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LAW OF THE REPUBLIC OF MOLDOVA

of September 21, 2017 No. 174

About power

(as amended on 28-12-2023)

The parliament adopts this organic law.

This law partially shifts:

– Regulations (EU) the No. 2018/1999 of the European parliament and Council of December 11, 2018 for management of the energy union and activities for fight against climate change changing regulations (EU) to No. 663/2009 and (EU) No. 715/2009 of the European parliament and Council, the directive 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EC, 2012/27/EC and 2013/30/EC of the European parliament and Council, the directive of Council 2009/119/EU both (EU) 2015/652 and canceling Regulations (EU) No. 525/2013 of the European parliament and Council published in the Official magazine of the European Union by L 328 of December 21, 2018 in the version adapted and accepted by the Decision of Council of Ministers of Energy community No. D/2021/14/MC-EnC;

– Regulations (EU) the No. 347/2013 of the European parliament and Council of April 17, 2013 about the guidelines of trans-European energy infrastructure canceling the Decision No. 1364/2006/EU and changing regulations (EU) No. 713/2009, (EU) No. 714/2009 and (EU) No. 715/2009, published in the Official magazine of the European Union by L 115 of April 25, 2013 in the version adapted and accepted by decisions of Council of Ministers of Energy community No. D/2015/09/MC-EnC and No. 2021/11/MC-EnC taking into account provisions of Regulations (EU) No. 2022/869 about the guidelines of trans-European energy infrastructure changing regulations (EU) No. 715/2009, (EU) No. 2019/942 and (EU) No. 2019/943 and directives 2009/73/EU and (EU) 2019/944, and No. 347/2013 canceling Regulations (EU).

Chapter I General provisions

Article 1. Subject of the law

This law establishes the legal base of the organization, regulation and ensuring effective and reliable functioning of sectors of power.

Article 2. Purpose and scope of the law

(1) the Purpose of this law is:

a) creation of the legal base of the organization and implementation of activities in sectors of power in the conditions of availability, permanent availability, reliability, uninterruptedness, competition, quality and transparency;

b) establishment of the main conditions necessary for ensuring independence of regulating authority;

c) regulation of legal relationship between the energy companies, between the energy companies and consumers, users of system, and also between the energy companies and the central industry bodies, other bodies of the central public management, regulating authority, other bodies of the public power, and also bodies of local public authority;

d) creation of necessary conditions for restriction of exclusive activities, for liberalization of energy markets, and also for development of the competition on energy markets;

e) establishment of the basic principles of providing consumers with high-quality energy on fair, transparent and non-discriminatory conditions;

f) creation of the legal base of ensuring energy security of the country;

g) creation of the mechanism of regulation of power and actions in the field of climate;

h) creation of the regulatory base for assistance to development of projects of energy infrastructure with cross-border impact.

(2) Operation of this law extends on:

a) organization and functioning of regulating authority, and also condition of implementation of its activities;

a-1) development of program documents in the field of power;

b) state energy supervision;

c) the organization and implementation of activities in sectors of power;

d) energy accounting;

e) safety and protection of objects of power;

e-1) development of projects, of common interest, within Energy community, and also projects which are of mutual interest;

f) consumer protection.

Article 3. Basic concepts

For the purposes of this law the following basic concepts are used:

the consumer – the final consumer of the electric power, natural gas, the consumer of heat energy, the consumer of other types of energy;

developer of the project – developer of the project of energy infrastructure which can be:

a) the operator of the transferring system, the operator of distributive system or other operator or the investor developing the project of common interest within Energy community, or the project which is of mutual interest between the Republic of Moldova and the member state of the European Union;

b) person who based on the agreement on representation is authorized to represent or the group consisting of operators of the transferring systems or operators of distributive systems, or other operators either investors or the mixed group consisting of the corresponding persons, and who is capable to assume legal and financial liabilities on behalf of the members of group who signed the agreement on representation;

the distributor of heat energy – the heat power company performing activities for distribution of heat energy according to this law and the Law on heat energy and promotion of cogeneration No. 92/2014;

the measuring equipment – the legitimized and confided device or system for measurement of amount of the made, exported, imported, transferred, distributed, stored, delivered and/or sold energy;

power – the industry of national economy including the following sectors: electrical power, heat power, sector of natural gas, sector of oil products and sector of solid and liquid fuel;

energy – energy product of any kind, fuel, the electric power, heat energy, energy from renewable sources or any other type of energy;

energy infrastructure – the physical equipment or installation belonging to the categories of energy infrastructure provided in appendix which are located in the Republic of Moldova or provide communication between the Republic of Moldova and other states entering into Energy community and/or between the Republic of Moldova and member states of the European Union;

the energy company – the physical person or the legal entity registered in accordance with the established procedure in the Republic of Moldova as the company performing at least one of the types of activity regulated by the Law on the electric power No. 107/2016, the Natural Gas Act No. 108/2016, the Law on heat energy and promotion of cogeneration No. 92/2014, the Law on promotion of energy use from renewable sources No. 10/2016 and the Law on the market of oil products No. 461/2001 (further – the sectoral laws);

electrotechnical laboratory – the laboratory authorized by body of the state energy supervision, given the right to carry out preventive and commissioning measurements and testing in power supply networks and electroinstallations;

power objects – production installations, power plants, heating plants, networks, installations, devices, mechanisms, the equipment and devices which jointly with buildings and rooms in which they are established are used for investigation, production, cleaning, production, transfer, distribution, storage and/or sale of energy;

tasks of Energy community in the field of energy and climate for 2030 – achievement of the indicators calculated on the basis of the purposes and tasks established at the level of each State Party of Energy community, as follows:

– the minimum reducing at the internal level of emissions of greenhouse gases in scales of all economy in comparison with 1990 which shall be reached by the end of 2030;

– achievement of the minimum share of the energy from renewable sources consumed in Energy community – in 2030;

– accomplishment of the minimum main objective on increase in energy efficiency – in 2030;

– accomplishment of other subsequent tasks;

the system operator – the operator of the transferring system, the operator of distributive system of electric utility sector, the operator of the transferring system, the operator of distributive system of the sector of natural gas having the license for implementation of the corresponding types of activity according to the Law on the electric power No. 107/2016 and the Natural Gas Act No. 108/2016;

politicians and measures – set of the tools promoting realization of the tasks established in the national integrated plan for energy and climate, and/or accomplishment of obligations assumed based on Items a) and b) parts (2) article 4 of the Framework convention of the United Nations about climate change ratified by the Resolution of Parliament No. 404/1995, including those tools which main task is not restriction and emission reduction of greenhouse gases or change of power system;

the project, of common interest within Energy community (ES project), – the project necessary for realization of the directions and tasks in the priority areas of energy infrastructure provided in appendix and included in the list of projects of Energy community approved by Council of Ministers of Energy community;

the project which is of mutual interest (VI project) – the project advanced by the European Union together with the third states based on letters on support from the governments of directly affected states or based on other agreements concerning installations which enter one of the categories of energy infrastructure provided by the subitem and) Item 1, the subitem and) Item 3, subitems and) or c) appendix Item 5 which promotes realization of tasks of the European Union in the field of energy and climate for 2030 and tasks of the European Union on climatic neutrality for 2050 and which is included in the list of projects of the European Union;

commissioning – commissioning of the power station after completion of its construction according to the project.

Chapter II Administrative competences. State energy supervision. The state technical supervision in the field of industrial safety

Article 4. Competence of the Government

(1) For the purpose of ensuring functioning and development of sectors of power the Government:

a) determines state policy in the field of power and the priority directions of its development;

b) approves the energy strategy and other program documents, stipulated in Article 7-2, according to the procedure of departure from part (5) article 24 of the Law on regulations No. 100/2017;

c) approves state programs of development in the field of power according to the competence;

d) creates necessary premises and conditions of development, effective and steady functioning of sectors of power;

e) ensures energy security of the state;

f) approves action plans in emergency situations according to the sectoral laws;

g) establishes minimum necessary quantity of reserves of fuel for the power plants and heating plants using fossil fuel;

h) advances interests of sectors of power at the international level;

i) advances regional and international cooperation in sectors of power.

(2) For ensuring sustainable development of sectors of power, and also for strengthening of homeland energy security the Government has the right to create special funds or investment funds.

(3) the Government performs also other powers established by this law and the sectoral laws.

Article 5. Powers of the central industry body of public management in the field of power

(1) the Central industry body of public management in the field of power (further – the central industry body in the field of power) has the following powers:

a) develops and pursues state policy in the field of power;

a-1) develops and advances the project of regulations on the mechanism of regulation of power and actions in the field of climate;

a-2) develops and implements the draft of the energy strategy and the national integrated plan for energy and climate;

b) develops perspective energy balance of the state and publishes it on the official web page;

c) develops state programs of development in the field of power;

d) develops and advances legislative and regulations in the field of power, including in the context of harmonization of the national legal system with the European Union law;

e) performs monitoring of implementation of the energy strategy and the national integrated plan for energy and climate, state programs of development and investments into the fields of power, develops the national integrated report on energy and climate, stipulated in Article 7-3;

e-1) performs monitoring of implementation of regulations in the field of power;

f) ensures energy security of the state by means of monitoring and coordinating of development and proper functioning of objects of power;

g) advances within the competence regional and international cooperation in the field of power, including on strategic purchases of energy resources, investment attraction, prolongation of intersystem connections and integration of the markets of sectors of power industry of the Republic of Moldova into the regional and international markets;

h) manages state-owned property in the field of power.

i) - ceased to be valid.

(1-1) In case of development of provision, stipulated in Item a 1) of part (1), the central industry body in the field of power cooperates with the central industry body of public management for natural resources and the environment, other competent authorities.

(2) the Central industry body in the field of power performs also other powers provided by this law and the sectoral laws.

Article 6. Competence of bodies of local public authority

(1) Organa of local public authority promote safe and effective providing consumers of the respective settlements with energy.

(2) are Within the competence of bodies of local public authority:

a) construction of facilities of power of local value, including system of lighting;

b) the solution of questions of provision of sites for construction and operation of objects of power;

c) transfer to system operators, distributors of heat energy in use of the sites necessary for construction and placement, including for reconstruction and transfer, the networks of electricity transmission and/or distribution power supply networks transferring and/or distribution networks of natural gas, thermal networks, and also for their operation, servicing, recovery or upgrade;

d) allocation of financial resources within funds of local budgets for development in the settlement of system of providing consumers with energy, and also systems of public lighting;

e) coordinating of works on mitigation of consequences of emergency situations on power objects;

f) provision within means of local budgets to consumers in the settlement of compensations on energy payment;

g) ensuring operation, servicing, recovery, upgrade, construction and, on circumstances, reconstruction of the objects of power which are in public or private property of administrative and territorial units.

(3) Organa of local public authority also other powers established by this law and the sectoral laws perform.

Article 7. The state energy supervision and the state technical supervision in the field of industrial safety

(1) the State energy supervision is provided with National regulation agency in power.

(2) the State technical supervision in the field of industrial safety is exercised by National inspectorate for technical supervision according to the procedure and on the conditions established by the Law on safe functioning potentially of hazardous production facilities and technical installations No. 151/2022.

Chapter II-1 the Mechanism of regulation of power and actions in the field of climate

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