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LAW OF THE AZERBAIJAN REPUBLIC

of November 24, 1998 No. 541-IG

About power

(as amended on 22-10-2019)

Chapter I. General provisions

Article 1. Basic concepts

The concepts used in this Law express the following values:

activities in the field of power - types of activity on investigation, development, production, production, processing, storage, transportation, distribution and use of energy materials and products (energy resources);

investigation in the field of power (or investigation) - the activities performed in the purposes, identical with development, by means of the preposted magnetometric, gravimetric, seismic, geochemical, thermal and radiometric methods and test drilling operations;

development - the activities directed to detection and assessment of deposits or underground storage warehouses of energy materials by means of drilling operations;

energy distribution (or distribution) - procurement of crude oil and oil products, gas, electrical and heat energy and their distribution between consumers;

the energy distributor (or the distributor) - any company performing activities for energy distribution;

the power station - any stationary or portable installation (including and the parcels of land covered by it) used in the types of activity connected with power or for implementation of these types of activity at the required level for storage of required energy materials and products;

the main power transport systems - means of transportation (pipelines, power lines, etc.) or their part performing transportation or transfer of energy materials and products, except for the railroad, automobile and waterways, and also the installations servicing communication signaling;

the agreement or the energy agreement - the written agreement signed between the parties and determining conditions of implementation of types of activity in the field of power;

the reproduced energy sources - the energy sources (the sun, wind, thermal flows of the earth, biomass, the sea, water flows, etc.) which are constantly existing in the environment or continuously created;

recovery work - recovery of the sites used in energy activities for the benefit of the population and their adaptation to the environment.

Article 2. The sphere covered by the Law

1. This Law covers the following spheres:

types of activity in the field of power (on the energy materials and products specified in Appendices 1 and 2);

placement, construction and operation of installations for implementation of the specified types of activity;

measures for protection and rational energy use, and also for prevention or weakening of negative environmental impact of activities in the field of power.

2. This Law concentrates in itself the most general legal basis of state regulation of oil, gas and electrical power industries of power. Special rules can be provided in other laws adopted on separate industries.

Chapter II. State energy policy

Article 3. Purposes of the state energy policy

The purposes of the state energy policy consist in providing and regulation of the following:

1. Ensuring effective production, production, transportation, distribution, storage, use and safety of energy materials and products.

2. Creation of infrastructure, effectively and reliably providing energy of all consumers, and new workplaces taking into account the following:

creation of conditions for the competition and the minimum monopoly on all types of activity in the field of power;

the organization of activities in the field of power on the basis of the different patterns of ownership, long-term contracts and permissions issued according to this Law and the Law of the Azerbaijan Republic "About licenses and permissions";

creating favorable conditions for the local companies making high-quality products;

creating favorable conditions for use of effective and ecologically safe technology.

3. Preservation of energy resources, decrease in level of waste, effective use of energy and use of the reproduced power sources.

4. Reduction of negative environmental impact.

5. Provision of grants to producers and consumers for increase in productivity of power in the conditions of emergence of insufficiency of energy.

6. Creation of favorable legal and economic conditions for investments.

7. Creation of the state energy programs.

Article 4. State energy programs

1. According to the purposes determined by this Law, the relevant organ of the executive authority systematically constitutes long-term state programs on the organization and development of power.

2. Development programs of power are financed by means of the government budget of the Azerbaijan Republic, fund of effective use of energy resources, legal entities and physical persons, including by foreign investments. According to the Law of the Azerbaijan Republic "About environmental impact assessment" strategic ecological assessment of these programs is made.

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