Fundamental decision of the Federal Court of Justice on district heating supply: the state capital Stuttgart may, in the future, select the operators of the district heating network in a transparent and non discriminatory manner

The Federal Court of Justice (BGH) has made a groundbreaking decision in the legal dispute over the district heating network in Stuttgart (file ref.: 101/20). This decision means that, even though the state capital is not entitled to take ownership of the district heating network, it will have the right to choose the owner and operator of the network in a transparent and non-discriminatory selection process. Thus, the court confirmed the selection process already initiated by the city in 2012.

The judgment of the Federal Court of Justice has far-reaching significance for the district heating supply in Germany since provisions now apply that are similar to those under sec. 46 of the Energy Industry Act (Energiewirtschaftsgesetz – EnWG) regarding electricity and gas distribution grids.

Through the selection process, cities and municipalities are given the opportunity to have a say in the district heating supply. Possible selection criteria include which bidder is prepared to commit to implementing the municipal heat planning and the municipality’s climate protection targets and to making the necessary investments in the district heating network.

Matthias Albrecht, partner at BBH’s Munich office and lead lawyer in this case, welcomes the judgment: “This judgment considerably increases the options of cities and municipalities for shaping the district heating supply. It enables transparent selection processes in which municipalities can choose the most suitable owner and operator for the district heating network. This encourages investment in the modernisation and expansion of the grids, which in turn will drive forward climate protection.”

The BBH group is a leading provider of advisory services for energy and infrastructure companies and their customers. Energy and supply companies, particularly public utilities, municipalities and local authorities, industrial companies and international groups are among its core clients. The BBH group advises these and many other companies and organisations in all legal matters and also assists them with business and strategic advice.

Contact:

Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de

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