LAW OF THE REPUBLIC OF ARMENIA

of March 21, 2001 No. ZR-148

About power

Accepted by National Assembly of the Republic of Armenia on March 7, 2001

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law governs the relations of state bodies of the Republic of Armenia, persons performing according to this Law activities in the field of power and consumers of electrical, heat energy, natural gas.

Article 2. Law purpose

The purpose of this Law is determination of the principles of state policy of the Republic of Armenia in the field of power and mechanisms of their realization.

Article 3. Sphere of power industry of the Republic of Armenia

1. The sphere of power industry of the Republic of Armenia (further - the sphere of power) is set of the business entities (irrespective of pattern of ownership) involved for rendering public services in activities for production of electrical and heat energy (including their combined development), transfer (transportation), distribution and delivery of electrical, heat energy and natural gas, rendering services of the operator of systems in the field of power industry and natural gas, the operator of the electrical power market, wholesale trade by electrical energy (capacity), to import and export of electrical energy and the natural gas, property necessary for implementation of these activities, and structures on rendering services on energy market.

2. Components of the sphere of power are:

a) system of power industry;

b) systems of heat supply;

c) gas supply system.

Article 4. Basic concepts

The basic concepts used in sense of this Law are:

1) safety areas - the territories adjacent to objects of the sphere of power (to structures, installations, lines, communication, transfers (transportation) and distribution) provided for the purpose of ensuring normal functioning of objects, safety of life of the operating personnel and citizens, mutual safety in the relation with other objects;

2) distribution network - the single system of lines, substations, gas control nodes and other equipment on distribution of electrical or heat energy or natural gas managed or operated by person having the license respectively for distribution of electrical or heat energy or natural gas by means of which electrical or heat energy or natural gas is distributed to consumers;

3) confidential information - information on financial position and trade secrets of licensed person or other data which publication can do harm to licensed person, and also the information about consumers which is available for licensed person;

4) the subconsumer - the consumer whose power supply is performed from system of consumption of other consumer and who has the contract of delivery of electrical, heat energy or natural gas signed with the supplier in accordance with the established procedure;

5) the electrical power market - system of relations of the participants of the electrical power market involved in the purchase and sale, transfer, distribution and (or) delivery of electrical energy (capacity) organized according to this Law and rules of the market which consists of the wholesale and retail markets;

6) participants of the electrical power market - the persons who are participating in the wholesale or retail market according to this Law and rules of the market, having the license for production, delivery, wholesale trade, transfer, distribution of electrical energy (capacity), the operator of system of power industry and the operator of the electrical power market and also consumers (including skilled consumers);

7) guarantee of purchase of the electric power - the right to obligatory purchase of electrical energy (capacity) made by person having the license for production of electrical energy (capacity) in terms and in the amounts established by this Law, and also transactions of public-private partnership which is protected by this Law, rules of the market and agreements. In sense of this determination, the quantity which was actually made and brought by person having the license and also who it was ready to make and bring is considered quantity of electrical energy (capacity) made by person having the license, but could not as a result of scheduling of the operator of electric utility system or unavailability of its acceptance in networks of transfers or distribution network, and these cases as exception, are not established by rules of the market;

8) electrical supply - delivery of electrical energy (capacity) to consumers on the regulated conditions provided by this Law;

9) the guaranteed electrical supply - the guaranteed delivery of electrical energy (capacity) to consumers on regulated conditions and on the rates provided by this Law;

10) the market of direct agreements of the electric power - the sector of the wholesale electrical power market on which trade in electrical energy is performed based on the direct purchase and sale agreements of electrical energy signed between participants of the market;

11) electricity market "in day ahead" - the sector of the wholesale electrical power market on which trade in electrical energy is performed a day before day of the actual delivery of electrical energy;

12) the balancing electricity market - the sector of the wholesale electrical power market on which trade in the balancing electric power is performed;

13) the autonomous power producer - the consumer making electrical energy for own requirements using renewable energy resources who concluded with person having the license for the guaranteed delivery, the agreement on mutually currents and is not person having the license for production in this autonomous installation of power production. In sense of this Item, own requirement consumption of electrical energy by the autonomous producer, and in case of autonomous group - all participants of group, irrespective of the purposes of its use is considered (household, production, etc.);

13. 1) autonomous group - group of the autonomous power producer or the autonomous power producer (autonomous producers) and the consumer (consumers);

14) the license - the official document provided by the decision of the Commission, certifying the right of person to implementation of activities or rendering the services in the field of power provided by this Law, and in the cases provided by this Law and the license - also the obligation;

15) licensed person - the physical person or legal entity which obtained the license according to this Law;

16) the vulnerable consumer - the inhabitant subscriber who received the status of the vulnerable consumer according to the procedure, established by the Government of the Republic of Armenia, taking into account its social neediness or availability of the special status;

17) scheduling - set of opportunities of production of electrical energy, import, export and transit of electrical energy and natural gas, and also the process and actions necessary for declaring and planning of anticipated expenses of consumption and for technology management of power system for the purpose of satisfaction of demand for electrical energy and natural gas in full in real time which will provide delivery of electrical energy and natural gas of the established quality with observance of indicators of reliability and safety;

18) network of transfer (transportation) - single system of lines (substations, gas control nodes and other equipment) transfers (transportation) of electrical, heat energy and natural gas through which electrical, heat energy or natural gas are transmitted (are transported) in distribution network, to the consumer, is exported imported) and transferred by transit to the third country;

19) system services - the services acquired at the prices regulated by rules of the market for reliable and safe work of electric utility system;

20) the balancing electric power – difference of direct agreements of the electrical energy and quantities of the electrical energy sold and purchased in the markets "in day ahead" in real time, from quantities of the electrical energy which is actually delivered and received (including imported and exported or reflected by transit) for the same settlement period which is determined according to the procedure, established by rules of the market;

20. 1) service in balancing – the service rendered according to the procedure, established by rules of the market, for the purpose of production of the balancing electrical energy;

21) Commission - Commission on regulation of public services of the Republic of Armenia;

22) rules of delivery and use - the regulating documents approved by the Commission which establish rules and delivery conditions of heat energy or natural gas by suppliers of the consumer and their use by consumers;

23) connection - connection of the new or reconstructed system of consumption or the station to network of transfer (transportation) or distribution network according to the regulatory legal acts in the field of power approved by the Government of the Republic of Armenia or the rules of connection established by the Commission;

23. 1) micropower producer - the legal entity or physical person making electrical energy at the station installed capacity to 150 kW;

24) rules of the market - the commercial and network rules of the electrical power market approved by the Commission, regulating commercial relations of participants of the wholesale and retail electrical power markets, and also the relations connected with development planning, management, scheduling of network of transfer and distribution network and ensuring access to these networks;

25) the skilled consumer - the consumer (subconsumer) with features, statutory rules of the market recognized by the operator of the electrical power market to the criteria qualified based on compliance established by rules of the market, approved by the Commission based on own statement;

26) rate - the highest price or payment established according to this Law the Sales commission of unit of electrical energy (capacity), heat energy, natural gas the services rendered by means of licensed activities in the field of power;

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