Notifiable, which uses a fiscal year to maturity between 1. December and 31. may, should review this information before the next 15. September.

(3). The tariffs, other conditions, etc. be recorded in publicly available directory supervision Energy.

(4). Tariffs, cost allocation and other conditions that are not declared as prescribed under section 2, paragraphs 1 and 4, and article 3, paragraph 1, are invalid, see. Article 21, paragraph 3.

Review of production costs to be used for the setting of price ceilings

§ 5. To use for setting the price caps and maximum prices of district heating from waste incineration plants must heat generation plants with own production of hot water review heat generation costs. Central production plant can instead of cost of production of heat review prices in supply contracts, as the plant part with heat distribution installations for the supply of hot water.

(2). After Energy supervisory quantification can certain installations may be exempted from notification in accordance with paragraph 1, including:





1) installations in addition to own production of hot water buys heat from an external supplier, and

2) plants that produce hot water based on a combination of natural gas and biomass.





(3). By heat generation costs shall mean all production of the plant for the production of hot water costs deducted from all income. If the production of electricity is included in the heat generation plant's total production costs, deducted from the proceeds of the sale of electricity and support for electricity generation.

(4). Review of heat generation costs happens simultaneously with the notification of price determination under section 2, paragraph 2. The notification shall, in addition to the information contained in the notification of price determination, contain the information set out in annex 3.

(5). Default account plan prepared by energy industry organizations and others. can serve as a basis for review to the Energy supervision online directory of the cost of production, which is set out in annex 3.

(6). The provisions of § 3, paragraph 2, and section 4, paragraph 2 – 3, shall apply mutatis mutandis.

Penalties;

§ 6. With fine punishable, without prejudice. Article 34, paragraph 2,





1) breach of the obligation to notify under this Ordinance,

2) incorrect or misleading information or statements in accordance with this Ordinance.





(2). Fails any good time to comply with an obligation issued by the Danish energy regulatory authority under section 21, paragraph 1, 4 or 5, the Danish energy regulatory authority as a compulsory instrument to impose on those daily or weekly fines referred to in article 6. § 33.

(3). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

Waiver and entry into force

§ 7. The Danish energy regulatory authority may decide that the companies that have different production than the heat, and that heat generation costs after distribution, to encounter other notification requirements than those listed in section 3, paragraph 1, referred to.

§ 8. The Danish energy regulatory authority may, in exceptional cases, dispense with the notice, where the provisions of sections 1-5 result in significant disadvantages for businesses or consumers or unfair inequality among businesses.

§ 9. The notice shall enter into force on the 1. June 2009 and applies to reviews carried out for the Danish energy regulatory authority on that date or later.

(2). The provision in article 3, paragraph 4, shall apply to the notification of price eftervisninger for the fiscal year that begins on 1 January. June 2009 or later.

(3). At the same time as the entry into force of this decree repealed Executive Order No. 1070 of 4. December 2000 laying down rules for the notification of prices, costs and other conditions for the transport and supply of district heating, as well as the total or partial sale of shares in heat supply companies.
The Danish energy regulatory authority, the 25. May 2009 Uffe Bundgaard-Jørgensen/Finn Dehlbæk Annex 1

Review of tariffs, see. § 2 (1)









I. Review of the tariffs for supply to the final consumer of heated water, steam or gas, with the exception of natural gas, must contain the following information (amount excluding VAT):





 





1.





Date of entry into force of the notified tariffs







2.





Variable contribution specified per MWh







3.





Fixed contribution, specified in the defined contribution elements included (subscription contribution, effect contribution and any other contribution), listed per year







4.





Information about the basis for the calculation of power contribution included in the defined contribution







5.





Overall consumer price for the following standard customer categories, in so far as it concerned the downstream category exists within the area heat supply delivers to:





 



5.1.





Apartment with average consumption of 15 MWh





 



5.2.





Detached house with average consumption of 18.1 MWh





 



5.3. – 7.





Apartment buildings, commercial buildings, institutions, etc. with average consumption of, respectively, 200, 1,000, 4,000, 16,000 and 50,000 MWh





 





II. Review of tariffs for deliveries not included in, the heated water, steam or gas, with the exception of natural gas, must contain the following information:








1.





Date of entry into force of the notified tariffs







2.





Variable contribution specified per MWh







3.





Solid contributions and fees, specified in the elements, listed per year







4.





Information on the calculation basis of the contribution is calculated.







Annex 2

Review of budget and accounting information to the demonstration of the determination of tariffs (price determination) of the basic regulation. § 2 (2)









Review of budget and price determination for the Danish energy regulatory authority shall contain the following information:







1.





Budget-fiscal year, respectively







2.





Costs, as a minimum, with the following entries:





 



2.1. Cost of production, including fuel and varmekøb





 



2.2. Operation and maintenance





 



2.3.





Løn





 



2.4. Management





 



2.5. operational depreciation according to the heat supply Act





 



2.6. Reserves for new investments under the heat supply Act





 



2.7. the costs in section 2.2., 2.3., 2.5. and 2.6. set distributed at production plants, distribution networks, other facilities and possibly. transmission





 



2.8. Other costs, including consumption of purchased CO2 quotas







3.





Revenue, as a minimum, with the following entries:





 



3.1. Revenue from the consumption calculation can be spread on variable and fixed contribution





 



3.2.





Gebyrer





 



3.3. Other revenue, including the sale of CO2 quotas







4.





Financial expenses and income







5.





Over/under coverage from previous year budget/fiscal year







6.





Investment and the appropriation plan prepared in accordance with Executive Order No. 175 of 18. March 1991, as amended by Decree No. 596 of 8. June 2007, on operational depreciation, provisions for new investments and remuneration of share capital according to the law on heat supply (depreciation notice)





 





Price determination must in addition contain information about:







7.





Realised losses on accounts receivable







8.





Number of CO2 allowances received, number of allowances sold and number of allowances purchased







9.





Assets distributed on the following items:





 



9.1. installations, listed separately for production plants, distribution networks, other facilities including management, as well as possibly. primo and ultimo balance transmission, as well as movements, including depreciation and amortization





 



9.2. Inventories





 



9.3. Receivables





 



9.4. Cash and cash equivalents







10.





Liabilities, broken down into the following entries:





 



10.1. information, including capital subscribed Capital according to the articles of Association and approved, not paid remuneration of share capital





 



10.2. Over/under coverage, including previous years possibly. over-/under coverage has not yet reversed/charged





 



10.3. Reserves, including the previous year's reserve





 



10.4. Long-term liabilities





 



10.5. short-term liabilities







11.





Production, capacity and technical data







12.





Used fuel/purchased heat distributed on fuels, expressed in per cent of the total fuel use







13.





If heat supply produces electricity, and the cost of production of electricity is included in the declared total production costs:





 



Proceeds from the sale of electricity, including a subsidy for electricity production.







Annex 3

Review of production costs to be used for the setting of price ceilings. § 5

FA review of production costs for the production of heat for use for the setting of price ceilings must in addition to the information contained in the review of the accounting information referred to in article 6. section 2, paragraph 2, and annex 2, include the following information:









1.





Costs of plant for the production of heat.





 



Production costs include all costs related to the plant's production, including fuel costs, purchase of electricity, pumps, etc., repair and maintenance, småanskaffelser, insurance, SCADA system (management, control, and surveillance systems), heat exchangers, pumps, water treatment, etc.., personnel costs, business management, local costs, environment, research and development.





 



Production costs are reduced not with the calculated losses.







2.





Interest costs attributable to production plants.







3.





Indication of any extraordinary circumstances regarding. heat production, for example, compensation for consequential loss or special long time with stoppages.







Annex 4

Audit instruction

Audit script for declaring donations on accounting information for demonstration of the determination of tariffs (price determination), including information needed for determination of price ceiling, covered by heat supply Act § 21 (1)

This script is an annex to the Ordinance on notification of prices, costs and other conditions for the transport and supply of district heating, as well as the cost of production to be used for the setting of price ceilings (notification Ordinance) issued by the Danish energy regulatory authority on the basis of the law on heat supply, LBK nr. 347 of 17. May 2005 as amended, § 21 (1).

§ 1. This audit instructions relating to Auditor's issuance of statements on the review of the accounting information for the display of the determination of tariffs (price determination), etc. for the Danish energy regulatory authority pursuant to lov om varmeforsyning. The script describes the specific tasks, the statutory auditor should at least ensure in the context of the submission of the Declaration.


§ 2. The auditor should use the default statement, prepared by the Danish energy regulatory authority, "Declaration of the independent auditor concerning notifiable heating supplies review of accounting information to the demonstration of the determination of tariffs (price determination), including information needed for determination of price ceiling, after heat supply Act § 21 (1)", annex 5.

(2). This declaration must be made in accordance with the notification of the Executive order on section 3 (4) and section 4, paragraph 2.

Requirements for audit execution

§ 3. It is the auditor's task is to ensure that the notified accounting information for demonstration of the determination of tariffs (price determination) is calculated in accordance with Chapter 4 and the heating supply rules issued thereunder, including Decree No. 175 of 18. March 1991, as amended by Decree No. 596 of 8. June 2007, (depreciation notice), as well as Energy supervisory practices after heat supply Act, see. "Guide to budget and price determination", June 2009.

§ 4. Auditor shall ensure, including at least:




(a)) to over-or under cover for a fiscal year be returned to, respectively, charged to the consumers in accordance with the Energy supervisory guidance for budget and price determination,

(b)) the notified accounting information are aligned with accounting and external annual report,

(c)) that they charged depreciation in price eftervisningen is calculated in accordance with the notice, including the depreciation basis for depreciation is the acquisition price of the basic regulation. paragraph 3, as well as to the depreciation depreciation is included in the budget for the year, price eftervisningen relate,

(d)) that provisions shall be made in accordance with paragraph 5, including depreciation that is prepared and reviewed the investment-and the appropriation level, and that the contingency reserve is included in the budget for the year, price eftervisningen relate,

(e)) to the cost of the acquisition of CO2 allowances for heat production is notified in accordance with section 20, paragraph heating 8 – 10, and pursuant to section 20, paragraph 11, laid down rules on set-off in the price of CO2 allowances assigned heat for heat production, and

f) in the case of heat supply is required to declare production costs to use for setting the price ceiling for waste incineration plants:




 



to information concerning the cost of production to be used for the setting of price ceilings and maximum prices of district heating from waste incineration plants are delivered in accordance with paragraph 5 and annex 3 of notification.







(2). Fixed account balance shall ensure auditor:




(a)) that fixed the account value at the beginning of the year corresponds to fixed the account balance at the end of the previous year,

(b)) to the fixed account only is increased through the acquisition of works for which is paid remuneration/issued shares, and that there has been no revaluation in the form of up-or write-downs of fixed account, in addition to impairment losses as indicated in) (c) and (d)).

(c)) that there has been a depreciation of the fixed asset account with charged reserves in the year in which the facility is assigned to, will be ready for commissioning,

(d)) that there is impairment of fixed account with one-off payments in the form of capital contribution and connection charges and other one-time payments that consumers pay by their connection,

e) to fixed values, where heat supply has participated in merger or takeover by other heat supply, primo year is calculated as the sum of the respective heating supplies heat price written values, as well as to the basis for depreciation is in accordance with § 20 heat supply, paragraph 7.



(3). For capital account he or she shall ensure that the Auditor:




(a)) that the account value at the beginning of the year corresponds to the account's balance in the price eftervisningen at the end of the previous year.



§ 5. Auditor shall ensure that in heat supply cost for heat supply Act only recognised remuneration of share capital within the limits of the prior approved by the energy regulatory authority.

§ 6. Any reservations for price eftervisningens accordance with heat supply Act and the notification provisions of the Executive order and the reasons for doing so must be indicated in the auditor's statement, see. Declaration of the Executive order on section 15.

§ 7. Additional information regarding any matters to which the statutory auditor points without taking reservations, must be indicated in the auditor's statement, see. Declaration of the Executive order on section 16.

§ 8. Auditor's statement on review of financial information, etc. for the Danish energy regulatory authority must be available in the in the notification of the Executive order on section 4, paragraph 2, stated deadline.

§ 9. This instruction applies to the review of reported financial information for the fiscal year that begins on 1 January. June 2009 or later.
Annex 5

Auditing Standard Statement

Declaration by the independent auditor concerning notifiable heating supplies review of accounting information to the demonstration of the determination of tariffs (price determination), including information needed for determination of price ceiling, after heat supply Act § 21 (1)

For The Danish Energy Regulatory Authority

In the context of the review of the accounting information for the display of the determination of tariffs (price determination), including information needed for determination of price ceiling, after heat supply Act § 21 (1), and this order, from







 

 

 

 

 





heat supply:



 



CVR-nr.



 



P-nr.





 

 

 

 

 



 

 

 

 

 







fiscal year: _______________

We must, in accordance with the notification notice with audit instruction 1. June 2009, including rules on accounting and auditing, certify the accuracy and completeness of the heat supply review.






 





____________________________________ [insert heat supply's name] is responsible for the drew up the review. Our responsibility is, on the basis of our audit to express a conclusion on the notification, as heat supply has produced, including the notified accounting information for demonstration of the determination of tariffs (price determination) is calculated in accordance with Chapter 4 and the heating supply rules issued thereunder, as well as Energy supervisory "guidance for budget and price determination".

The Declaration is issued solely for the use of the Energy supervisory oversight and statements pursuant to lov om varmeforsyning.

The performed audit

We have organized and carried out our audit in accordance with [the Danish auditing standard on assurance services security (RS 800) and] 1) audit instructions by 1. June 2009, including rules on accounting and auditing with a view to achieving a high degree of assurance that the notification does not contain material misstatements.

As part of our audit, we have verified that the notification is in accordance with heat supply and heat supply by law registrations Chapter 4, this order rules and Energy supervisory guidance for budget and price determination.

It is our opinion that the performed audit provides an adequate basis for our conclusion. 2)







 





Any reservations





 



 



 







A. Conclusion without forbehold3)

It is our opinion that ____________________________________ [insert heat supply name] notified the accounting information for the display of the determination of tariffs (price determination) for the period from __________ [insert financial year] is calculated in accordance with Chapter 4 and the heating supply rules issued thereunder, as well as Energy supervisory guidance for budget and price determination.

[or:]

B. Conclusion with forbehold4)

It is our opinion that ____________________________________ [insert heat supply name] notified the accounting information for the display of the determination of tariffs (price determination) for the period from __________ [insert financial year] apart from the above reservations is measured in accordance with the heat supply Act Chapter 4 and the rules issued thereunder, as well as Energy supervisory guidance for budget and price determination.

[or:]

C. Afkræftende konklusion5)

It is our opinion that ____________________________________ [insert heat supply name] notified the accounting information for the display of the determination of tariffs (price determination) for the period from __________ [insert financial year] as a result of the above reservations are not calculated in accordance with Chapter 4 and the heating supply rules issued thereunder, as well as Energy supervisory guidance for budget and price determination.

[or:]

D. Conclusion may not udtrykkes6)


It is our opinion that ____________________________________ [insert heat supply name] notified the accounting information for the display of the determination of tariffs (price determination) for the period from __________ [insert financial year] as a result of the above reservations cannot be revised in accordance with auditing standard and audit instructions, and we can therefore not express a conclusion on the notification.







 





Any additional information





 



 



 





Official notes 1) This text may be omitted, if the auditor is not required to follow the audit standard.

2) This text is omitted, if the auditor is unable to express a conclusion.

3) Text used when the statement is issued without reservation.

4) Text used when the statement is issued with reservations.

5) Text is used, if a conclusion with caveats is not sufficient to show that the notification is misleading or deficient after heat supply Act, etc.

6) Text is used, if the auditor has not been able to obtain sufficient and appropriate audit evidence and therefore is not in a position to express a conclusion on the notification.