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LAW OF THE REPUBLIC OF ARMENIA

of January 17, 2004 No. ZR-18

About regulating authority of public services

(as amended on 07-02-2020)

Accepted by National Assembly of the Republic of Armenia on December 25, 2003

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law establishes procedure for creation and activities of regulating authority of public services.

Article 2. Regulated sphere of public services

In sense of this Law the regulated sphere of public services (further - the sphere of public services) includes:

a) the field of power including systems of power industry, heat supply, gas supply;

b) water sphere;

c) field of telecommunication (electronic communication);

d) sphere of mail service;

e) the sphere of rail transport – regarding methodology of calculation of payment for use of infrastructure, implementation of calculation of payment for use and payment for use;

e) the sphere of carrying out obligatory technical inspection of vehicles – only regarding rates.

Article 3. Legislation on regulation of the sphere of public services

1. The relations arising and the sphere of public services, are regulated by this Law, the Water code of the Republic of Armenia, the laws of the Republic of Armenia "About power", "About electronic communication", "About mail service" (further - the industry laws), other laws.

2. If international treaties establish other regulations, than those which are provided by this Law then are applied regulations of international treaties.

Chapter 2. Regulation in the sphere of public services

Article 4. Regulation

Regulation in the sphere of public services is part of state policy which purpose are providing with regulating authority by means of implementation it of the rights established by the laws and obligations of balance of interests of persons performing regulated activities in the consumer sphere and the sphere of public services (further - regulated persons), creation of identical conditions of activities for regulated persons, assistance to forming and development of the competitive markets and stimulation of rational use of resources.

Article 5. Basic principles of regulation

1. The basic principles of regulation are:

a) autonomous implementation of regulation by state body within the competences established by the law;

b) collective nature and independence of decision making of regulating authority;

c) ensuring transparency of regulation for the public;

d) exception of discrimination against consumers or any regulating person;

e) equilibration of consumer interests and the regulating persons by means of forming of necessary economical and legal prerequisites for guaranteeing rendering high-quality services to consumers and establishment of reasonable rates for services, with simultaneous providing for investors of opportunities of receipt of the reasonable profit proportional to risks;

e) restriction of framework of regulation parallel to development of the competitive markets, and also implementation of regulation in case of the non-competitive markets in the sphere of public services;

g) reducing obstacles for access to the markets in the sphere of public services and ensuring compliance with rules of availability of the services rendered by regulated persons (the goods sold by them);

h) address regulation;

i) compliance of the rates established by the Commission, to service quality of the rendered services (the sold goods).

Chapter 3. Regulating authority

Article 6. Regulating authority

1. Regulation in the sphere of public services is performed by the commission regulating public services of the Republic of Armenia (further - the Commission).

2. The commission is autonomous body.

3. The commission has seal, stamp, the form and other means of identification. On seal of the Commission the coat of arms of the Republic of Armenia and the word "The Commission Regulating Public Services of the Republic of Armenia" are represented. The location of the Commission is the city of Yerevan.

4. The commission within the powers can acquire and perform the property and personal non-property rights on behalf of the Republic of Armenia, perform duties, appear in court as the claimant or the defendant, and also according to the purposes of the activities and value of the fixed property to own, use and dispose of this property.

Article 7. Procedure for forming of the Commission and requirement to members

1. The commission consists of five members: chairman and four members of the commission. Positions of members of the commission are autonomous positions.

2. The chairman and other members of the commission according to the procedure, established by the Constitutional law of the Republic of Armenia "About Regulations of National assembly", are appointed by National assembly for a period of five years, except for appointments of members of the first structure of the Commission, and also the cases provided by parts 6 and 7 of this Article. One person cannot more than two be appointed time in a row the commission chairman or the member of the commission to all term of office.

2.1. The Government of the Republic of Armenia has rights to propose the candidate for vacant position of the commission chairman. The right to promotion of candidates for vacant positions of other members of the commission have, in the following procedure, the Government of the Republic of Armenia, ruling fraction of National assembly and oppositional fraction of National assembly.

2.2. For vacant post of the chairman or member of the commission the candidate is proposed after informing according to the procedure, established by part 4 of article 7.2 of this Law, about the termination of powers of the chairman or member of the commission, the termination of powers of the chairman or member of the commission, and also rejection by National assembly of the decision on appointment of the chairman or the member of the commission in a month. If for the vacant post of the member of the commission allocated for the Government the Republic of Armenia or ruling fraction of National assembly, the candidate is not proposed at the scheduled time, then the same body proposes the candidate for the same position in a month. If for the vacant post allocated for oppositional fraction of National assembly the candidate is not proposed at the scheduled time, then the ruling fraction of National assembly proposes the candidate for this position in a month.

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