The current Act specifies that where a heat producer intends to supply a business entity with heat, he/she shall conclude a supply contract as prescribed by Ordinance of the Ministry of Trade, Industry and Energy and that the business entity shall supply users with heat in a supplied district, for which he/she has obtained a license.
However, under the purpose of the current Act, which recognizes the exclusive supply rights of business entities and strictly regulates transactions between heat producers and business entities, although it is reasonable to interpret the provision as no direct transaction between a heat producer and a user is permitted within an area to be supplied, since there is no explicit provision about whether a heat producer may supply heat directly to users in an area to be supplied, there is confusion in the interpretation of the laws.
Therefore, this amendment aims to clarify the purpose and meaning of the Act by explicitly stipulating that no heat producer shall directly supply users in an area to be supplied with heat (Article 16 (3)).

Article 16