LAW OF THE REPUBLIC OF ARMENIA

of January 17, 2004 No. ZR-18

About regulating authority of public services

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

1. This Law establishes procedure for creation and activities, power, guarantee of independence of regulating authority of public services.

Article 2. Regulated sphere of public services

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

1) the field of power which includes systems of power industry, heat supply, gas supply;

2) water sphere;

3) field of telecommunication (electronic communication);

4) area of mail service as regards rates for provision of universal services of mail service;

5) area of rail transport in calculation and approval of payments for use of infrastructure;

6) the field of carrying out obligatory technical inspection of vehicles - only as regards rates.

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

1. The relations arising in the sphere of public services are regulated by the Constitution, this Law, the Water code of the Republic of Armenia, the laws "About Power", "About Electronic Communication", "About Mail Service" (further - the industry laws), other laws and other legal acts adopted on their basis.

2. If the international treaties ratified by the Republic of Armenia establish other regulations, than are provided by this Law, then regulations of international treaties are applied.

Chapter 2. Regulation in the sphere of public services

Article 4. Regulation in the sphere of public services

1. Regulation in the sphere of public services is part of state policy which purpose - to counterbalance consumer interests or persons performing regulated activities in the sphere of public services (further - regulated persons) in harmony with industry strategic policy, with implementation by regulating authority of the powers established by the laws to create uniform requirements to activities for regulated persons, to promote forming and development of the competitive markets and to stimulate effective use of resources.

Article 5. Basic principles of regulation

1. The basic principles of regulation are:

1) implementation of regulation by autonomous state body within the competences established by the laws;

2) collective nature and independence of adoption of decisions by regulating authority;

3) ensuring transparency of regulation for the public;

4) discrimination exception in relation to consumers or regulated person;

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

6) 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;

7) reducing obstacles for entry into the markets in the sphere of public services and ensuring compliance with rules of availability of the services (the sold goods) rendered by regulated persons;

8) address and proportional regulation;

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

Chapter 3. General rules of activities of regulated body

Article 6. Regulating authority and procedure for its activities

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

2. The commission is autonomous state body which is created according to the procedure, established by this Law, is effective according to the Constitution, this Law and other legal acts and is independent when implementing the competences.

3. Competences of the Commission are established by industry and other laws.

4. 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 "Commission on Regulation of Public Services of the Republic of Armenia" are represented.

5. The location of the Commission is the city of Yerevan.

6. The commission within the competence 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 its activities and value of the property assigned to it to own, use and dispose of this property.

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

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

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