On 1 september 2021 the new procedure came into effect for obtaining technical specifications for the purposes of design and construction
Pepeliaev Group advises that Federal Law No. 276-FZ (“Law 276-FZ”) “On amending the Russian Town-planning Code and certain items of Russian legislation” was signed and published on 1 July 2021. This law amends the procedure for obtaining technical specifications (the “TS”) for the purposes of connecting to water supply, water disposal, heat supply and natural gas supply systems[1].
The amendments introduced by Law 276-FZ came into effect on 1 September 2021[2].
Before 1 September 2021, the Russian Town-planning Code (the “TpC”) provided that authorities, holders of titles to land plots and certain other parties had a right to obtain so-called provisional TS and accordingly, companies operating utility networks were obliged to grant such TS[3]. According to the TpC, such “provisional” TS must include:
Before 1 September 2021, only the part of the provided (“provisional”) TS containing information about the limit load, timeframes for connection and period of validity of the TS was binding on companies operating utility networks. This is only a part of the information required to prepare design documentation. At the same time, other information included in such TS (for example, regarding the possible point of connection), was for reference only and was usually inaccurate. When agreements for connection were concluded afterwards, the company operating the utility networks could change such other information.
Unlike the previous procedure, the new procedure for obtaining TS which came into effect on 1 September 2021, provides, among other things, for the following:
It should be noted that:
• new provisions of the TpC regarding the granting of TS will not apply to power supply networks[14]. Therefore, the new procedure for obtaining TS that will come into effect on 1 September 2021 will apply to the obtaining of TS for the purposes of connecting to water supply, water disposal, heat supply and natural gas supply networks[15];
• The TS granted prior to when the new procedure for the granting of TS came into effect will remain in force and the relationships associated with connection of facilities to utility networks based on such TS will be regulated by the provisions of the TpC that were in effect before 1 September 2021[16].
[1] https://sozd.duma.gov.ru/bill/1100846-7.
[2] Article 6 of Law 276-FZ.
[3] Article 48(7) of the TpC.
[4] Same as above.
[5] “The obligations of the company that provided technical specifications setting the load limit, timeframes for connection (technological connection) ... and the period of validity of the technical specifications are terminated if within one year or, in the case of comprehensive development of a territory, within three years from when these technological specifications are provided to the holder of title to the land plot or to the person providing for the preparation of design documentation according to sections 1.1 and 1.2 of this article, or to the party to the agreement for the comprehensive development of the territory they do not determine the load that they require for the connection (technological connection) to utility networks within the limits of technical specifications provided to them and do not submit an application for such connection (technological connection)” (article 48(7) of the TpC).
[6] 7 business days (see article 48(7) of the TpC and article 52.1(3) of the TpC as amended by Law 276-FZ).
[7] Article 52.1(3) of the TpC (introduced by Law 276-FZ).
[8] As we have mentioned above, according to article 48(7) of the TpC, TS must contain only the load limit, the timeframes for the connection and the period of validity of the TS.
[9] Article 52.1(2) of the TpC (introduced by Law 276-FZ). At the same time, information about the possibility of making a connection (technological connection) to utility networks (except for power supply networks) including information about the load limits at the possible points of connection to such networks will be a part of the urban development plan for the land plot (see article 57.3(3)(15) of the TpC as amended by Law 276-FZ).
[10] See, for example, Resolution No. 787 of the Russian Government “On making a connection (technological connection) to heat supply systems, on non-discriminatory access to services in the sphere of heat supply and on amending and repealing certain regulations of the Russian Government” dated 5 July 2018.
[11] Article 52.1(3) of the TpC (introduced by Law 276-FZ).
[12] Article 57.3(2) and 57.3(3)(15) of the TpC (as amended by Law 276-FZ).
[13] “Information specified in the urban development plan for a land plot, except for the information set out in part 3(15) of this article, may be used for preparing design documentation and for obtaining a construction permit within three years from the date of it”. (article 57.3(10) as emended by Law 276-FZ).
[14] Before 1 September 2021, the provisions of the TpC regarding the granting of TS did not apply to the granting of TS for power supply: “The requirements of parts from 7 to 10 of this article do not apply to technological connection of capital construction facilities to power supply networks. The procedure for the corresponding technological connection to power supply networks is established by Russian legislation on the electric power industry (article 48(10.1)). An essentially similar rule has been in effect starting from 1 September 2021 (article 52.1(3) of the TpC as amended by Law 276-FZ). Therefore, the procedure for the granting of TS for power supply purposes will continue to be regulated by legislation on the electric power industry including by article 26 of Federal Law No. 35-FZ “On electric power industry” dated 26 March 2003 and by Resolution No. 861 dated 27 December 2004 "On approving the Rules for access to electric power transmission services without discrimination and for provision of these services, the Rules for access to real-time operations management services in the electric power industry without discrimination and for provision of these services, the Rules for access without discrimination to the services of an administrator of a trade system of the wholesale market and for provision of these services, and the Rules for technological connection to electric networks of electric power consumers’ devices receiving electric power, as well as facilities producing electric power and power grid facilities".
[15] “Technical specifications are granted for the purposes of concluding an agreement for connection (technological connection) free of charge, within seven business days at the request of parties specified in article 48(5.2) of this Code and parts 5 and 6 of this article, except for cases of technological connections to electric power networks” (new article 52.1(3) of the TpC introduced by Law 276-FZ).
[16] Article 5 of Law 276-FZ.
The amendments introduced by Law 276-FZ came into effect on 1 September 2021[2].
Before 1 September 2021, the Russian Town-planning Code (the “TpC”) provided that authorities, holders of titles to land plots and certain other parties had a right to obtain so-called provisional TS and accordingly, companies operating utility networks were obliged to grant such TS[3]. According to the TpC, such “provisional” TS must include:
- the load limit;
- timeframes for the connection (technological connection) of capital construction facilities to utility networks; and
- the period of validity of the TS.
Before 1 September 2021, only the part of the provided (“provisional”) TS containing information about the limit load, timeframes for connection and period of validity of the TS was binding on companies operating utility networks. This is only a part of the information required to prepare design documentation. At the same time, other information included in such TS (for example, regarding the possible point of connection), was for reference only and was usually inaccurate. When agreements for connection were concluded afterwards, the company operating the utility networks could change such other information.
Unlike the previous procedure, the new procedure for obtaining TS which came into effect on 1 September 2021, provides, among other things, for the following:
- the granting is discontinued of two types of TS: (i) “provisional”; and (ii) (“fully functional”) issued afterwards when the agreement for connection was concluded. TS will now be granted only once (within the timeframe previously established for the granting of “provisional” TS)[6]. When the agreement for connection is concluded after TS are granted, the TS will automatically become an integral part of such agreement. All terms and conditions specified in the granted TS will be binding, and the company that granted the TS will (if an agreement for connection is concluded with it) be bound by all such terms and conditions[7];
- It is unclear yet what specifically the content will be of TS granted under the new procedure, but it will be determined not by the rules of the TpC[8] but by the rules for connection (technological connection) to utility networks of the corresponding type approved by the Russian Government[9]. We should note that, at present, the rules for the connection (technological connection) to heat supply, water supply and water disposal networks establish that TS should contain only three parameters: information on the load limit, the timeframes for the connection and the period of validity of the TS[10]. It is very likely that the requirements for the content of TS will be amended by the Russian Government to include a greater number of parameters because otherwise, the procedure for granting TS for the connection to heat supply, water supply and water disposal networks will essentially remain the same (in other words, TS will not include all information that is necessary for preparing the design);
- Previously, if an interested party did not submit an application for connection within one year (or three years in the case of comprehensive development of a territory) from when TS had been provided, the granted (“provisional”) TS ceased to have effect. Starting from 1 September 2021, this provision of the TpC has been repealed. Potentially, this will be followed by the repeal of similar provisions contained in the rules for making a connection (technological connection) approved by the Russian Government. In this case, it will be possible to submit an application before the period of validity of the TS expires. At the same time, starting from 1 September 2021, the period of validity of TS will not change and, as previously, will be not less than three years from the date of the TS (and not less than five years from the date of the TS in the case of comprehensive development of a territory);
- TS will be granted, among other cases, at the request of parties with whom a contractor agreement has been concluded for drafting design documentation (in other words, at the request of designers)[11].
It should be noted that in Moscow, for example, the following approach to obtaining TS has formed several years ago: parties that want to obtain TS are not granted “provisional” TS on the basis of article 48(7) of the TpC, but contact network operators straight away with an application to conclude an agreement for connection. As a part of the procedure for concluding such agreements, network operators (for example, Moscow United Energy Company (MOEK)) prepare fully valid (final) TS as parts of such agreements.
Also, Law 276-FZ, in order to avoid the confusion of concepts, removes the term “technical specifications” from the provisions of the TpC concerning the urban development plan for a land plot (UDP). Starting from 1 September 2021, information concerning the connection to utility networks to be included in the UDP is called “information on the possibility of the connection (technological connection)”. This information will include information about the load limits at the possible points of connection (technological connection) to networks and about the company having provided this information[12]. At the same time, this information will be removed from the scope of information specified in the UDP which may be used for preparing design documentation and obtaining a construction permit[13]. Therefore, this will essentially be reference (guideline) information.It should be noted that:
• new provisions of the TpC regarding the granting of TS will not apply to power supply networks[14]. Therefore, the new procedure for obtaining TS that will come into effect on 1 September 2021 will apply to the obtaining of TS for the purposes of connecting to water supply, water disposal, heat supply and natural gas supply networks[15];
• The TS granted prior to when the new procedure for the granting of TS came into effect will remain in force and the relationships associated with connection of facilities to utility networks based on such TS will be regulated by the provisions of the TpC that were in effect before 1 September 2021[16].
What to think about and what to do
We advise you to become well acquainted with the amendments described above to the procedure for the granting of TS and to take into account the new provisions while planning and carrying out business activities.Help from your adviser
Pepeliaev Group’s lawyers are ready to provide legal assistance to companies with respect to the application of the new emission inventory procedure.[1] https://sozd.duma.gov.ru/bill/1100846-7.
[2] Article 6 of Law 276-FZ.
[3] Article 48(7) of the TpC.
[4] Same as above.
[5] “The obligations of the company that provided technical specifications setting the load limit, timeframes for connection (technological connection) ... and the period of validity of the technical specifications are terminated if within one year or, in the case of comprehensive development of a territory, within three years from when these technological specifications are provided to the holder of title to the land plot or to the person providing for the preparation of design documentation according to sections 1.1 and 1.2 of this article, or to the party to the agreement for the comprehensive development of the territory they do not determine the load that they require for the connection (technological connection) to utility networks within the limits of technical specifications provided to them and do not submit an application for such connection (technological connection)” (article 48(7) of the TpC).
[6] 7 business days (see article 48(7) of the TpC and article 52.1(3) of the TpC as amended by Law 276-FZ).
[7] Article 52.1(3) of the TpC (introduced by Law 276-FZ).
[8] As we have mentioned above, according to article 48(7) of the TpC, TS must contain only the load limit, the timeframes for the connection and the period of validity of the TS.
[9] Article 52.1(2) of the TpC (introduced by Law 276-FZ). At the same time, information about the possibility of making a connection (technological connection) to utility networks (except for power supply networks) including information about the load limits at the possible points of connection to such networks will be a part of the urban development plan for the land plot (see article 57.3(3)(15) of the TpC as amended by Law 276-FZ).
[10] See, for example, Resolution No. 787 of the Russian Government “On making a connection (technological connection) to heat supply systems, on non-discriminatory access to services in the sphere of heat supply and on amending and repealing certain regulations of the Russian Government” dated 5 July 2018.
[11] Article 52.1(3) of the TpC (introduced by Law 276-FZ).
[12] Article 57.3(2) and 57.3(3)(15) of the TpC (as amended by Law 276-FZ).
[13] “Information specified in the urban development plan for a land plot, except for the information set out in part 3(15) of this article, may be used for preparing design documentation and for obtaining a construction permit within three years from the date of it”. (article 57.3(10) as emended by Law 276-FZ).
[14] Before 1 September 2021, the provisions of the TpC regarding the granting of TS did not apply to the granting of TS for power supply: “The requirements of parts from 7 to 10 of this article do not apply to technological connection of capital construction facilities to power supply networks. The procedure for the corresponding technological connection to power supply networks is established by Russian legislation on the electric power industry (article 48(10.1)). An essentially similar rule has been in effect starting from 1 September 2021 (article 52.1(3) of the TpC as amended by Law 276-FZ). Therefore, the procedure for the granting of TS for power supply purposes will continue to be regulated by legislation on the electric power industry including by article 26 of Federal Law No. 35-FZ “On electric power industry” dated 26 March 2003 and by Resolution No. 861 dated 27 December 2004 "On approving the Rules for access to electric power transmission services without discrimination and for provision of these services, the Rules for access to real-time operations management services in the electric power industry without discrimination and for provision of these services, the Rules for access without discrimination to the services of an administrator of a trade system of the wholesale market and for provision of these services, and the Rules for technological connection to electric networks of electric power consumers’ devices receiving electric power, as well as facilities producing electric power and power grid facilities".
[15] “Technical specifications are granted for the purposes of concluding an agreement for connection (technological connection) free of charge, within seven business days at the request of parties specified in article 48(5.2) of this Code and parts 5 and 6 of this article, except for cases of technological connections to electric power networks” (new article 52.1(3) of the TpC introduced by Law 276-FZ).
[16] Article 5 of Law 276-FZ.