Energy Supply Contracts

Preparation and legal analysis of energy supply contracts

Article 539 of the Civil Code of the Russian Federation stipulates that under an energy supply contract, the energy supplying organization undertakes to supply energy to the subscriber (consumer) through the connected network, and the subscriber undertakes to pay for the energy received, as well as to comply with the mode of its consumption stipulated by the contract, to ensure the safe operation of the energy networks under its control and the serviceability of the devices and equipment used by it related to energy consumption.

Relations on energy supply issues are regulated by various regulatory acts of the Russian Federation, including:

1. paragraph § 6 of Chapter 30 of the Civil Code of the Russian Federation;
2. Federal Law of 26.03.2003 No. 35-FZ “On Electric Power Industry”;
3. Federal Law of 23.11.2009 No. 261-FZ “On Energy Saving and Improving Energy Efficiency and Amending Certain Legislative Acts of the Russian Federation”;
4. Federal Law of 27.07.2010 No. 190-FZ "On Heat Supply" and other regulatory acts.

It is important to note that an energy supply agreement is concluded with a subscriber if he has an energy-receiving device that meets the established technical requirements, connected to the networks of the energy supply organization, and other necessary equipment, as well as providing for energy consumption metering. At the same time, in accordance with the Decree of the Government of the Russian Federation of 04.05.2012 No. 442 “On the Functioning of Retail Electricity Markets, Full and (or) Partial Restriction of Electricity Consumption”, only one energy supply agreement can be concluded in relation to one energy-receiving device. Under the energy supply contract, the guaranteeing supplier shall be liable to the consumer (buyer) for failure to fulfill or improper fulfillment of obligations under the contract, including for the actions of the grid organization engaged to provide electric power transmission services, as well as other persons engaged to provide services that are an integral part of the process of supplying electric power to consumers.

To conclude an energy supply contract, as for any other contract, it is necessary to agree on its essential terms, which include:

1. subject of the contract;
2. conditions that are named in legal acts as essential or necessary (mandatory) for contracts of this type;
3. conditions that must be agreed upon at the request of one of the parties, even if they would be supplemented by optional rules.

The main subject of the energy supply contract is the obligation of the energy supply organization to supply energy to the subscriber through the connected network and the obligation of the subscriber to pay for the energy received, as well as to comply with the mode of its consumption stipulated by the contract, to ensure the safe operation of the energy networks under its control and the serviceability of the devices and equipment used by it related to energy consumption.

In order to agree on the subject of the contract, as a general rule, it is necessary to determine the name and quantity of the goods, and in the case of concluding an energy supply contract, it is important to determine what energy and in what quantity will be supplied to the subscriber. It should be noted that there are important features regarding the quantity of energy, for example:

1. the quantity of energy supplied to the subscriber and used by him is determined in accordance with the accounting data on its actual consumption;
2. agreement on the subscriber's right to change the quantity of energy received by him, determined by the contract, when energy is supplied in an uncoordinated quantity, the subscriber must reimburse the costs of receiving energy;
3. energy for household consumption is used by the subscriber (citizen) in the quantity he needs.

Among other things, the energy supply contract must agree on the mode of supply and the mode of consumption of energy, so for an electricity supply contract, the date and time of the start of the fulfillment of obligations under the contract, the point of energy supply under the contract are indicated. And in the heat supply contract, it is necessary to reflect the amount of heat load of the consumer's heat-consuming installations, indicating the load for each object and types of heat consumption.

Legal verification of the contract with the energy supply organization

To conclude an energy supply contract, it is necessary to install the necessary equipment for obtaining energy, connected to the networks of the energy supply organization, ensure correct accounting of energy consumption in accordance with the requirements of the current legislation.

Conclusion of an agreement with the energy supply organization is often accompanied by the conclusion of an agreement on the terms of the energy supplier without the right to possibly adjust the contract. However, there are often cases when the energy supply organization abuses its position when concluding an energy supply contract. In this regard, the correct approach when interacting with the energy supply organization is a legal review of the energy supply contract. As a result of the audit of the contract with the energy supply organization, issues may be identified that the energy supply organization had no right to include in the energy supply contract and that may significantly violate the rights of the energy consumer. Identifying the non-compliance of the contract with the established norms of legislation allows us to reduce the risks of charges in excess of the contract and law for the consumed volume of energy by the energy supplier, penalties not established by law, other conditions not established by the legislation of the Russian Federation, as well as to reduce or eliminate unnecessary payments for the energy consumer.

Analysis of real estate transactions for the possibility of concluding contracts with energy supply organizations

Concluding an energy supply contract for the supply of energy for real estate, as a rule, begins with studying the title documents for the real estate, then the availability of the equipment necessary for the transmission of energy is checked. As a general rule, the energy supply organization does not have the right to refuse to conclude an energy supply agreement, due to the public nature of the energy supply agreement, however, for example, the absence of energy receiving equipment becomes a significant obstacle to the transmission of energy and when concluding an energy supply agreement, in connection with which, when concluding an energy supply agreement, the energy supply organization checks the availability of special energy receiving equipment.

Legal services

1. Consulting on issues of concluding contracts in the field of energy supply
2. Checking concluded and concluded energy supply agreements for compliance with the requirements of current legislation
3. Making changes to energy supply agreements at the request of the subscriber and according to the conditions necessary for the subscriber
4. Representation of clients’ interests when concluding, amending, terminating an energy supply agreement