Natalia Diatlova told the Russian International Economic Forum about the peculiarities of legal regulation of PPP projects in the field of municipal energy

Natalia Diatlova - Partner

Within the framework of the business program of the VII Russian International Energy Forum, representatives of the authorities and businesses discussed possible ways to achieve a balance in the signing of concession agreements in the housing and utilities sector.

Natalia Diatlova, Partner and Head of Maxima Legal’s PPP Practice, spoke about the specifics of legal regulation of PPP projects in the municipal energy sector based on the example of heat supply.

In particular, Natalia reminded that since June 1, 2017 the Russian Federation subject has also been entitled to act as a party to the Agreement. “A constituent entity of the Russian Federation is a strong and interesting player. In addition, how it is often in the concession agreement the main obligation to compensate the concessionaire for losses in the event of termination of the concession agreement is imposed on the concessionaire. He takes into account the provisions of this concession agreement when setting tariffs during the implementation of the concession agreement, and often compensates the concessionaire for lost income. Its role is no less important than that of a municipality, which, as a public party, performs its basic functions of a concessor, including transferring the object to the concessionaire, transferring the land plot to the concessionaire and changing the concession agreement, if required and possible,” the expert noted.