General prerequisites
An age of at least 18, legal capacity, personal integrity, and professional competence of the licence applicant or the appointed responsible representative are understood to be the general prerequisites for licence grant.
Personal integrity of the licence applicant and the responsible representative
Under the Energy Act (Section 5(1) and (2)), the requirement for personal integrity applies to the following individuals:
- the licence applicant who is a natural person;
- all members of the governing body (all directors) of the licence applicant who is a juristic person;
- all members of the governing body (all directors) of the juristic person who is a member of the governing body (directors) of the licence applicant;
- the responsible representative of the licence applicant (see below on the responsible representative).
For this purpose, the applicant provides a Criminal Record Certificate showing the situation as at the day of filing the application (the original or a notarised copy) or the Details for Obtaining Information from Criminal Records form (see here).
If any of the above persons is a foreign national, under Section 7(4)(b) of the Energy Act ERO requires a certificate issued by the criminal records authority of the country concerned or an equivalent document issued by an authority of the country of which the individual is a national as well as of the country in which the individual last lived continuously for at least 6 months during the course of the last 3 years. If the country does not issue such documents, the individual must deposit a statement of personal integrity before the competent authority of the country. These documents or statement must not be older than 6 months; they must be originals or notarised copies (in the required cases, they must bear a legal certification proving the verification of the signature and stamp on the document for the purpose of using it in another country, for example, an apostille) and must be supplied together with an officially certified translation into Czech.
Professional competence (of the licence applicant or the responsible representative)
The requirement for professional competence must be met
- by the licence applicant who is a natural person; if the applicant does not meet the conditions for being a responsible representative the applicant must appoint a responsible representative;
- by the licence applicant who is a juristic person; such applicant must appoint a responsible representative at all times.
The applicant’s or the responsible representative’s professional competence does not have to be evidenced for electricity generation from renewable sources having an installed capacity of up to 50 kW inclusive.
The following education and work experience can evidence professional competence:
- Full tertiary education in an engineering discipline and at least 3 years of work experience in that area, or full secondary technical education in an engineering discipline with a General Certificate of Secondary Education (GCSE; Abitur/Matura in German, maturita in Czech) and at least 6 years of work experience;
- In respect of electricity or thermal energy production with an installed capacity of up to 1 MW inclusive and a self-standing electricity distribution installation or thermal energy distribution installation with an installed capacity of up to 1 MW inclusive, vocational training in that area and at least 3 years of work experience in the area, or a certificate of retraining for the operation of small energy generating plants or a similar certificate issued in another country (this retraining and certificate can be obtained from Svaz podnikatelů pro využití energetických zdrojů (Association of Businesses for Energy Source Utilisation)) will suffice.
Professional competence must be documented by a notarised copy of the diploma or GCSE, vocational certificate or another document proving the achieved level of education, issued by the relevant school in compliance with the legislation, and a confirmation of employment (a document proving work experience, issued by the employer under Section 313 of the Labour Code) or an employee reference letter or in some other trustworthy manner if the individual has acquired the required work experience in an employment or similar relationship; in the case of the individual’s own business, by a certificate issued by the Trades Licences register and a tax return or by another document clearly showing that the applicant or the responsible representative has carried on business activities in the area for the time required by the Energy Act, or in another manner that does not raise legitimate doubts about professional competence.
Responsible representative
Responsible representatives must meet the general prerequisites and possess personal integrity and professional competence (see above for all of this). ERO approves the appointment of a responsible representative for the licensee.
Append the following to your application:
Form B Appointment of a Responsible Representative, and the Statement of the Responsible Representative form (available here).
Form B must be signed by the authorised person and the Statement of the Responsible Representative form must bear a notarised signature of the responsible representative. A person authorised to act, as recorded in the Commercial Register, may appoint a responsible representative; otherwise, under a power of attorney.
A member of the Supervisory Board or of another supervisory body of the juristic person must not be the juristic person’s responsible representative on account of a potential conflict of interests.
If the responsible representative terminates their activities or no longer meets the conditions for holding this position, the licence holder must nominate a new responsible representative within 15 days of the moment when the responsible representative terminated their activities or ceased to meet the conditions for holding this position. Failure to meet this requirement is an administrative offence under Section 91(1)(a) of the Energy Act. Pending the approval of the new responsible representative, the licence holder is responsible for the performance of the licensed activity.
Relationship to the installation to be used for operating the licensed activity
The applicant must prove their legal title or right of use to the energy installation that is to serve for operating the licensed activity. Where the licence applicant is not the owner of the energy installation, the applicant must also provide consent of the owner of the energy installation to the use thereof for the purpose specified by the Energy Act at least for the period for which the licence is to be granted; in the case of doubt, for an indefinite period.
The model form of consent for photovoltaic plants is available on Forms and model documents; it has to be modified for other energy installations.
Where more than one person own the energy installation (co-ownership of a ‘shared item’), the co-owners who will not operate the energy installation must give their consent in writing to the use of the energy installation by the operating co-owner for the purposes specified in the Energy Act. The co-owners’ consent is required when the licence applicant is not the majority owner, and thus is not authorised to handle the shared item independently.
The proprietary relationship to the installation must be documented by a title deed or a right of use document, which is understood to be, for example, a purchase agreement, a contract for work, a deed of gift, an agreement on the purchase of an enterprise or a part thereof, a lease agreement, a rental agreement, a statement on a contribution to a company together with the relevant formation document and, if applicable, the relevant amendment thereto, etc.
The legal title to an energy installation is evidenced by
- a copy of the entry in the land register if this title is registered in the land register, or
- a contract or other document proving the acquisition of the title if the title is not registered in the land register.
The right of use to an energy installation is evidenced by
- a copy of the entry in the land register if the right to use the real estate follows from the entry in the land register, or
- a contract or other document under which the applicant has acquired the right to use the energy installation, if the right is not registered in the land register.
Where the legal title or the right of use to the energy installation cannot be documented as above they can also be evidenced in a different manner that does not raise legitimate doubts. Where the applicant is not the owner of the energy installation they must, upon request, also document the owner’s legal title as above described.
Technical requirements
Technical requirements are deemed satisfied for an energy installation the safety of which has been proved to the extent and under the conditions laid down in laws and regulations on occupational health and safety and in accordance with technical documentation. Where the energy installation is a construction, the licence applicant also has to prove their right to use or otherwise operate the construction.
Applicants prove the satisfaction of technical requirements for energy installations by a document evidencing the safety of the energy installation, which is:
- For energy installations being newly commissioned, a report on the initial inspection of the energy installation if a separate piece of legislation or a technical standard requires an initial inspection before commissioning.
- For operated energy installations, a report on initial inspection if no obligation to carry out regular or operating inspections of the energy installation has arisen; otherwise, a report on a regular or operating inspection of the energy installation, or proof of a test of the energy installation unless a separate piece of legislation or a technical standard requires an inspection of the energy installation or a test of the energy installation.
- The inspection report must contain, in particular, the following:
- Specification of the inspection type (initial, periodical or extraordinary inspection);
- Specification of the extent of the inspected electrical installation;
- Dates of inspection start and end; the preparation and delivery of the inspection report;
- The name and signature of the inspection engineer with their registration number;
- The conclusion of the inspection report must state whether the electrical installation is operable in terms of safety. Where the inspection reveals defects, the inspection report must specify the provisions of the standard or other regulation that the defect violates.
- In the case of low-pressure boiler rooms, record of an expert review of the boiler room.
- Only a person familiar with the regulations on the operation, manning and maintenance of boiler room equipment and related regulations, such as a heating engineer, a boiler inspection engineer, or a power engineer may carry out the review. Such person must write down a record of the review. Reviews focus on the condition of the boiler room, the boiler’s condition inside and outside, and the condition of the safety system, burners, pumps, tanks, water treatment equipment, coal feeding and ash removal equipment, flue ducts and chimneys. (Public Notice on the safety of work in low-pressure boiler rooms)
The document evidencing the safety of the energy installation can be replaced with an expert opinion attesting to the safety of the energy installation.
On the day on which they are provided to ERO, the documents proving the completion of an inspection, an expert review or a test or an expert opinion under the preceding points must not be older than 6 months unless a separate piece of legislation or a technical standard lay down a different period of time for their preparation.
The documents specified in the preceding points must attest to the safety of the whole energy installation. In respect of applications concerning larger-capacity energy installations, the applicants usually document their safety by several inspection reports.
When correcting already supplied inspection reports please differentiate the corrected version from the original version by changing the identifiers: two entirely identical inspection reports (date and number of the report, etc.) containing different data are illogical and may cause doubts as to their credibility.
If the energy installation contains products the conformity of which has been assessed under the law on technical requirements for products and amending certain laws, as amended, the CE Marking on the products proves their safety.
Applicants also attach the following to their applications for a licence for energy installations, by type:
- Photovoltaic plants: The sum of the rated capacities of each of the PV panels and their type (the number of panels times the rated output of a panel);
- Cogeneration units (combustion): A photograph of the rating plate on the set and its technical data sheet;
- Hydroelectric power stations: A photograph of the rating plate on the alternator;
- CCGT plants: A photograph of the rating plate on the whole turbine set; in its absence, a photograph of the rating plate on the alternator;
- Wind power plants (turbine): A photograph of the rating plate on the alternator and the technical data sheet;
- Thermal power stations (water steam, ORC): A photograph of the rating plate on the whole turbine set; in its absence, a photograph of the rating plate on the alternator;
- Boilers: A photograph of the rating plate on the boiler or its ‘passport’, and the technical data sheet (where the output is stated in tonnes of steam per hour, the applicant provides output converted to MW).
Furthermore, applicants prove satisfaction of technical requirements:
- By a decision permitting water use and disposal if under the Water Act the permission to use and dispose of water is a precondition for operating the energy installation;
- By a decision permitting the relevant mining activity if under the law on mining activities, explosives and the state administration of extraction, the permission of the relevant mining activity is a precondition for operating the energy installation.
If the energy installation is a construction under the Construction Act, the applicant also proves satisfaction of technical requirements for the energy installation as follows:
- In the case of an energy installation used early, the planning office’s permission to use the construction early before its completion.
- In the case of an energy installation in trial operation:
- the building permit if the planning office required trial operation in its building permit, or
- the planning office’s decision to permit or require trial operation.
- In the case of other energy installations being newly commissioned:
- a zoning decision in the case of a construction or installation that does not require a building permit or notification, or
- a zoning approval in the case of a construction or installation that does not require a building permit or notification, or
- a public contract in the case of a construction or installation that does not require a building permit or notification, or
- a zone control plan substituting for the relevant zoning decision in the case of a construction or installation that does not require a building permit or notification, or
- a notification to the planning office of the intention to start using the construction together with the applicant’s statement that the planning office has not prohibited the use of the construction, or
- approval for use (in Czech kolaudační souhlas).
- In the case of operated energy installations:
- a zoning decision in the case of a construction or installation that does not require a building permit or notification, or
- a zoning approval in the case of a construction or installation that does not require a building permit or notification, or
- a notification to the planning office of the intention to start using the construction together with the applicant’s statement that the planning office has not prohibited the use of the construction, or
- the planning office’s decision upon completion (in Czech kolaudační rozhodnutí) or its approval for use (in Czech kolaudační souhlas) granted under the Construction Act, or as-is documentation for the construction, or simplified documentation, or
- some other document issued by the planning office or in another trustworthy manner proving the satisfaction of the conditions for using or operating a construction under the Construction Act.
All documents issued by planning offices and other administrative authorities must be provided with the ‘confirmation of finality’ affixed to them, if possible.
In the case of structural alterations required for installing equipment for electricity generation using a renewable energy source with a total installed capacity of up to 50 kW, ERO does not require to see the building permit or notification in cases where the planning office does not require such notification, building permit or other document. Otherwise, the licence applicant must provide such document to ERO without any request.
If the licence has been granted on the basis of the planning office’s document showing the applicant’s authorisation to use or otherwise operate the energy installation and having a limited period of validity (such as permission of early use or permission of trial operation), the applicant subsequently must, before the end of that period, provide the approval for use, or another document extending the authorisation to use or otherwise operate the energy installation.
Financial standing
For licence grant, under the Energy Act (Section 5(3)) the applicant must prove their financial standing for ensuring the operation of the licensed activity.
Financial standing does not have to be documented for the following activities ONLY:
- Electricity generation if the installed electrical capacity of the installation is lower than 200 kW;
- Thermal energy production if the installed thermal capacity of the installation is lower than 1 MW.
Where the licence is to be changed (typically when an additional generating source is erected in the generating plant) and the new sum of the installed capacities of the sources in the plant (not under the entire licence) exceeds 200 kW or 1 MW inclusive, financial standing must be documented.
Financial standing is laid down in the Energy Act (Section 5(6)). Under the first sentence of this provision, financial standing is understood to be the applicant’s ability to finance the operation of the activity for which a licence is required, and the ability pay the current and future liabilities for at least 5 years.
The manner of documenting financial standing is set out in the licence public notice (Section 2). The applicant documents their financial standing as follows:
- By the amount of available funds:
- monthly bank account statements showing the opening and closing balances over the last 12 preceding calendar months or for a shorter period if the applicant has not carried on business for at least one year, or
- a letter from the bank with which the applicant keeps an account on the applicant’s ability to pay their financial liabilities and on movements in the account over the last 12 preceding calendar months or for a shorter period if the applicant has not carried on business for at least one year, or
- a loan agreement or other similar agreement if the applicant’s own funds do not suffice (in this respect, the applicant has to prove that the borrowed money is tied to their business in the required energy industries; where the applicant borrows from a related party within the meaning of the income tax law, the applicant must document the amount of the available funds in accordance with the preceding two points (bank account statement or a letter from the bank) for this person as well);
- By tax records or records of income and expenditure under the law on income tax, or the latest financial statements, including notes thereto, in the summary format, where the applicant carried on business in the preceding accounting period; the latest full financial statements must be provided in cases where the applicant is obliged to have them audited;
- By a business plan containing a description of the applicant’s long-term ability to finance the licensed activity;
- By a financial forecast containing the expected costs of and revenues from the licensed activity; the content of the applicant’s financial forecast is set out in Annex 22 to the licence public notice, as amended;
- By output from the insolvency register reflecting the status as at the day of filing the application, that over the last 3 years until the day of filing the application a court did not cancel receivership against the applicant on the grounds that the asset distribution order had been carried out, or a court did not reject an insolvency petition on the grounds that the debtor’s assets would not suffice to pay the costs of the insolvency proceedings, or a court did not decide to cancel receivership on the grounds of the debtor’s assets being entirely insufficient. Where the applicant is not incorporated or recorded in the Commercial Register or the Trades Licences or similar register, or did not carry on business over the last 3 years, they evidence these facts in another manner that does not raise legitimate doubts, for example, by the applicant’s declaration;
- By confirmations (originals or certified copies) that for the applicant:
- no arrears are recorded by the Financial Administration of the Czech Republic, reflecting the status as at the date of application filing, and
- no arrears are recorded by the Customs Administration of the Czech Republic, reflecting the status as at the date of application filing, and
- no arrears are recorded concerning the contributions to social security and contributions to the government’s employment policy, or penalties thereon, issued by the competent District Social Security Administration, reflecting the status as at the date of application filing;
- In a manner that does not raise legitimate doubts, such as the applicant’s statement that in respect of the applicant no arrears are recorded on premiums towards public health insurance or other arrears on fines and charges, which cannot be evidenced by the documents issued under the preceding two points.
- The licence applicant does not have financial standing if arrears on taxes, customs duties, charges, social security contributions, contributions to the government’s employment policy, or premiums towards general health insurance, and on fines, are registered in respect of the applicant.
The applicant does not have financial standing if over the last 3 years a court cancelled receivership against the applicant on the grounds that the asset distribution order had been carried out, or a court rejected an insolvency petition because the debtor’s assets would not suffice to pay the costs of the insolvency proceedings, or decided to cancel receivership on the grounds of the debtor’s assets being entirely insufficient.
Imposed penalties are also regarded as arrears under the applicable legislation. The existence of arrears is not affected by arrangements for a payment schedule.
Where a Czech juristic person that it not yet registered in the commercial register applies for a licence, the non-existence of arrears is documented by that person’s statement. The opening balance sheet cannot be requested from newly established juristic persons.
Where a foreign juristic person that has not yet set up an organisational unit (component) in the Czech Republic applies for a licence, it documents the non-existence of arrears by confirmations issued by the competent authorities to its parent company.
Where a foreign juristic person that has set up an organisational unit (component) in the Czech Republic applies for a licence, it also documents the non-existence of arrears by confirmations issued by the competent authorities to its parent company.
