Urgent Conclusion of Energy Service Contracts is Required in the Housing and Budget Sector

24 october 2016

“Municipalities of all constituent entities of the Russian Federation urgently need to intensify work on executing energy service agreements and contracts, first of all, in the budget and housing sector,” said Mr. Dmitry Khomchenko, Expert of the Analytical Center, speaking at a plenary meeting of the first international municipal investment forum “Southern Dialog”. This is caused by the fact that currently, according to the expert, the situation with increasing energy efficiency and energy savings in these areas not just leaves much to be desired, but is simply disastrous in some regions, as no agreement or contract is signed there at all.

Earlier, speaking at the VI International Congress “Energy Saving and Energy Efficiency - Development Trends” Mr. Khomchenko said that concession agreements in implementing energy saving and better energy efficiency projects in a number of cases would have a significant advantage over the energy service agreements and contracts, and one of those advantages would be a longer validity period. In addition, it is quite possible and legally permissible to combine legal rules of concessions and energy service under one agreement.

Speaking at the round table entitled Energy Saving in the Budget, Housing and Utility Area. Key Objectives and Solutions held as part of the forum Mr. Khomchenko said that regional energy saving centers established and operating in many constituent entities of the Russian Federation must become coordinators and facilitators of the public policy in this area in their constituent entity. Besides, they can and should be independent pre-trial arbitrators of disputes between parties to the contracts, particularly in complex cases that require special engineering or narrow institutional qualification for their settlement.

The Expert believes that without implementing advanced technologies, widespread use of domestic energy-efficient materials and equipment it is impossible to solve problems of better energy efficiency in any sectors of the economy in the Russian Federation.