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LAW OF THE AZERBAIJAN REPUBLIC

of April 3, 1998 No. 459-IG

About power industry

(as amended on 30-05-2023)

Chapter I. General provisions

Article 1. Basic concepts

In this Law the basic concepts in the following values are used:

power industry - the industry of economy which is engaged in development, storage, transfer, distribution and sale of electrical and heat energy;

the company of power supply - the legal entity guaranteeing supply of the population and other consumers with energy on the basis of special permission;

electric utility system - consolidation of power plants, substations, the power lines connected among themselves by single engineering procedure of development, storage, transfer and distribution of electrical and heat energy, and their organizations (systems) of management;

electrical units - the equipment and constructions relating to it which are required for development, storage, transfer and distribution of electrical energy;

district thermal installations - technical equipment and constructions relating to it which are required for production, transfer and distribution of hot water, vapor and other heat carriers within certain territory;

power generation facilities - the power plants, substations, power lines used in production process, storages, transfers and electricity distributions, buildings or the constructions necessary for centralized and local dispatching servicing;

accession point - the place of physical accession of power generation facilities and construction to power network providing transfer and distribution of electrical energy;

service fee on accession - the payment determined by body (organization) determined corresponding executive body for project, installation and construction works and physical accession to the existing 0,4 network of kV for the construction objects provided by part four of article 8-1 of this Law (taking into account the made costs for the used materials) and for physical accession to power network after accomplishment by the customer project and installation and construction works according to specifications for the construction objects provided by part five of article 8-1 of this Law;

the Treaty of Accession - the agreement containing conditions of accession of construction objects to power network and determined by procedure for accession of construction objects to power network or receipts of additional energy (capacity);

the network of transfer - set of the electroinstallations intended for transfer of electrical energy including transformer substations of system value of 110 kV and is higher also than power line;

the network of power supply (distribution network) - set of the electroinstallations intended for distribution of electrical energy including transformer substations of 110 kV and is lower also the power lines which are not entering into network of transfer;

power network - set of the electric devices intended for transfer and distribution of electrical energy;

the state electrical power company - the networks of transfer, means of their dispatching management managed from the single center and subordinated to it (who are its part) the electric power producers;

the distributor of electrical energy - the legal entity performing distribution of electrical energy with being in its property or use of distribution network;

accession of construction objects to power networks (technology accession) - rendering services in preparation of the project of power supply and to accomplishment of installation and construction works, physical accession of construction objects to power networks and creation of the act of accession according to the agreement of accession signed before establishment of the relations of purchase and sale of the electric power and these specifications;

the act of accession - the document confirming physical p accession of construction object to power network;

physical accession - accession of the power line drawn for food of electroinstallations of the customer to the point of accession specified by the company providing specification;

the project of power supply - the project documentation on laying of power lines from construction object to point of accession to power networks and (or) acquisition of additional capacity;

the existing 0,4 network of kV - power network, in which there is transformer 0,, the kV established at distance (radius) no more than 400 meters in a straight line from the area is the construction object (will be located).

Article 2. Scope and purpose of the Law

This Law determines the legal basis of development, transfer, distribution, purchase and sale and consumption of electrical and heat energy.

Basic purpose of this Law - to provide and reach energy efficiency rational use of energy resources and social and economic feasibility of development of energy, showing care of the environment, and its deliveries to energy market taking into account consumer interests.

Article 3. Subjects of supply with electrical and heat energy

Subjects of supply with electrical and heat energy are:

state electrical power company;

companies of power supply;

independent producers of energy - the legal entities having complete economic and organizational independence and not subordinate (which is not entering into structure) the state electrical power company;

energy consumers.

The state electrical power company includes the managed from the single center of transfer networks of electricity transmissions, dispatching and managing means subordinated to it (which are its part) the producers of energy. The company on the basis of agreements buys energy from producers and transfers it by means of the networks, conducts transactions on energy exchange with foreign countries.

The company of power supply as the legal entity, buys on the basis of agreements electrical and heat energy from the state electrical power company and producers and sells it to consumers with approval of the corresponding technical and economic conditions. The procedure for accession of construction objects to power network or receipts of additional energy (capacity) is determined by body (organization) determined by relevant organ of the executive authority. Connection of the consumer of heat energy to network of power supply or issue of specifications for receipt of additional energy (capacity) by it is regulated by the rules of use of heat energy specified in the first part of article 11 of this Law.

The independent power producers belonging to the state, different industries of economy and the private organizations supply consumers with electrical and heat energy on the power networks, and also by means of the state electrical power company and (or) the companies of power supply according to the legislation of the Azerbaijan Republic export excessive part of the energy made by them.

The companies of power supply and independent producers of energy can have any pattern of ownership.

Article 4. Management and the state control in the field of electrical and heat energy

Relevant organs of the executive authority bear responsibility for:

issue of special permission to development, transfer, distribution and sale of electrical and heat energy;

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