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LAW OF THE AZERBAIJAN REPUBLIC

of October 24, 2023 No. 1006-VIQ

About power

This Law according to Item 11 parts one of article 94 of the Constitution of the Azerbaijan Republic establishes the general legal, economic and managerial basis of activities in the field of power, and also mechanisms of ensuring energy security, forming of healthy competitive environment, support of sustainable economic development, providing consumers with reliable, high-quality, available and safe energy.

Chapter 1. Basic provisions

Article 1. Basic concepts

1.1. The basic concepts used in this Law designate the following:

1.1.1. power - the sphere of economy including investigation, development, production, conversion, production, storage, purchase and sale, import, export, transportation (transfer), distribution and energy use;

1.1.2. activities in the field of power - types of activity, the stipulated in Article 5 these Laws and performed according to this Law;

1.1.3. power object - set of the equipment, the devices and the structures relating to them used for production, conversion, transportation (transfer), distribution and storage of energy;

1.1.4. the subject of power - the legal entity or physical person performing one or several types of activity in the field of power;

1.1.5. energy network - set of the equipment, the devices and the structures relating to them intended for transportation (transfer) and distribution of energy;

1.1.6. energy (energy resources) - all types of power products, including fuel types, energy, electrical, heat energy and other forms of energy;

1.1.7. energy balance - the system of accounting ratios on different types of energy approved by the body (structure) determined by relevant organ of the executive authority for the purpose of ensuring energy security, demand forecasting and the offer of energy and accomplishment of its indicators;

1.1.8. the energy consumer (consumer) - the physical person or legal entity buying energy for the needs;

1.1.9. not residential customer - other energy consumer, except for consumers, the stipulated in Article 1.1.10 presents of the Law;

1.1.10. the residential customer - the physical person using electrical or heat energy, and also natural gas for domestic needs in apartment houses and apartments, including premises of housing stock of special function, the stipulated in Article 91 Housing code of the Azerbaijan Republic and also in gardens, garages and other similar constructions;

1.1.11. the independent consumer - the consumer whose annual consumption of electrical energy is in limits and above the limit set by the body (structure) determined by relevant organ of the executive authority;

1.1.12. the dependent consumer - the consumer whose annual electric power consumption is below limit, the stipulated in Article 1.1.11 presents of the Law;

1.1.13. the authorized supplier - the legal entity performing supply with the electric power of dependent consumers, and also independent consumers in the cases established by the Law of the Azerbaijan Republic "About power industry".

1.2. Other concepts used in this Law express the values provided by regulatory legal acts of the Azerbaijan Republic.

Article 2. The legislation of the Azerbaijan Republic in the field of power

2.1. The legislation of the Azerbaijan Republic in the field of power consists of the Constitution of the Azerbaijan Republic, international treaties which participant is the Azerbaijan Republic, this Law, the laws of the Azerbaijan Republic "About power industry", "About gas supply", "About use of renewable energy resources in production of electricity", "About effective use of energy resources and energy efficiency" and other regulatory legal acts governing the relations in this sphere.

2.2. The relations in the energy sector in the Alyatsky free economic zone are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Article 3. Circle of application of the Law

3.1. This Law extends to subjects of power, state bodies (structures) and the regulator, and also to energy consumers.

3.2. This Law extends to the agreements on the equity Section of production approved by the separate laws of the Azerbaijan Republic, both the agreement on oil transportation and gas on export pipelines and also to the relations under other agreements signed within these agreements and approved by the laws of the Azerbaijan Republic only in the cases provided by these agreements and which are not contradicting these agreements.

3.3. This Law does not extend to energy transportation by road, railway, air and water transport, and also for import, export, production, storage and conversion of nuclear materials.

Chapter 2. Activities bases in the field of power

Article 4. Activities of subjects of power

4.1. Types of activity in the field of power are performed based on permissions in the cases provided by the Law of the Azerbaijan Republic "About licenses and permissions". The procedure for issue and cancellation of permissions, term of permissions are determined by this Law, the Law of the Azerbaijan Republic "About licenses and permissions" and the laws regulating different sectors of the sphere of power.

4.2. Investigation, development, production of hydrocarbonic resources, oil transportation and gas on export pipelines, delivery of electrodistribution network, gas distribution network and gas storages in management, and also in other cases established by the laws regulating different sectors of the sphere of power, activities in the field of power is performed based on the agreement signed between the subject of power who got permission to the specified activities and the body (structure) determined by relevant organ of the executive authority.

Article 5. Types of activity in the field of power

5.1. In the field of power the following types of activity are performed:

5.1.1. investigation of energy resources;

5.1.2. development and production of energy resources;

5.1.3. conversion of energy resources;

5.1.4. energy production;

5.1.5. energy storage;

5.1.6. transportation (transfer) of energy;

5.1.7. energy distribution;

5.1.8. import and export of energy;

5.1.9. wholesale and (or) retail sale of energy;

5.1.10. organization of functioning of the natural gas markets and electric power.

Chapter 3. State policy and the state control in the field of power

Article 6. The basic principles of state policy in the field of power

6.1. The basic principles of state policy in the field of power are:

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