Within the topic of operation of secondary heat distribution systems in the Bratislava districts of Ružinov and Staré Mesto, we addressed two questions to the Slovak Heat Producers Association (SZVT).
SZVT is a professional association of 110 heat producers and suppliers from all over Slovakia. Its mission is to promote the development of safe, reliable, environmentally friendly heat supply from district heating systems in Slovakia at a reasonable price for consumers and at the same time to protect acceptable conditions for business in this area. SZVT thus contributes to the achievement of the objectives to which Slovakia has committed itself in the adopted Energy Security Strategy.
Answers to questions by Ing. Stanislav Janiš, Chairman of the Board of SZVT
Question 1:
Recently, the issue of the operation of secondary heat distribution systems in Bratislava/MČ Staré Mesto and Ružinov/ and the supply of heat to the residents has been more and more discussed in the media. There were even harsh words from the representatives of the municipal districts with the participation of the Minister of Economy “the operator of the secondary heat distribution system is just an intermediary, he unnecessarily adds a margin of up to 26% and then it is more expensive for the residents”. Can you explain to us in more detail how this is the case with the increase in the price of heat and the profit for the secondary distribution system operator?
If the operator of the secondary thermal infrastructure is only an intermediary, then SEPS, a.s. is also an intermediary, as well as electricity distribution companies, Eustream as a gas transporter, and SPP distribution as a gas distributor … Of course, this is not the case. The modern way of saying that the claim that the secondary heat network is just an intermediary is HOAX. Because in order to get the heat transfer medium from the source (hot water) through the primary distribution lines of MH Holding to the specific place of consumption in the required thermal and pressure parameters (hot heating water in radiators and hot water for normal consumption), heat transfer (heat exchanger) stations and secondary heat distribution lines from the heat transfer stations to the specific points of consumption (apartment buildings, schools, kindergartens …) are needed…) A heat transfer station is a thermal-technical device in which the heat from the primary medium (e.g. hot water) is transformed into the parameters of heating water and domestic hot water.
Both heat prices, whether from the primary heat infrastructure or from the secondary heat infrastructure, are regulated by the Regulatory Office (URSO). If the operator of the secondary heat infrastructure had no costs associated with it, what would the regulator regulate it for? He should probably issue a pricing decision that his costs are 0.0 Euros.
Just as MH Holding has costs with its primary heat infrastructure, the secondary heat infrastructure operator has costs with its secondary network, this is not a margin, it is a real cost reflected in heat prices. MH Holding should be asked if it has costs associated with its primary heat infrastructure in the price of heat. Of course it does, and it goes without saying that it has them reflected in the heat price as well. And if MH Holding were also the owner of the secondary pipelines, the costs of these would also be reflected in the price of heat, which would automatically be higher than MH Holding’s price today.
Moreover, MH Holding produces little heat in Bratislava and buys heat from producers and then only transports it through its primary infrastructure to the transfer stations of the secondary infrastructure. In Trnava, MH Holding buys 100% of its heat from SE, a.s., it is a “pure intermediary” of heat. So why does it add its not small “margin” to the price from SE, a.s. and sell the heat on?
According to the philosophy of MH Holding, it is itself a much bigger “middleman”, which adds a “margin” to the purchased heat than the companies operating the heat infrastructure in the Old Town or Ružinov.
Question 2:
MH Heat Holding/formerly BAT/ is offering the boroughs the price of heat it applies today at the end of the primary distribution line. The offer also includes a rent for the operation of the secondary heat distribution lines of EUR 330 000/year and a renewal investment of EUR 12 million. Can you explain to us whether the current price of heat from MH TH will remain at the current level in the future/unless we count on an increase in the price of input energy/? How will the costs of operating the secondary heat distribution systems – operating costs, rent, investments – be reflected in the heat price in the future?
In the event of MH Holding taking over the operation of the secondary thermal infrastructure, the costs of its operation will not be lost. They will remain. What MH Holding is offering is that for their selected districts (BA Staré mesto and BA Ružinov) the costs of operating the secondary network, including payment for its lease, including investments, will be passed on by MH Holding to its customers in other districts. Simply put, all heat consumers of MH Holding outside the municipalities of Staré mesto and Ružinov will pay in the price of heat both the operation and the rent and also the investments in the operation of the secondary heat infrastructure of these two urban districts. It is necessary to ask the affected Bratislava citizens whether they agree with this. Well, probably not, but they do not know about this, because they only talk about the fact that MH Holding will offer lower prices to the two selected municipalities, but they do not talk about who will pay for the costs of operating the secondary network.
The whole philosophy of MH Holding is purposeful, without a transparent competition, without discussion on the issue, to directly acquire for 20 years the operation of two thermal farms damages the image of the heating industry as such.
If what the MC and MH Holding claim were true, why don’t the MCs set up their own companies to run their heat management? However, the operation costs nothing, the purchased heat from MH Holding is transported to their consumers without a “margin”. They won’t do it because it doesn’t work that way socialistically anymore.