Production of thermal energy and distribution of thermal energy

A licensed (concession) trade for the production and distribution of thermal energy from sources with an installed capacity of a single source exceeding 50 kW that are not subject to a licence from the Energy Regulatory Office. A concession granted by the Trade Licensing Office in administrative proceedings, following an opinion from the State Energy Inspectorate, is required to do business; the licence comes into existence only on the day the decision granting the concession becomes final.

Conditions for operating

General conditions under Section 6 of the Trade Licensing Act: full legal capacity and a clean criminal record.
Professional qualification is assessed under Sections 7, 8 and 27 of the Trade Licensing Act and Annex No. 3, and is demonstrated by one of the following educational pathways:
- university education in the field of technical sciences + 3 years of experience in the field;
- higher professional education of a technical orientation + 6 years of experience in the field;
- secondary education with a school-leaving examination of a technical orientation + 6 years of experience in the field.
For sources with an installed capacity of up to 1 MW only, qualification may also be demonstrated as follows:
- secondary education with an apprenticeship certificate of a technical orientation + 3 years of experience in the field;
- a retraining certificate or another document evidencing professional qualification for the relevant activity issued by an accredited institution + 3 years of experience in the field.
The professional qualification may be met by a responsible representative under Section 11 of the Trade Licensing Act (the same person may act as responsible representative for no more than four entrepreneurs).
An opinion (statement) of the State Energy Inspectorate as the relevant body of state administration is required.
Mandatory third-party liability insurance: yes. Clean criminal record: yes. Medical fitness: no.
The licence comes into existence only on the day the decision granting the concession becomes final.
Responsible (relevant) authority: Ministry of Industry and Trade, Prague 1.

Examples of activities

Operation of a boiler room with an installed capacity of a single source exceeding 50 kW
Operation of a heating plant supplying heat to residential buildings
Production of thermal energy for an industrial complex
Distribution of heat through a network of heat mains to consumers
Operation of a block boiler room for a housing estate
Supply of heat from a building boiler room to several consumers
Operation of a building transfer station with heat distribution
Production and supply of hot service water from a central source

What this trade is and what it is for

The trade "Production of thermal energy and distribution of thermal energy, not subject to a licence, carried out from sources of thermal energy with an installed capacity of a single source exceeding 50 kW" authorises the production of heat and its distribution to consumers under conditions where the activity is not subject to a licence under the Energy Act. It is a licensed (concession) trade (Annex No. 3 to the Trade Licensing Act). It ranks among the most strictly regulated trades, because operating it requires a concession – a state permit on which the Trade Licensing Office decides in administrative proceedings.

Typically it covers the operation of boiler rooms and heating plants that produce heat and supply it to other entities (for example residential buildings, complexes or housing estates), and the operation of heat mains through which the heat is delivered to consumers.

What falls under this trade (and what does not)

It covers the production of thermal energy and its distribution from sources where a single source has an installed capacity exceeding 50 kW and where the activity is not subject to a licence from the Energy Regulatory Office (ERU).

It does not cover:

Production and distribution of heat that are subject to an ERU licence under the Energy Act (Act No. 458/2000 Coll.) – this activity is not carried out on the basis of a trade licence but on the basis of a licence.
Operation of a source where the installed capacity of a single source does not exceed 50 kW – such a source generally does not require a concession.
Installation, repairs and inspections of heating equipment or gas boilers – these fall under other (craft or regulated) trades.

The boundary between a trade and a licensed activity, as well as the specific capacity limits, should always be verified with the Trade Licensing Office and with the ERU according to the actual form of operation.

Conditions for obtaining it under the law

The applicant must meet the general conditions under Section 6 of the Trade Licensing Act – full legal capacity and a clean criminal record. Medical fitness is not required for this trade.

A professional qualification under Annex No. 3 to the Act is also required. The governing provisions are Sections 6 to 8 and 27 of Act No. 455/1991 Coll. The qualification can be demonstrated by one of the following options:

Education	Required experience
University in the field of technical sciences	3 years in the field
Higher professional, technical orientation	6 years in the field
Secondary with a school-leaving examination, technical orientation	6 years in the field

For sources up to 1 MW only, secondary education with an apprenticeship certificate of a technical orientation (3 years of experience) or a retraining certificate issued by an accredited institution (3 years of experience) is also sufficient.

If the entrepreneur does not personally meet the qualification, they may ensure it through a responsible representative under Section 11 of the Act – a person who is responsible for the proper operation of the trade and who meets the conditions. The same person may act as responsible representative for no more than four entrepreneurs.

A specific feature of this concession is that an opinion (statement) of the State Energy Inspectorate and the arrangement of mandatory third-party liability insurance are required. The relevant (responsible) authority is the Ministry of Industry and Trade.

How to obtain the trade step by step

Unlike notifiable trades, the licence does not come into existence by notification. The trade licence comes into existence only on the day the decision granting the concession becomes final. The procedure:

Complete the Unified Registration Form (URF) – the application for a concession.
Submit the application at any municipal Trade Licensing Office, electronically via the rzp.gov.cz portal, or at a Czech POINT branch.
Document the professional qualification (documents on education and experience, or the appointment of a responsible representative) and other supporting materials.
The Trade Licensing Office will request an opinion of the State Energy Inspectorate and, as part of the concession proceedings, will assess whether the conditions are met.
After the decision granting the concession becomes final, the office will enter you in the Trade Register.

The office generally decides on the application within 30 days. You will find a detailed general procedure in the guide How to set up a trade step by step.

Documents and fees

Application for a concession (URF).
Document evidencing professional qualification – education and experience, or documents relating to the responsible representative under Section 11.
Document evidencing a clean criminal record (generally arranged by the office).
Supporting materials for the opinion of the State Energy Inspectorate and proof of liability insurance.
Administrative fee for the application for a concession: CZK 1,000 on first entry into business, CZK 500 for a further concession.

Frequently asked questions

Do I need a concession, or an ERU licence?

It depends on the parameters of the source and on whether the activity is subject to a licence under the Energy Act. This trade concerns sources with the capacity of a single source exceeding 50 kW that are not subject to a licence. If the activity is subject to a licence, business is carried out on the basis of an ERU licence, not a trade.

When can I start doing business?

Only on the day the decision granting the concession becomes final. Merely submitting the application is not enough to commence the activity.

What if I do not meet the education or experience requirements?

You may appoint a responsible representative under Section 11 of the Trade Licensing Act who meets the professional qualification.

How long does processing take?

The Trade Licensing Office decides on the concession generally within 30 days of submission of the application; the time limit may be extended due to the requested opinion of the relevant authority.

Is insurance required?

Yes, for this trade third-party liability insurance is mandatory.