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LAW OF THE REPUBLIC OF UZBEKISTAN

of August 7, 2024 No. ZRU-939

About power industry

Accepted by Legislative house on July 9, 2024

Approved by the Senate on July 10, 2024

Chapter 1. General provisions

Article 1. Purpose and scope of this Law

The purpose of this Law is regulation of the relations in the field of power industry.

This Law does not extend on:

the power plants making electrical energy capacity less than 5 MW spending the made electrical energy for own needs without connection to single electric utility system;

the relations connected with use of the equipment for the storage of electrical energy operated in case of storage of electrical energy by the consumer for own needs.

Article 2. Legislation on power industry

The legislation on power industry consists of this Law and other acts of the legislation.

If the international treaty of the Republic of Uzbekistan establishes other rules, than those which are stipulated by the legislation the Republic of Uzbekistan about power industry then are applied rules of the international treaty.

Article 3. Basic concepts

In this Law the following basic concepts are applied:

emergency operation - condition in case of which technology parameters of work of power generation facilities can lead to violation of reliable functioning of single electric utility system;

the participant of the market - the physical person or legal entity having the right to be engaged in sale and (or) purchase of electrical energy, and also the operator of the corresponding system;

the authorized consumer - the consumer having the right to choose or replace the supplier of electrical energy;

social services - the services rendered by the companies of power industry in common social and economic interests;

producer - the legal entity or physical person performing activities for production of electrical energy;

the large consumer - the consumer having the right to buy electrical energy from producers in the wholesale market of electrical energy or from one and more suppliers in the retail market of electrical energy;

the central purchaser - the legal entity having the right on a centralized basis to sell and buy electrical energy;

balancing - process of maintenance in single electric utility system of balance between the demand and supply on electrical energy taking into account all factors, and regulations of tension and frequency in real time;

the appointed supplier - the company which is engaged in the guaranteed delivery (sale) of electrical energy to the consumers who do not have possibility of the choice of the supplier or according to the address of the authorized consumer;

system of distribution - set of objects of low-voltage electric grid economy from system of transfer or producers to point of connection of final consumers;

the supplier - the company delivering (sale) of electrical energy to consumers;

the operator of the corresponding system - the relevant operator of networks of transfer, distribution and the closed distribution to which the user is connected;

supervisory control - ensuring steady work by operational management by single electric utility system in real time and management of operating mode in parallel with electric utility systems of other states;

the system operator - the legal entity exercising supervisory control taking into account the factors influencing the demand and supply on electrical energy;

system services - the services provided by the system operator for ensuring steady work of single electric utility system;

the trader - the legal entity or physical person which is engaged in sale of electrical energy, except for operators of systems of transfer and distribution;

system of transfer - set of objects of electric grid economy of high-voltage power network of 35 kV and above to which producers, large consumers and systems of distribution are connected, and also connected with electric utility systems of other states;

the operator of system of transfer - the legal entity having power to perform activities for operation and development of systems of transfer in the Republic of Uzbekistan;

the user - the legal entity or physical person having the right to use single electric utility system;

power plant - set of objects of production of electrical energy;

power networks - set of objects of systems of transfer and distribution of electrical energy, and also rendering the additional services necessary for transfer and distribution of electrical energy;

electric utility service - distribution, delivery and sale of electrical energy to the consumer;

the company of power industry - the legal entity performing activities for production, transfer, storage, distribution, purchase, sale of electrical energy or the organization of the market of electrical energy, and also import and export of electrical energy. At the same time the group of companies of power industry which stocks are owned directly or indirectly by the state is not considered one vertically integrated company of power industry;

power generation facilities - the electrical power infrastructure used in case of production, storage, transfer and distribution of electrical energy;

power industry - the sphere including production, storage, transfer, distribution, delivery, purchase and sale, and also consumption of electrical energy;

electrical energy - the special type of goods which is characterized by simultaneous production (storage) and consumption;

the market of electrical energy - the competitive wholesale and retail market of electrical energy;

the operator of the market of electrical energy - the legal entity responsible for forming of the competitive wholesale market of electrical energy and the organization of sale and (or) purchase of electrical energy on behalf of participants of the market for safe and effective functioning of the competitive wholesale market of electrical energy in the Republic of Uzbekistan;

rules of the market of electrical energy - the precepts of law determined by the Cabinet of Ministers of the Republic of Uzbekistan which shall be observed by participants of the competitive wholesale and retail market of electrical energy, determined in rules of the competitive wholesale and retail market of electrical energy;

storage system of electrical energy - set of the used for storage and subsequent transfer, distribution of electrical energy of rechargeable batteries, mechanical storage systems, pumped storage power plants and other equipment;

the competitive wholesale market of electrical energy - set of the mechanisms regulating sale and (or) purchase of electrical energy on the basis of the competition between the companies of power industry, large consumers and the companies of power industry of other states. At the same time the companies of power industry perform activities in the competitive wholesale market of electrical energy based on the license granted by the energy market Regulator;

rules of the competitive wholesale market of electrical energy - the complex governed, established by the Cabinet of Ministers of the Republic of Uzbekistan for the purpose of ensuring effective activities of the competitive wholesale market of electrical energy;

the competitive retail market of electrical energy - set of mechanisms, processes of trade for sale of electrical energy between two and more suppliers for the purpose of sale of electrical energy to authorized consumers in one or several territories and (or) sales of electrical energy to the consumers who are not representatives, according to the procedure, established by the Cabinet of Ministers of the Republic of Uzbekistan;

rules of the competitive retail market of electrical energy - the complex governed, established by the Cabinet of Ministers of the Republic of Uzbekistan for the purpose of ensuring effective activities of the competitive retail market of electrical energy;

single electric utility system - set of objects of production and storage of electrical energy, systems of transfer and distribution and their supervisory control.

Article 4. The basic principles in the field of power industry

The basic principles in the field of power industry are:

legality;

healthy competition;

equality and accountability;

openness and transparency;

priority of safety of the sphere of power industry.

Chapter 2. State regulation in the field of power industry

Article 5. The main directions of state policy in the field of power industry

The main directions of state policy in the field of power industry are:

sustainable development and increase in efficiency of the sphere of power industry according to measures for decrease in negative impact on the environment and amount of greenhouse gases, to safety;

the safety of deliveries directed to safe and stable work of single electric utility system, requirements satisfaction of consumers as electrical energy;

protection of the right of connection to single electric utility system and uses of it;

providing competitiveness, transparency and inadmissibility of discrimination;

step-by-step exception of subsidizing and cross subsidizing in the field of power industry;

ensuring independence of activities for transfer and distribution of electrical energy from other types of activity in the field of power industry and the related interests;

support of use of energy efficient technologies and installations of renewable energy resources in the field of power industry;

support of exchange of electrical energy with other states for the purpose of effective use of capacity of the networks of electricity transmission connecting their power supply systems;

protection of the rights and legitimate interests of users.

Article 6. The bodies performing state regulation in the field of power industry

State regulation in the field of power industry is performed:

Cabinet of Ministers of the Republic of Uzbekistan;

Department of Energy of the Republic of Uzbekistan;

Agency on development and regulation of energy market of the Republic of Uzbekistan;

Inspectorate for control of use of electrical energy, oil products and gas;

executive bodies on places.

Article 7. Powers of the Cabinet of Ministers of the Republic of Uzbekistan in the field of power industry

Cabinet of Ministers of the Republic of Uzbekistan:

provides realization of single state policy in the field of power industry;

provides development and program implementation of development in the field of power industry;

determines the basic principles and the priority directions of economic reforms in the field of power industry;

approves balance of production and consumption of electrical energy;

coordinates international cooperation in the field of power industry;

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