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LAW OF THE REPUBLIC OF MOLDOVA

of June 26, 2025 No. 164

About the electric power

The parliament adopts this organic law.

This law partially shifts:

- The directive of the European parliament and Council (EU) 2019/944 of June 5, 2019 about general rules of the domestic market of the electric power and about modification of the Directive (EU) 2012/27, published in the Official magazine of the European Union by L 158 of June 14, 2019 (CELEX: 02019L0944), in the option adapted and approved by decisions of Ministerial council of Energy community No. 2021/13/MC-EnC and No. 2022/03/MC-EnC with the last changes made by the Directive (EU) 2024/1711;

- Regulations of the European parliament and Council (EU) 2019/943 of June 5, 2019 about the domestic market of the electric power, published in the Official magazine of the European Union by L 158 of June 14, 2019 (CELEX: 02019R0943), in the option adapted and approved by the Decision of Ministerial council of Energy community No. 2022/03/MC-EnC with the last changes made by Regulations (EU) 2024/1747;

- Regulations of the European parliament and Council (EU) 1227/2011 of October 25, 2011 about integrity and transparency of the wholesale market of energy, published in the Official magazine of the European Union by L 326 of December 8, 2011 (CELEX: 02011R1227), in the option adapted and approved by the Decision of Ministerial council of Energy community No. 2018/10/MC-EnC.

- Regulations of the Commission (EU) 2015/1222 of July 24, 2015, establishing managements on allocation of handling capacity and management of overloads (Item 23 of Article 2, Articles 4, 5, 6 both 9, and also Article 32 and 33), published in the Official magazine of the European Union by L 197 of July 25, 2015 (CELEX: 02015R1222), in the option adapted and approved by the Decision of Ministerial council of Energy community No. 2022/03/MC-EnC with the last changes made by Executive regulations (EU) 2021/280.

Chapter I. General provisions

Article 1. Purpose of the law and scope

(1) the Purpose of this law is creation of the general regulatory base concerning the organization, regulation, ensuring effective functioning and monitoring of the electric utility sector intended for supply of consumers with the electric power on the terms of availability, availability, reliability, uninterruptedness, quality and transparency, provision of adequate investment incentives of production of electricity and development of power supply networks, in particular encouragement of long-term investments in dekarbonizirovanny and steady electric utility system and also assistance to accomplishment of other tasks of state policy in the field of power.

(2) This law is aimed at creation of the integrated electricity market, competitive, concentrated on the consumer, flexible, fair and transparent. The law establishes the fundamental principles of effective functioning of the integrated electricity market which provides non-discriminatory access to the market of all suppliers of resources and consumers, raises possibilities of consumers, provides competitiveness and the dispatched consumption, storage of energy and energy efficiency, facilitates aggregation of the demand and supply on the electric power and allows to perform sectoral and integration into electricity market, made from renewable sources, and also its remuneration on the basis of market mechanisms.

(3) the Law is aimed at providing the prices and cost of electricity, available and transparent for consumers, high degree of safety of supply with the electric power and smooth transition to steady power system with low emissions of carbon dioxide. The law establishes the main regulations concerning: protection and increases in opportunities of consumers, new forms of participation of consumers, including through the dispatched consumption, open access to the integrated electricity market, access for the third parties to networks of transfer and electricity distribution, requirements for department, maximization and effective use of cross-border handling capacity, effective balancing, tools of long-term covering of the risks based on market mechanisms, tasks and obligations of system operators, operators of electricity market, the delegated operators and other participants of the market, safety of supply with the electric power, competence and field of activity of the National agency on regulation in power (further - the Agency), and also concerning regional and Pan-European cooperation of the relevant parties.

(4) fall Under operation of this law:

a) production of electricity;

b) transmission of electricity, including cross-border flows of the electric power;

c) electricity distribution;

d) trade in the electric power;

e) electrical supply;

f) energy storage;

g) aggregation;

h) determination and price fixation on the electric power, and also determination and establishment of regulated rates according to this law;

i) licensing of types of activity in electric utility sector;

j) the institutional development necessary for normal functioning of electric utility sector and the integrated electricity market;

k) regulated access for the third parties to power supply networks;

l) organization, functioning and market monitoring of the electric power, access to electricity markets, obligations of members of electricity markets, and also ensuring transparency and integrity of electricity markets;

m) protection and increase in opportunities of consumers;

n) safety, in particular safety of supply with the electric power;

o) access to public or private property for the purpose of construction, operation, maintenance, recovery or upgrade, including technology retrofitting of power supply networks;

p) cooperative principles and interactions between industry body of the central public management in the field of power, the body given authority on regulation and monitoring of activities in electric utility sector, other key subjects of electric utility sector and competent authorities of contracting parties of Energy community and member states of the European Union, and also cooperative principles and interactions with the Secretariat of Energy community, the Regulating committee of Energy community, and also with the Agency of the European Union on cooperation of regulating authorities in the field of power (further - ACER) and with the European network of operators of systems of transmission of electricity (further - ENTSO-E).

Article 2. Basic concepts

In value of this law the following basic concepts mean:

1) access to the power supply network - the right of the user of system, including the final consumer, to be connected to the power supply network and to receive and/or deliver the electric power in amounts and during the period specified in the service provision agreement on transmission of electricity and/or in the service provision agreement on electricity distribution according to the conditions established in this law;

2) the agreement on connection on flexible conditions - set of agreed terms for connection to the power supply network of power plants, installations of storage and/or installations of consumption which include conditions of restriction and control of entrance of the electric power to network of electricity transmission or the distribution power supply network or exit from it;

3) the act of compliance - the document issued by body of the state energy supervision according to this law owing to check of the new or existing electroinstallation, electric part of power plant or the reserve source of the electric power belonging to educational educational institutions, including preschool educational institutions, medical institutions, retirement homes or houses of orphans, or owing to check of network of public lighting, confirming their compliance of the project documentation, and also to the regulations, normative and technical documents relating to processes of arrangement and operation of installations and power plants including electric safety. The act of compliance is issued also in the cases provided by part (4) Article 69 and part (5) Article 73;

4) adequacy - capability of sources of the electric power of certain zone to cover electric power consumption in that zone;

5) aggregation - the activities performed by physical person or legal entity, combining electric loads of several consumers or the electric power developed by several power plants for the purpose of sale, purchase or exposure to auction on any electricity market;

6) the independent aggregator - the participant of the market who is the owner of the license for aggregation, performing activities for aggregation according to this law and is not affiliated to the supplier of the consumer;

7) capacity allocation - interzonal distribution of capacity;

8) accident - violation of functioning of installations or the equipment of the power supply network or power plant which led to dangerous variation of parameters of the mode of functioning of the corresponding power supply network or power plant from the parameters provided by industry normative and technical documents;

9) capacity of consumption - electric power consumption by the final consumer in case of complete use of production capacity of the corresponding final consumer which includes cumulative electric power consumption of the corresponding final consumer as single business entity if such consumption happens on electricity markets to interdependent wholesale prices. In case of application of this concept electric power consumption in the certain places of consumption which are belonging to the same final consumer and having capacity of consumption less than 600 GW of h/year is not considered if these places of consumption do not exert cumulative impact on the prices in the wholesale markets of the electric power owing to the geographical arrangement on different relevant electricity markets;

10) balancing capacity - capacity amount which the service provider on balancing agreed to store and which the service provider on balancing agreed to provide to the operator of the transferring system on effective period of the agreement signed with it, offers on the corresponding amount of balancing energy;

11) the approved net handling capacity - method of calculation of capacity on the basis of valuation principle and determination of ex ante of the maximum exchange of the electric power between the next zones of submission of offers;

12) stand-by capacity - quantity of reserves for ensuring stability of frequency, reserves for recovery of frequency or replacement reserves which shall be at the disposal of the operator of the transferring system;

13) interzonal capacity - capability of the electric utility system which is in intersystem connection to perform transmission of energy between zones of submission of offers;

14) the best available methods - in the context of protection and data security in the conditions of smart accounting - the most effective, advanced and adequate methods from the practical point of view providing, in principle, basis for respect for applicable rules on protection and data security;

15) power plant - the complex of the installations transforming primary energy to the electric power, consisting of one or several generating modules of the electric power connected to the power supply network;

16) city thermal power plant - thermal power plant or power plant of highly effective cogeneration which makes electrical and heat energy and delivers heat energy in centralized system of heat supply;

17) the competent power plant using renewable energy resources - the power plant using renewable energy resources which owner uses the scheme of the support provided by the Law on promotion of energy use from renewable sources No. 10/2016;

18) certification - the procedure during which observance by the operator of the transferring system of requirements for its department and independence, and also other relevant demands made to the operator of the transferring system by this law and which is the precedent condition for appointment of the operator of the transferring system by licensing is considered;

19) counter sale - the interzonal exchange of the electric power initiated by operators of the transferring systems for settlement of cases of physical overwork between two zones of submission of offers;

20) completely integrated network components - the network components which are completely integrated into networks of electricity transmission or distribution power supply networks including the installations for energy storage and used only for ensuring safe and reliable functioning of networks of electricity transmission or distribution power supply networks, but not for balancing or management of overloads;

21) energy community of citizens - the legal entity answering in total to the following conditions:

a) is based on voluntary and open participation and it is actually controlled by members or participants - physical persons, bodies of local public authority of the first level, small or small commercial societies;

b) its main objective is provision of ecological, economic or social benefits for the members or participants, or local zones in which it performs the activities, than receipt of financial profit;

c) can be engaged in productive activity, including from renewable sources, in distribution, delivery, consumption, aggregation, energy storage, to provide services in energy efficiency or services in electricity sale to owners/owners of electric vehicles on reloading Items, or to provide other energy services to the members or participants;

22) centralized management of electric utility system - planning and single operational and technology management of electric utility system for ensuring its balancing and safety of functioning, ensuring stability of tension and uninterruptedness of supply with the electric power, for regulation of flows of the electric power in networks of electricity transmission and coordination of cross-border exchanges of the electric power;

23) overload - impossibility of satisfaction of all requests of members of electricity market for sale between zones of network because of potential deterioration in physical flows on network elements who cannot cope with the corresponding flows;

24) structural overload - the overload in network of electricity transmission which can be unambiguously determined, predictable, geographically steady throughout time and often arises in usual conditions of functioning of electric utility system again;

25) the dispatched consumption - change of electric loading by final consumers in comparison with regular or intra daily configurations of electric power consumption, in response to market signals, including in response to the electricity prices changing depending on hour of consumption or in response to financial incentives, or on adoption of the offer of the final consumer concerning sale of service in decrease or increase in demand at determined price in the organized market, individual method or way of aggregation;

26) the consumer - the wholesale and final consumer of the electric power;

27) the active consumer - the final consumer or group of the final consumers acting jointly who consume or store the electric power in the places belonging to them located in limited zones either consume or store the self-produced electric power or divided with other places, either sell the self-produced electric power or participate in programs of flexibility or energy efficiency provided that these types of activity are not its main business or professional activity;

28) the wholesale consumer - physical person - the individual entrepreneur or the legal entity buying the electric power for its resale in or out of electric utility system in which this person acts;

29) the residential customer - the consumer buying the electric power for own household consumption, except for the consumption connected with business or professional activity;

30) the final consumer - the consumer buying the electric power for own consumption;

31) not residential customer - the physical person or legal entity buying the electric power for other purposes than for own household consumption, including producers, industrial consumers, small, small and medium commercial societies and wholesale consumers;

32) the delivery agreement of the electric power - the agreement based on which the electric power, but which does not turn on derivative tools of the electric power is delivered;

33) the delivery agreement of the electric power at the dynamic prices - the delivery agreement of the electric power signed between the supplier and the final consumer, reflecting price fluctuations in short-term electricity markets including the markets for the days ahead and the intra daily markets, bucketed, at least equal to settlement intervals in the market;

34) the delivery agreement of the electric power for certain term and on fixed price - the delivery agreement of the electric power signed between the supplier and the final consumer who guarantees that terms and conditions of the agreement including the price, remain invariable during the term of the agreement, but which in case of fixed price can include flexibility element, for example, of price fluctuation in peak periods and the offpeak periods and in connection with which the single changes in the invoice can arise owing to elements which are not determined by suppliers, such as taxes and fees;

35) control over the company - the rights, agreements or other means which taking into account the corresponding legal or actual circumstances give opportunity to render separately or in combination decisive influence on the company, in particular, by means of:

a) property rights or rights of complete or partial use of assets of the company;

b) the rights or agreements giving opportunity of the solving influence on structure of the company, vote or decisions of its governing bodies;

36) electrical power crisis - the current or inevitable situation in case of which major deficit of the electric power as it is established in the action plan in emergency situations in the electric utility sector approved by the Government or in case of which electrical supply to final consumers is impossible is noted;

37) imbalance - the amount of energy calculated for the party, responsible for balancing, and representing difference between the quantity which is marked out to the relevant party responsible for balancing and final line item of the relevant party responsible for balancing including any review of imbalance applied to this party, responsible for balancing, in certain interval of settlement of imbalances;

38) development of the distribution power supply network - increase in capacity of the existing distribution power supply network or construction of new networks or sites of distribution power supply networks;

39) development of network of electricity transmission - increase in capacity of the existing network of electricity transmission or construction of new networks of electricity transmission or sites of networks of electricity transmission;

40) scheduling - the technical activities characteristic of electric utility system performed by specialized divisions of the operator of the transferring system on self-scheduling model for the purpose of the approved operation of the installations and the equipment constituting electric utility system which requires single management;

41) priority scheduling - scheduling of power plants on the basis of the criteria other than economic procedure for submission of offers, with provision of benefit of scheduling of certain production technologies;

42) electricity distribution - transmission of electricity by distribution power supply networks for the purpose of its delivery to consumers, not including delivery;

43) balancing - set of actions and processes on all time frames by means of which the operator of the transferring system provides in the continuous mode maintenance of frequency of electric utility system in previously determined stability limits, and also maintenance of compliance to the size of the reserves of capacity necessary in connection with required quality;

44) the measuring equipment - the device or system intended for measurement of quantity of the delivered electric power and in need of electric power for the purpose of invoicing;

45) the regular measuring equipment - the analog or electronic measuring equipment not capable to transfer and obtain data;

46) the authorized electrician - the physical person given body of the state energy supervision by the right to construction of electroinstallations, power plants, installations for storage of energy and respectively the right to creation of documentation on the performed works;

47) critical network element - element of the power supply network or within zone of submission of offers, or between zones of submission of offers, considered in capacity settlement process, limiting quantity of the electric power which can be exchanged;

48) balancing energy - the energy used by the operator of the transferring system for balancing and delivered by one or several service providers on balancing;

49) outsourcing of service or work - transfer of system by the operator to the third party of service or work which it shall carry out according to this law and with license conditions, not assuming license concession to the third party;

50) flexibility - capability of electric utility system to adapt to fluctuations of production and electric power consumption and to availability of the power supply network, in relevant time frames of electricity market;

51) cross-border flow - the physical flow of the electric power in networks of electricity transmission of the Republic of Moldova resulting from impact of activities of producers and/or consumers because of limits of the Republic of Moldova on its network of electricity transmission;

52) electrical supply - sale, including resale of the electric power to consumers;

53) the supplier - the electrical power company - the owner of the license for electrical supply, delivering the electric power according to this law;

54) the supplier of universal service - the supplier who in the context of the obligation on public service shall provide with universal service of residential customers and small and small commercial societies;

55) the central electric power supplier - the subject appointed by the Government for purchase of the electric power from the producers developing the electric power at the competent power plants using renewable energy resources, and purchases during the certain period of time of the electric power made by city combined heat and power plants and also its deliveries to electricity market according to this law at the regulated prices approved by the Agency;

56) the service provider on balancing - the participant of the market delivering to the operator of the transferring system either balancing energy, or balancing capacity, or both balancing energy and balancing capacity;

57) the supplier as a last resort - the supplier appointed to provide electrical supply to final consumers of the supplier who stopped the activities;

58) exact information - information which reflects set of circumstances which came or concerning which there are reasonable grounds to believe that they will come, or event which took place or concerning which there are reasonable grounds to believe that it will take place and which is rather true to draw conclusion on possible influence of all circumstances or the corresponding event on the price of energy products of the wholesale market;

59) information on invoicing - information provided in the invoice of the final consumer, except for requirements about payment;

60) exclusive information - not promulgated exact information which directly or indirectly concerns one or several energy products of the wholesale market and which in case of its promulgation is capable to influence the prices of these energy products of the wholesale market significantly. In value of this determination as information it is understood:

a) information which is subject to promulgation according to this law, codes of power supply networks, managements, Rules of electricity market, and also according to other regulating regulations approved by the Agency;

b) information on capacity and use of power plants, installations for storage of energy, networks of electricity transmission, including data on their planned or unplanned unavailability;

c) information which is subject to disclosure according to this law and the regulating regulations approved by the Agency or in accordance with the terms of agreements of the wholesale market of the electric power if such data can have significant effect on the price of energy products of the wholesale market; and

d) other information which the participant of the market can reasonably use for reasons for the decision to conclude the bargain concerning energy product of the wholesale market, or to issue concerning it the trade order;

61) sensitive information on protection of critical infrastructure - information on critical infrastructure in the value determined by the Law on the prevention and fight against terrorism No. 120/2017, which in case of disclosure can be used for the purpose of planning and implementation of actions for violation or destruction of objects of critical infrastructure;

62) electroinstallation - installation for connection and consumption installation;

63) installation for connection - installation by means of which power plant, installation for storage of energy or installation of consumption is connected to network of electricity transmission, to the distribution power supply network, including the closed distributive system or system of direct current of high voltage (HVDC system);

64) installation for energy storage - in electric utility system - installation in which energy is kept;

65) consumption installation - complex of installations and the equipment of the final consumer, held for use the electric power;

66) the derivative tool of the electric power - the financial instrument determined according to the Law on the capital market No. 171/2012, the size of which is based on indicator or group of indicators of electricity markets, provided for provision to participants of the market of sales opportunity of new line items or coverings of the risks provided that the tool is connected with electric utility sector;

67) intersystem connection - the power line which is crossing or passing through border between the Republic of Moldova and contracting parties of Energy community and/or border between the Republic of Moldova and member states of the European Union and connecting electric utility systems of the Republic of Moldova and contracting parties and/or the Republic of Moldova and member states of the European Union;

68) new intersystem connection - intersystem connection which was not complete by July 1, 2007;

69) interoperability - in the context of smart accounting capability of two or more networks, systems, devices, appendices or energy or communication components jointly to work, change or use information for the purpose of accomplishment of the established functions;

70) interval of settlement of imbalances - period of time for which the imbalance of the parties responsible for balancing is calculated;

71) the electrical power company - the physical person or legal entity registered in accordance with the established procedure in the Republic of Moldova as the company, performing at least one of types of activity on production, transfer, electricity distribution, aggregation, the dispatched consumption, storage of the electric power, trade in the electric power, delivery or purchase of the electric power and performing the commercial, technical functions and/or service functions connected with the specified types of activity, not including final consumers;

72) the integrated electrical power company - horizontally or vertically integrated electrical power company;

73) horizontally integrated electrical power company - the electrical power company performing at least one of types of activity on production of electricity with sales objective, transfers, to distribution or electrical supply, and also performing other activities which are not connected with electric utility sector;

74) vertically integrated electrical power company - the electrical power company or group of the electrical power companies in which the same person or the same persons has the right to exercise, directly or indirectly, control according to the definition given by this law and which perform at least one of types of activity on transfer or electricity distribution and at least one of types of activity on production or electrical supply;

75) the related company - the affiliated company which has the majority of voting powers at other company and/or the right to appoint or recall most of members of governing bodies of other company and which at the same time is shareholder, the founder of the relevant company and/or which based on the agreement signed with other shareholders, founders of this company controls voting powers at the relevant company; and/or dependent enterprise in relation to the dominating company; and/or the associate having significant effect on financial and managerial policy of other company; and/or the company which is under the influence of other company; and/or the companies belonging to the same shareholders, founders; and/or the companies which, without being dependent from each other, are joint under single management or are controlled by the bodies consisting in the majority the of one and those persons; and/or other types of the affiliated companies;

76) head enterprise - the company which controls one or several controlled entities;

77) electricity transmission straight line - the power line connecting the power plant isolated from electric utility system with electroinstallations of the isolated consumer or the power line connecting power plant with the supplier for the purpose of delivery of the electric power directly to own rooms, departments and to own consumers;

78) the place of consumption - location of electroinstallations of the final consumer where by means of one installation of consumption the electric power delivered by means of one or several installations for connection is spent;

79) the mechanism of ensuring capacity - measure by means of which achievement of necessary level of adequacy of resources by remuneration of resources for their availability, except the measures connected with system services and management of overloads is provided;

80) self-scheduling model - model of programming and scheduling by means of which the program of production and the program of consumption, and also scheduling of power plants and places of consumption are determined by agents on programming of the corresponding installations;

81) the obligation on public service - the obligation assigned to the electrical power company in general economic interests for limited period of time which can concern safety, in particular safety of supply with the electric power, uninterruptedness, quality and the prices of deliveries, and also environmental protection and which shall not be discrimination and shall not distort the competition more than it is strictly necessary for implementation of the obligation on this public service;

82) the operator of electricity market - the company - the owner of the license for the implementation of transactions on electricity market providing service in case of which offers on electricity sale correspond to offers on purchase of the electric power in the organized markets of the electric power;

83) the appointed operator of electricity market (NOREE) - the operator of electricity market appointed by the Agency according to this law to carry out the tasks connected with single interface of the markets for the days ahead and/or the intra daily markets;

84) the operator of distributive system - the electrical power company which performs activities for electricity distribution and bears responsibility for operation, maintenance, upgrade, including technology retrofitting, and if necessary for development of distribution power supply networks in certain zone and on circumstances of their intersystem connections with other systems, and also for providing capability of distribution power supply networks dolgosrochno to satisfy reasonable level of demand on provision of service in electricity distribution;

85) the operator of the transferring system - the electrical power company which performs activities for transmission of electricity and operational technology to management of electric utility system and which bears responsibility for operation, maintenance, upgrade, including technology retrofitting, and if necessary for development of networks of electricity transmission in certain zone and on circumstances of their intersystem connections with other systems, and also for providing capability of networks of electricity transmission dolgosrochno to satisfy reasonable level of demand on provision of service in transmission of electricity;

86) the delegated operator - the subject to whom the specific obligations or powers entrusted the appointed operator of the transferring system or the operator of electricity market, the relevant appointed operator of the transferring system or the operator of electricity market or to whom conferred to obligation or powers were assigned by the Agency were delegated;

87) the system operator - the operator of the transferring system and/or the operator of distributive system;

88) quality parameters - set of the characteristics of the electric power established in the quality standards approved by national authority on standardization and specified as obligatory in Regulations on electrical supply, Regulations on service quality on transfer and electricity distribution and Rules of electricity market;

89) joint energy consumption (division) - self-consumption by active consumers of electricity from renewable sources:

a) which is developed or stored outside the location or between the locations installation which they own, transfer to concession or lease, fully or partially; or

b) concerning which the appropriate right is transferred by it other active consumer on paid or free basis;

90) the contracting party of Energy community - the country which signed the Agreement on Energy community;

91) the party responsible for balancing, - the participant of the market or its appointed representative responsible for its imbalances on electricity market;

92) the participant of the market - the physical person or legal entity selling or buying the electric power, participating in aggregation or being the operator of the dispatched consumption or services in energy storage including by placement of trade orders on one or several electricity markets, including the balancing markets;

93) the market of bilateral agreements (curb market) - the market in which sale and purchase of the electric power happen out of the organized market, directly between members of electricity market, based on bilateral agreements of purchase and electricity sale;

94) the wholesale market of the electric power - any market of the Republic of Moldova in which transactions with energy products of the wholesale market are made;

95) the retail market of the electric power - the organized place where the electric power is bought by final consumers from suppliers for the purpose of satisfaction of own consumption of the electric power;

96) electricity market - electricity markets, including the markets of bilateral agreements (curb markets), and the organized markets of the electric power (the exchanges of the electric power, trading floors managed by the operator of electricity market), the markets of trade in the electric power, capacities, services in balancing and system services in all intervals of time, including the forward markets, the markets for the days ahead and the intra daily markets;

97) the balancing market - set of the institutional, commercial and operational provisions determining management of balancing on the basis of market mechanisms;

98) the intra daily market - the wholesale market of the electric power organized by the operator of electricity markets who provides to participants of the market opportunity to cover the actual schedule of loading for one day of delivery via trade mechanisms according to which sale and purchase of the electric power is performed on the basis of the transactions made on the date of delivery after closing of the market for the days ahead and in a definite time prior to deliveries;

99) the organized market - the energy exchange, trading floors of the electric power managed by the operator of electricity market, the energy broker, the platform for trade in capacities or any other system or the mechanism in which set interested in purchase or sale of energy products of the wholesale market of the third parties interact by method which can lead to transaction;

100) the market for the days ahead - the wholesale market of the electric power organized by the operator of electricity market which makes available to participants of the market trade mechanisms of sale and purchase of the electric power on each interval of scheduling of day of physical electrical supply which follows at once behind day of transaction;

101) long-term planning - long-term planning of necessary investments into production capacities, networks of electricity transmission and distribution power supply networks for the purpose of satisfaction of electric power demand in system, diversification of sources and guaranteeing uninterrupted supply of the electric power to consumers;

102) payment for agreement cancelation by retroactive effect - the payment or penalty fee for termination by retroactive effect of the delivery agreement of the electric power or the agreement on aggregation imposed on consumers by suppliers or aggregators;

103) payment for change of supplier or the aggregator - payment or penalty fee for change of supplier or the aggregator, including the payment for agreement cancelation by retroactive effect directly or indirectly assigned to consumers by suppliers, aggregators or system operators;

104) the price for imbalance - the price which can be positive, zero or negative, in each interval of settlement of imbalances for imbalance in any direction;

105) process of preliminary qualification - verification process of observance by the supplier of balancing capacity of the requirements established by the operator of the transferring system;

106) producer - physical person or legal entity which makes the electric power;

107) production of electricity - activities for production of electricity;

108) the distributed production - production of electricity at the power plants connected to distribution power supply networks;

109) energy products of the wholesale market - the following agreements and derivative tools of the electric power provided further, irrespective of the place or method of the conclusion of the transaction:

a) delivery agreements of the electric power in case of implementation of delivery in the Republic of Moldova or in other contracting party of Energy community;

b) service provision agreements on transmission of electricity in case of implementation of delivery to the Republic of Moldova or in other contracting party of Energy community;

c) delivery agreements and electricity distribution to final consumers with capacity of consumption more than 600 GW of h/year, in case of implementation of delivery to the Republic of Moldova or other contracting party of Energy community;

110) specific balancing product - the balancing product other than standard balancing product;

111) standard balancing product - the harmonized balancing product determined by all operators of the transferring systems for exchange of services in balancing;

112) the indicative project - the project showing that the technology such is for the first time used in Energy community and represents the essential innovation much advancing the current stage of technologies;

113) differentiation point - the place in which electroinstallations of the final consumer or the electric power producer or the operator of installation of storage are differentiated based on the property right from electroinstallations of the electrical power company, or the place in which electroinstallations of the electrical power companies are differentiated on the basis of the property right;

114) connection point - physical point through which power plant, installation for energy storage, consumption installation, distribution power supply networks or the HVDC system are connected to network of electricity transmission or the distribution power supply network, including to the closed distributive system or to the HVDC system;

Reloading Item - the interface capable to load serially on one electric vehicle or serially to change 115) on one battery of the electric vehicle;

116) power of the power plant - the total size of rated active power of generators of the electric power of power plant;

117) connection - accomplishment of installation by the system operator for connection and/or giving of tension on consumption installation, power plant or installation for energy storage;

118) rescheduling - measure, including restrictive, applied by one or several operators of the transferring or distributive system by change of development, the consumed electric loading or that and another, for change of physical flows in electric utility system and settlement of physical overwork or for safety of electric utility system;

119) the settlement region of capacities - geographical zone in which coordinate calculation of capacities is applied;

120) the power supply network - network of electricity transmission and the distribution power supply network;

121) the distribution power supply network - the system serving for electricity distribution, consisting of electric lines of high, average and low voltage with the transformer and switching equipment, and also auxiliary installations;

122) network of electricity transmission - the system serving for transmission of electricity, consisting of electric lines of high voltage with the transformer and switching equipment, and also the auxiliary installations which are in management of the operator of the transferring system;

123) safety - safety of supply with the electric power, and also technical safety;

124) safety of supply with the electric power - capability of electric utility system to guarantee electrical supply to consumers at accurately established efficiency level;

125) technical safety - uninterrupted operation of networks of electricity transmission and on circumstances of the distribution power supply network in predictable conditions;

126) additional services - the services accompanying service in transmission of electricity or service in electricity distribution, provided to users of system and the third parties by the operator of the transferring system or the operator of distributive system according to this law and Regulations on connection to power supply networks and provision of services on the transfer and electricity distribution approved by the Agency (further - Regulations on connection) on the basis of the regulated rates approved by the Agency according to the methodology of calculation, approval and application of regulated rates for additional services approved by the Agency (further - methodology of rates for additional services);

127) services in balancing - the balancing electric power or balancing capacity, or both services;

128) system services - the services necessary for operation of networks of electricity transmission or distribution power supply networks, including services in balancing and system services which purpose is not stability of frequency, behind inclusion of management of overloads;

129) system service which purpose is not stability of frequency, - the service used by the operator of the transferring system or the operator of distributive system for adjustment of tension in the stationary mode, bystry entrances of reactive current, inertia for the purpose of stability of local network, current of short circuit for capability to start by own sources and work capabilities in the island mode;

130) universal service - the service provided for providing the right of residential customers, small and small commercial societies on the guaranteed delivery of the electric power by it on the regulated conditions established in this law with observance of previously set quality parameters at competitive, reasonable, transparent, non-discriminatory and easily comparable prices;

131) the closed distributive system - the system authorized in accordance with the terms of this law by means of which the electric power in geographically limited zone - industrial is distributed, commercial or general servicing;

132) smart system of accounting - the electronic system capable to record amount of electric power, delivered in the power supply network, or electric power consumption in the power supply network, and providing bigger amount of information, than the regular measuring equipment, and also capable to transfer and obtain data for the purpose of informing, monitoring and control using form of electronic communications;

133) electric utility system - the generating units and the equipment necessary for operational and technology management of the power supply network, installation for storage of energy, the power supply network, and also electrical units of final consumers working in total in single system;

134) the joint system - set of networks of electricity transmission and the distribution power supply networks connected among themselves by means of one or several intersystem connections;

135) lump-sum system - calculation method of determination of quantity of the consumed electric power, proceeding from capacity of electroreceivers and number of hours of their use on types of electroreceivers, or from contractual capacity and number of hours of use of this capacity; the method is applied in terms and on the conditions provided by the law;

136) small commercial society - the company numbering workers up to 50 people and the annual turnover or the year balance which is not exceeding in leevy equivalent of 10 million euros. This determination is used only for the purpose of ensuring implementation of the mechanisms established by this law;

137) small commercial society - the company numbering workers up to 10 people and the annual turnover or the overall year balance which is not exceeding 2 million euros in leevy equivalent. This determination is used only for the purpose of ensuring implementation of the mechanisms established by this law;

138) average commercial society - the company numbering workers up to 250 people and the annual turnover which is not exceeding in leevy equivalent of 50 million euros or the year balance which is not exceeding 43 million euros in leevy equivalent. This determination is used only for the purpose of ensuring implementation of the mechanisms established by this law;

139) energy storage - the engineering procedure in electric utility system consisting in transfer of end use of the electric power for later time from the moment of production or in transformation of the electric power to form of energy which can be stored, in storage of the corresponding energy and further transformation of this energy to the electric power or its use in other energy carrier;

140) cross subsidies - the direction of income gained during implementation of one type of activity or in connection with certain category of consumers on covering of the expenses or losses suffered by the same electrical power company when implementing other type of activity or in connection with other categories of consumers;

141) reserve source of the electric power - electric power source which is part of installation of consumption of the final consumer and is established only for the purpose of increase in degree of reliability of supply with the electric power of the corresponding final consumer;

142) binomny rate - the electricity tariff consisting of two components: one - on the consumed electric power and another - on the electric power;

143) rate for giving of tension - the regulated rate paid by the applicant to the operator of the transferring system or the operator of distributive system on covering of costs for connection to the power supply network and giving of tension on installation of consumption or power plant, established according to methodology of rates for additional services;

144) rate for connection - the regulated rate paid by the applicant to the operator of the transferring system or the operator of distributive system on covering of the costs connected with accomplishment of installations for connection of the applicant, the potential final consumer, the potential producer or the potential operator of installation for energy storage, and for giving of tension on consumption installation, power plant or installation for energy storage, established according to methodology of rates for additional services;

145) the attempt of market manipulation - consists in one of the following actions:

1) making of any transaction or issue of any trade order or making of any action concerning energy product of the wholesale market with intention:

a) transfers of false signals or false representation concerning demand, the offer or the price of energy products of the wholesale market;

b) establishments in the artificial way of the price of one or several energy products of the wholesale market if only the person who made the transaction or published the trade order does not prove that the reasons which induced it to arrive thus are legal and that the corresponding transaction or the given trade assignment correspond to market practice, admissible in the corresponding wholesale market of the electric power; or

c) uses of the dummy tool or any other form of deception or confidence abuse which transfer or are capable to transfer the untrue or misleading signals concerning the offer, demand or the price of energy products of the wholesale market;

2) distribution of information with use of mass media, including on the Internet, or any other means with intention to transfer the untrue or misleading signals concerning the offer, demand or the price of energy products of the wholesale market;

146) terms, conditions and/or methodologies (TUM) - set of the rules, procedures and/or methods developed on the basis of codes of power supply networks and managements, regulating work of the interconnected electric utility systems and cross-border aspects of electric utility sector applied at the Pan-European, regional or national level to regulation applied or developed by the operator of the transferring system delegated by the operator and/or NOREE and approved according to the principles established in Article 39;

147) time which is brought closer to real - in the context of smart accounting, the short period of time estimated usually seconds or to interval of settlement of imbalance in the national market;

148) the trader - physical person or legal entity which buys and sells the electric power in the wholesale markets of the electric power only for resale;

149) transmission of electricity - transportation of the electric power on networks of electricity transmission for the purpose of its delivery to final consumers or operators of distributive systems, not including delivery;

150) the generating unit - one generator of the electric power belonging to one production unit;

151) the user of system - physical person or legal entity which delivers the electric power in power networks or to which the electric power from power networks is delivered;

152) the cost of losses because of break in electrical supply - the maximum price of the electric power estimated in lei of MDL/MW by the h which final consumers are ready to pay in order to avoid break in electrical supply;

153) price zone for imbalance - geographical zone in which the price for imbalance is calculated;

154) the controlled area - the connected part of the interconnected electric utility system operated by one system operator and including the connected physical activities and/or the generating units in case of their availability;

155) zone of submission of offers - the largest geographical zone in which members of electricity market can perform exchange of the electric power without allocation of capacities;

156) the conservation zone of power supply networks - the zone, adjacent to power supply networks, with special conditions of use established along the route of power supply networks and around other objects of the power supply network within which according to Regulations on conservation zones of power supply networks ban on access for people, on carrying out certain works and the mode of building for the purpose of providing normal service conditions and exception of possibility of damage of power supply networks, and also creation of threat for people, property and the environment are imposed.

Article 3. Regulating tasks

(1) According to this law the electric power is made, transferred, distributed, is stored, delivered and consumed in the most effective way.

(2) Regulating tasks of this law is the following:

a) creation of necessary premises for effective implementation of the purposes of the Republic of Moldova, Energy community and, in particular the framework climatic and energy the politician for 2030, allowing the market to give signals to increase in efficiency, increase in share of renewable energy resources, safety of supply with the electric power, flexibility, stability, decarbonization and innovations;

b) ensuring the safe, reliable and effective functioning of electric utility system designed to guarantee uninterrupted supply of the electric power and requirements satisfaction in the electric power of final consumers with observance of parameters of quality and the established quality indicators, and also provision of system and additional services;

c) creation of necessary conditions for implementation of adequate investments into electric utility system for ensuring sufficient potential of production of electricity, sufficient capacities of networks of electricity transmission and distribution power supply networks, intersystem connections taking into account tasks of intersystem connection of the electric utility systems planned within Energy community and also for implementation of investments into the changing and flexible production of the electric power, in storage of energy or implementation of electromobility, necessary for steady and reliable functioning of electric utility system, and also for safety of supply with the electric power;

d) carrying out the adequate tariff policy based, in particular, on efficiency and incentives, providing effective functioning and financial viability of the regulated electrical power companies and all electric utility sector, and also the tariff policy directed to increase in energy efficiency during cycle of production, transfer, distribution and electricity use;

e) creation of the necessary legal basis for regulation and monitoring of the actual department of the operator of the transferring system and operators of distributive systems, and also ensuring their independence of the electrical power companies performing activities for production of electricity, trade in the electric power or electrical supply;

f) providing to all physical persons and legal entities of regulated and non-discriminatory access to networks of electricity transmission and distribution power supply networks, and also to system services;

g) ensuring open and non-discriminatory entry to electricity market and fair conditions of the competition in which to the electrical power companies transparent, pro rata and non-discriminatory approaches, rules and rates, in particular, are applied to responsibility for balancing, access to the wholesale market of the electric power, access to data, processes of replacement and the modes of invoicing, and also on circumstances of licensing;

h) assistance to creation of the functional and transparent wholesale markets of the electric power promoting the high level of safety of supply with the electric power and also introduction of mechanisms of harmonization of rules for cross-border exchanges of the electric power;

i) ensuring integrity and transparency of the wholesale markets of the electric power, including by introduction of obligations of participants of the market on registration and publication of exclusive information in terms and on the conditions provided by this law, way of introduction of rules, prohibiting the illegal practice which is negatively affecting the wholesale markets of the electric power, connected with the market manipulation and transactions based on exclusive information and also by determination of specific powers of the Agency on investigation of potential abuses in the market and the possible transactions based on exclusive information;

j) ensuring cooperation of the Agency with other regulating authorities of contracting parties of Energy community, and also with the Regulating committee of Energy community in connection with investigation of potential abuses in the wholesale markets of the electric power of the Republic of Moldova and possible transactions based on exclusive information, having the potential of cross-border impact;

k) providing that electricity prices reflected the valid demand and supply;

l) encouragement of use of modern, smart and eco-friendly technologies, production of electricity from renewable energy resources and production of electrical and heat energy in the mode of highly effective cogeneration;

m) determination of fair rules for cross-border exchanges of the electric power, for improvement of the competition on electricity markets taking into account specific characteristics of the national and regional markets, including introduction of the mechanism of compensation for cross-border flows of the electric power, introduction of the harmonized principles concerning rates for cross-border transfer and allocation of available capacities of intersystem connections between the national transferring systems;

n) determination of conditions for accomplishment of obligations on public service in electric utility sector and ensuring protection of legitimate rights of final consumers;

o) establishment of the main legal base for the prevention of electrical power crises and management of them, including for acceptance necessary for this purpose died;

p) increase in efficiency and reducing negative influence of activities in electric utility sector on the environment, and also assistance to development of electric utility sector according to economic, ecological and social policies of the state;

q) ensuring regional and international cooperation of the operator of the transferring system, the Agencies and the Governments for the purpose of creation of completely integrated electricity market increasing integration of the electric power from renewable sources, free competition and safety of supply with the electric power;

r) increase in safety of supply with the electric power and providing security measures for the purpose of the prevention and fight against acts of terrorism and acts of sabotage concerning infrastructure of national electric utility system.

(3) the Measures taken by bodies of the public power according to this law for providing conditions of the fair competition shall be compatible to the Agreement on Energy community, in particular with provisions of its Article 41, and also with the regulatory base of Energy community. These measures shall be pro rata, non-discriminatory and transparent and be applied after the notification of the Secretariat of Energy community and receipt of the corresponding approval.

(4) Any of provisions of this law cannot be interpreted for the purpose of creation of obstacles for cross-border trade in the electric power, participation of consumers, including by the dispatched consumption, for investments into production of electricity, in particular in the changing and flexible production of the electric power, for storage of energy or implementation of electromobility or for creation of obstacles in development of new intersystem connections between the Republic of Moldova and contracting parties of Energy community or between the Republic of Moldova and member states of the European Union, and also for the purpose of creation of obstacles in order that electricity prices reflected the valid demand and supply.

Chapter II. Administrative and regulating powers

Part 1. Administrative powers

Article 4. Competence of the Government

(1) For ensuring steady functioning and development of electric utility sector the Government:

a) determines state policy and priority spheres in electric utility sector, plans the directions of its development taking into account, in particular, need of decrease in impact of electric utility sector for the environment and for climate changes;

b) provides creation of necessary premises for development and steady functioning of electric utility sector;

c) approves the energy strategy, and also other political documents in electric utility sector;

d) approves energy balance for the medium-term period, for five years, developed by industry body of the central public management in the field of power;

e) assigns to the electrical power companies of the obligation for public service according to this law;

f) creates at the request of the Agency according to part (6) Articles of 21 companies performing activities for transfer, distribution or electrical supply in the context of the obligations on public service concerning provision of universal service, delivery as a last resort or implementation of activities of the central electric power supplier and also in other cases when such intervention is necessary;

g) issues permission according to Article 106 and according to Regulations on construction/reconstruction of power plants, the approved Government; on construction of new power plants or new thermal power plants with installed capacity more than 20 MW, and also on increase in capacity of the existing power plants or the existing thermal power plants if the total installed capacity exceeds 20 MW;

h) establishes the minimum obligatory quantity of fuel reserves necessary for functioning of the city thermal power plants using fossil fuel for previously established period of time;

i) appoints the central electric power supplier;

j) appoints the operator of electricity market;

k) ensures energy security of the state and safety of supply with the electric power within the competence established by this law and the Law on power No. 174/2017. For this purpose approves, in particular, Regulations on emergency situations in electric utility sector, the Action plan in emergency situations in electric utility sector, structure of the Commission on emergency situations of the Republic of Moldova (further - the Commission on emergency situations) and determines its powers in connection with management of electrical power crises, establishes powers of industry body of the central public management in the field of power in connection with the prevention and management of electrical power crises;

l) approves Regulations on conservation zones of power supply networks;

m) accepts the resolution on entering into Parliament of the offer on the announcement of emergency situation according to the Law on the modes of emergency, obsidional and warlike situation No. 212/2004;

n) provides protection of vulnerable consumers by means of social policy, including by payment of compensations within the available financial resources.

(2) the Government appoints the company the operator of electricity market on condition of its compliance to the following criteria:

a) is the legal entity registered in the Republic of Moldova affiliated to the operator of electricity market, appointed by one of contracting parties of Energy community or one of member states of the European Union;

b) has experience of the organization of the market for the days ahead and the intra daily market, the market of bilateral agreements, and also experience of accomplishment of the tasks connected with single interface of the markets;

c) proves capability to provide single interface of the market for the days ahead and/or the intra daily market of the Republic of Moldova with the similar integrated markets at the European level.

(3) the Government ensures energy security of the state and safety of supply with the electric power by approval/adoption of the program documents and regulations specified in Items k) and m) parts (1), and also by accomplishment of other necessary actions provided by this law.

(4) the Government promotes cooperation of public organizations and industry national authorities for the purpose of harmonization of administrative practice in electric utility sector and advances interests of electric utility sector at the international level, and also signs the international agreements, including for the purpose of strengthening and safety of supply with the electric power.

(5) the Government performs also other functions provided by this law and the Law on power No. 174/2017.

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

(1) the Industry body of the central public management in the field of power performs the following powers:

a) develops and advances the energy strategy, and also other program documents in electric utility sector;

b) develops and advances regulations in electric utility sector, including in the context of harmonization of the national legal system with the European Union law;

c) performs monitoring of accomplishment of the energy strategy, other program documents, and also regulations in electric utility sector;

d) manages the property which is in public property of the state, used in the course of implementation of activities for transmission of electricity;

e) advances within the competence regional and international cooperation in electric utility sector.

(2) the Industry body of the central public management cooperates with the Secretariat of Energy community, and also provides it necessary information in the cases provided by this law and the regulatory base of Energy community.

(3) the Industry body of the central public management in the field of power performs also other functions determined by this law, the Law on power No. 174/2017, the regulations on the organization and functioning approved by the Government, and also other regulations in the field.

Article 6. Competence of bodies of local public authority

(1) Organa of local public authority issue at the request of the construction license for objects of electric utility system, including power plants and installations for energy storage, according to the Town-planning and construction code.

(2) In case of issue of town-planning certificates for designing and permissions for construction of residential and non-residential buildings bodies of local public authority shall observe the requirements to conservation zones of the power supply networks and/or power lines belonging to the producers or not residential customers located outside their property, established in Regulations on conservation zones of power supply networks.

(3) Organa of local public authority has no right to issue town-planning certificates for designing and the permission for construction of residential and non-residential buildings in conservation zones of the power supply networks and/or power lines belonging to producers or not residential customers, located outside their property.

(4) If the construction license was issued without provisions of parts (2) and (3) the body of local public authority which issued this permission incurs costs for transfer of the power supply network in which conservation zone the construction was made, or provides demolition of illegal structure.

(5) Organa of local public authority bear responsibility for designing, construction and operation of networks of public lighting, and also for project development of construction of distribution power supply networks of local value on the basis of the conclusions on connection issued by operators of distributive systems and according to town-planning plans and plans of arrangement of the territory, and also represent the corresponding projects to system operators.

Part 2. Regulating powers

Article 7. Regulating authority

(1) the Body given authority on regulation and monitoring of activities in electric utility sector is the regulation Agency in power.

(2) the Agency will be organized, controlled and financed according to provisions of the Law on power No. 174/2017.

(3) In electric utility sector the Agency performs the activities according to this law, the Law on power No. 174/2017 and the Regulations on the organization and functioning of the National agency on regulation in power approved by Parliament.

(The Agency develops 4), represents to Parliament and posts on the official website the activities report for previous year according to the procedure and in the terms established by the Law on power No. 174/2017. The report is transferred for acquaintance to the Secretariat of Energy community and the Regulating committee of Energy community.

Article 8. Main objectives of the Agency

(1) In case of execution of the regulating competences Agency takes all reasonable measures on accomplishment within implementation of the functions and powers provided by this law, the following main objectives:

a) promotion in close cooperation with regulating authorities of other contracting parties of Energy community, the Secretariat of Energy community and the Regulating committee of Energy community of the domestic market of the electric power, competitive, flexible, reliable and steady from the point of view of the environment, within Energy community and the actual openness of the market for all consumers and suppliers of Energy community, and also providing adequate conditions for effective and reliable functioning of power supply networks taking into account long-term goals;

b) development of the competitive and functional cross-border regional markets within Energy community for accomplishment of the purposes specified in Item a);

c) lifting of restrictions in trade in the electric power between contracting parties of Energy community, including development of the corresponding cross-border handling capacity for satisfaction of demand and strengthening of integration of electricity markets that facilitates electric power flows in Energy community;

d) assistance to achievement most in an efficient manner from the point of view of costs to development of the non-discriminatory, safe, reliable and effective electric utility systems oriented to consumers, maintenance of adequacy of electric utility system and according to common goals of energy policy - energy efficiency and integration of both networks of electricity transmission, and distribution power supply networks, production of electricity of the low and big power by power plants using renewable sources and the distributed production, and also simplification of their functioning concerning networks of natural gas or thermal networks;

e) simplification of access to the power supply network for new production capacities and installations for energy storage, in particular elimination of the barriers capable to interfere with access for new participants to the market and access of the electric power from renewable sources;

f) ensuring provision of the corresponding incentives to system operators and users of system both on short-term, and for long-term outlook for efficiency optimization, in particular energy efficiency, concerning effectiveness of electric utility system, and also for assistance of integration of electricity market;

g) providing that consumers had real advantages from effective functioning of electricity markets, promotion of the real competition and ensuring high level of consumer protection in close cooperation with competent authorities on consumer protection;

h) support in achievement of high standards in realization of universal service and other obligations on public service connected with electrical supply, assistance to protection of vulnerable consumers and ensuring compatibility of the processes of data exchange necessary for change of suppliers by consumers.

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