LAW OF UKRAINE

of October 16, 1997 No. 575/97-BP

About power industry

This Law determines legal, economic and organizational basis of activities in power industry and governs the relations connected with production, transfer, distribution, supply and energy use, ensuring energy security of Ukraine, the competition and consumer protection and workers of industry.

Section I. General provisions

Article 1. Determination of terms

In this Law the stated below terms are used in the following value: energy - electrical or heat energy which is made on power generation facilities and is the products intended for purchase and sale;

Production of elements of the equipment of power generation facility - the activities connected with production which include accomplishment of sufficient level of production and technology operations by results of which the classification code of goods according to UKT foreign trade activities at the level of any of the first four signs changes at the same time the transactions performed in production process shall not be simple assembly transactions according to provisions of the customs legislation. The bearing designs of finished goods shall be made in Ukraine with acquisition of the status of origin from Ukraine;

power industry - the industry of economy of Ukraine providing consumers with energy;

energy security - the power industry condition guaranteeing technically and economically safe satisfaction of the current and perspective needs of consumers in energies and protection of the surrounding environment;

the power generation companies - participants of the wholesale market of electrical energy of Ukraine who own or use the generating capacities, make and sell electrical energy;

electroinstallation - complex of the interconnected equipments and constructions intended for production or transformation, transfer, distribution or consumption of electrical energy;

power suppliers are the participants of the wholesale market of electrical energy of Ukraine buying electrical energy in this market with sales objective to her consumers;

the high-level power network - the power network intended for transfer of electrical energy from the producer to Items of connection of local (local) networks or for the purpose of its export;

power suppliers are participants of the wholesale market of electrical energy of Ukraine who buy electrical energy in this market for the purpose of its sale and/or delivery to consumers or for the purpose of its export and/or import;

the regulating document - regulations, rules, instructions and standards accepted and registered according to the procedure, established by the legislation, concerning ensuring proper technical condition of the electrical, thermal, heatusing units and networks;

network (electric or thermal) - set of power and pipeline plants for transfer and distribution of electrical energy, hot water and vapor;

interstate power network - the power network intended for transfer of electrical energy between the states;

local (local) power network - the attached power network intended for distribution of electrical energy from the high-level network and/or power plant to the consumer;

the normative and technical document - regulations, rules, instructions and standards accepted and registered according to the procedure, established by the legislation, on ensuring proper technical condition of the electrical, thermal, heatusing units and networks;

power generation facility - power plant (except nuclear part of nuclear power plant), the electric substation, power network connected to the integrated power system of Ukraine and also the boiler room connected to the high-level thermal network, the high-level thermal network;

the wholesale market of electrical energy of Ukraine - the market created by business entities for purchase and sale of electrical energy based on the agreement;

transfer of electrical energy - transportation of electrical energy by the high-level and interstate power networks based on the agreement;

delivery of electrical energy - the economic activity connected with provision of electrical energy to the consumer by means of technical means of transfer and distribution of electrical energy based on the agreement;

energy consumers - the business entities and physical persons using energy for own needs based on the agreement on its sale and purchase;

subjects of power industry - the business entities irrespective of their departmental accessory and patterns of ownership which are engaged in production, transfer, distribution, delivery of electrical energy and heat energy in case of centralized heat supply and also business entity which exercises centralized dispatching (operational and technology) control;

subjects of power industry - the business entities irrespective of their departmental accessory and patterns of ownership which are engaged in production, transfer, electric power supply and heat energy in case of centralized heat supply;

participants of the wholesale market of electrical energy of Ukraine - the business entities selling and buying electrical energy in the wholesale market of electrical energy of Ukraine based on the agreement;

centralized dispatching (operational and technology) management - operational management by the integrated power system of Ukraine for providing reliable and uninterrupted, with observance of requirements of energy security, electric power supply to consumers;

limiting indicators are the power plants determined in conditions and rules of implementation of economic activity on production of electrical energy the size of installed capacity or amount of annual leave it electrical energy in the integrated power system of Ukraine over which sale of electrical energy shall be performed in the wholesale market;

emergency situation in the state is situation in case of which the fuel reserve on power generation facilities below the established standard rates works well together or the water-supply in water storage basins below the established ecological requirements works well together;

current accounts with the special mode of use of the wholesale market of electrical energy (further - current accounts with the special mode of use) - accounts of the business entities performing electric power supply in the fixed territory and the wholesale supply of electrical energy opened in authorized bank and intended only for accumulating of the means received for electrical energy from consumers and settlings with participants of the wholesale market of electrical energy;

algorithm of the wholesale market of electrical energy - the procedure for distribution by authorized bank of funds from current accounts with the special mode of use without payment orders established by the National commission, performing state regulation in the field of power;

the wholesale supply of electrical energy - purchase of electrical energy, forming of its wholesale price and sale of electrical energy at wholesale price to power suppliers;

authorized bank - the bank institution determined by the Cabinet of Ministers of Ukraine together with the National Bank of Ukraine servicing current accounts with the special mode of use of participants of the wholesale market of electrical energy;

the prohibited zone of hydroelectrotechnical constructions - the parcel of land which adjoins to the main barrier from the inside of the territory of hydroelectrotechnical construction, equipped with technical means and designated by prevention signs, and also the site of the water water area of the upper and lower byef at distance of 500 meters from dam of hydroelectric power station designated by signs which warn about prohibition of access to its territory of strangers, courts and floating objects;

the controlled area of hydroelectrotechnical constructions the territory of concrete and land dams of the hydroelectrotechnical constructions and parcels of land located between water storage basins and drainage channels designated by prevention signs;

especially important power generation facilities - objects which provide steady functioning of the integrated power system of Ukraine destruction or damage of which will lead to violation of electric utility service of business entities and the populations, to the possible human victims and considerable loss of property;

ecological armor of electric utility service of the consumer - the minimum level of consumption of electrical energy by the consumer (except residential customers) providing premises for the prevention of emergence of emergency situations of technogenic and natural nature;

"green" rate - the specific tariff on which the electrical energy made on power generation facilities, including on the queues of construction of power plants put into operation (start-up complexes) is bought, from alternative energy sources (except domain and coke gases, and with hydraulic power use - made only by micro, mini-and small hydroelectric power stations);

microhydroelectric power station - the power plant making electrical energy due to use of hydraulic power which installed capacity does not exceed 200 KW;

the minihydroelectric power station - the power plant making electrical energy due to use of hydraulic power which installed capacity constitutes more than 200 KW, but does not exceed 1 MW;

the small hydroelectric power station - the power plant making electrical energy due to use of hydraulic power which installed capacity constitutes more than 1 MW, but does not exceed 10 MW;

wind electroinstallation - the electrical unit which transforms kinetic energy of wind to electrical energy;

wind power station - the group of wind electrical units or separate wind electroinstallation, equipment and constructions located in one territory which are functionally connected among themselves and constitute the single complex intended for power generation by transformation of kinetic energy of wind to electrical energy;

queue of construction of power plant - the group of electrical units or separate installation, equipment and constructions located in one territory which are functionally connected among themselves and constitute the single complex intended for power generation which according to the project documentation on construction is certain part of power generation facility. The queue of construction of power plant can consist of start-up complexes;

guarantee of origin of electrical energy - the document issued by the subject authorized by the Cabinet of Ministers of Ukraine on request of the electric power producer who confirms that part or certain quantity of electrical energy is made from alternative energy sources (except domain and coke gases, and with hydraulic power use - only micro, mini-and small hydroelectric power stations);

emergency situation in the integrated power system of Ukraine - situation in case of which there is threat of violation of operating mode of the integrated power system of Ukraine or its separate parts, in particular, as a result of deficit of electrical energy and/or capacity of decrease in frequency is lower than maximum permissible borders, violation of the mode of admissible overflows and overload of network elements, undervoltage in control points of power supply system to emergency level;

auxiliary measures for ensuring permanent functioning of the integrated power system of Ukraine - complex of works on control of technical condition and the organization of operation of the energy equipment, on development and deployment of antiemergency measures, on development of regulating documents, scientific research and design decisions;

operational safety of functioning of the integrated power system of Ukraine - capability of the integrated power system of Ukraine to provide its reliable functioning with normative indicators of service quality on distribution and delivery of electrical energy in usual conditions and in the conditions of emergency situations;

the electrotransfer organization - subject of managing which performs activities for transfer or distribution of electrical energy according to the license;

the place of accession (accession point) of electroinstallation - the existing or designed border of balance sheet accessory of electroinstallations of the consumer or customer;

the place of ensuring (providing point) the capacity (recommended for accession) - the place (point) in the existing power networks of the electrotransfer organization from which the electrotransfer organization provides development of power networks for the purpose of accession of electroinstallation of the customer of the corresponding capacity or accession of the generating capacities;

electroinstallation accession (further - accession) - provision of service by the electrotransfer organization to the customer on creation of technical capability for transfer (acceptance) to the place of accession of electroinstallation of the customer of the corresponding capacity to power networks of the electrotransfer organization (including new built) electrical energy of necessary amount with observance of indicators of its quality and reliability;

development of power networks - new construction, reconstruction or technical retrofitting of power generation facilities;

standard accession - electroinstallation accession (except the electroinstallations intended for production of electrical energy) the customer to the operating networks of the electrotransfer organization on the distance which is not exceeding 300 meters in a straight line from the place of ensuring capacity to the place of accession which is differentiated on capacity degrees: the first degree - to 16 kW inclusive; the second degree - from 16 kW to 50 kW inclusive; the third degree - from 50 kW to 160 kW inclusive;

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