LAW OF THE REPUBLIC OF MOLDOVA

of December 23, 2009 No. 124

About the electric power

The parliament adopts this organic law.

This law creates necessary basis for application of the Directive 2003/54/EC of the European Parliament and Council of June 26, 2003 about general rules of the domestic market of the electric power and cancellation of the Directive 96/92/EC published in the Official magazine of the European Union No. L 176 of July 15, 2003 and also Directives 2005/89/CE of the European Parliament and Council of January 18, 2006 about measures for safety of supply with the electric power and investments into infrastructure published in the Official magazine of the European Union No. L33 of February 4, 2006.

Chapter I. General provisions

Article 1. Law purpose

The purpose of this law is: creation of the legal basis for effective functioning, regulation and step-by-step liberalization of electricity market, implementation of activities in electric utility sector and productions of heat energy by combined heat and power plants in the conditions of availability, availability, reliability, uninterruptedness, competition, transparency, with observance of regulations of quality, safety and consumer protection and the environment; determination of measures for safety of supply with the electric power for ensuring proper functioning of electricity market, adequate level of production capacities, the corresponding balance between the demand and supply, and also appropriate level of capacity of intersystem communication with electric utility systems of neighboring countries for market development of the electric power.

Article 2. Scope of application

This law extends on:

a) production of electricity;

b) production of electrical and heat energy by combined heat and power plants;

c) transmission of electricity and management of electric utility system, including cross-border flows of the electric power;

d) electricity distribution;

e) electrical supply;

f) import and export of the electric power;

g) determination and approval of regulated electricity tariffs and on the provided services;

h) licensing of types of activity on electricity market;

i) electricity market;

j) functioning of electric utility system;

k) safety and reliability of supply with the electric power of final consumers;

l) protection of the rights of final consumers;

m) regulated access for the third parties to power supply networks.

Article 3. Basic principles of regulation

(1) For the purpose of ensuring energy security, environmental protection, protection of the rights and consumer interests the electric power shall be made, be transferred, be distributed, be delivered and consumed in the most effective way.

(2) the Basic principles of the organization and regulation of activities in electric utility sector are:

a) providing to the third parties, both physical, and legal, non-discriminatory and regulated access to power supply networks, including on the based on costs, transparent and predictable rates;

b) creation of optimal conditions for ensuring independence, first of all from the point of view of decision making, the operator of the transferring network and system, operators of distribution networks from suppliers or electric power producers;

c) promotion and ensuring the competition on electricity market;

d) providing favorable conditions for implementation of necessary investments in electric utility system, including for expansion of the transferring and distribution power supply networks;

e) respect for the principle of maximum efficiency in case of the minimum costs in case of production, transfer, distribution and electrical supply, management of electric utility system;

f) promotion of production of electricity from renewable energy resources and production of electricity by combined heat and power plants;

g) assistance to cross-border trade in the electric power and to cross-border flows of the electric power using rules of management and distribution of handling capacity of intersystem lines;

h) protection of legitimate interests of final consumers;

i) ensuring sufficient handling capacity of the transferring power supply network and sufficient production capacity for stable and reliable functioning of electric utility system;

j) determination of measures for safety of supply with the electric power of final consumers.

Article 4. Basic concepts

The basic concepts used in this law mean the following:

access to network - the right of physical persons and legal entities to use of services in transfer and/or electricity distribution on the terms of this law, including on connection to power supply networks by means of the connecting equipment of installations on production and electroinstallations of consumers;

accident - the incident which is expressed in damage of installations or power supply networks and/or dangerous variation of parameters of the mode of functioning of the electrical power equipment from the parameters provided by the operating technical regulations;

electric power quality - set of the characteristics of the electric power relating to tension frequency, amplitude and variation of tension, failure of tension, the phase asymmetry of tension, overstrain established by the national standard "Regulations of Quality of Electrical Energy in Utility Power Systems of General Purpose";

power plant - the technical installation or complex of technical installations making the electric power with use of different types of fuel (coal, gas, oil products, etc.) or other energy resources;

combined heat and power plant - power plant for the combined production of electrical and heat energy;

the power plant intended for internal use - power plant which more than 40 percent of annual power generation are used by the owner for internal consumption;

public power plant - power plant which at least 60 percent of annual power generation are used for the public purposes;

overload - situation in which intersystem communication between the transferring power supply networks or high-voltage power line cannot cope with all flows of the electric power which are result of transactions of members of electricity market at national or international level, in connection with lack of handling capacity of intersystem lines or the corresponding transferring power supply network;

the consumer - the wholesale or final consumer of the electric power;

the wholesale consumer - physical person - the individual entrepreneur or the legal entity acquiring the electric power for the purposes of resale in electric utility system or beyond its limits;

the residential customer - the physical person buying and consuming the electric power for domestic needs; the exception is constituted by business or professional activity;

the independent consumer - the consumer of electricity having the right of acquisition of electrical energy at any supplier or the producer, including foreign at the choice;

the final consumer - the residential customer or not residential customer buying the electric power for own consumption;

not residential customer - the physical person or legal entity acquiring and consuming the electric power for other needs than household;

control over the company - situation in which the electrical power company owing to the rights which it is allocated owing to the signed agreements or any otherwise separately or jointly and proceeding from legal or actual circumstances can influence in a decisive way other electrical power companies, in particular by means of:

a) ownerships on the property right or right to use by all assets of the company or their part;

b) acquisitions of rights or the conclusions of the agreements allowing to influence in a decisive way structure, voting power or decision making of the company by governing bodies;

electricity distribution - transportation of the electric power via the distribution power supply network for the purpose of delivery to consumers, but not including delivery;

balance between the demand and supply - accomplishment of the expected needs of consumers for the electric power without the need for application of measures for reducing consumption;

the measuring equipment - the device or system for measurement of quantity of the delivered electric power and, if necessary, capacity of the electric power for the purpose of the statement of invoices;

the balancing electrical energy - the electric power used for complete covering of electricity demand in addition to planned and confirmed at the beginning of month, providing covering of the real load graph in case of its variation from planned and/or variations of actually consumed amounts of electric power from confirmed at the beginning of settlement period;

expansion of the transferring or distribution power supply network - increase in handling capacity of the existing transferring or distribution power supply network or the construction of new power supply networks or sites of the transferring or distribution power supply network performed by the operator of the transferring network and system or the operator of distribution network for requirements satisfaction in the electric power of the physical persons and legal entities wishing to be connected to the power supply network;

cross-border flow - the physical flow of the electric power in transferring country power supply network which is result of impact of activities of producers and/or consumers because of limits of this country on its transferring power supply network;

delivery - sale, including resale, to consumers of the purchased electric power;

the supplier - physical person - the individual entrepreneur or the legal entity having the license for electrical supply;

the guaranteeing supplier - the supplier appointed for electrical supply to final consumers on special, established including by means of obligations on public servicing conditions;

the connecting equipment - electroinstallation by means of which communication between the power supply network and power plant or electroinstallation of the consumer is performed;

electroinstallation of the consumer - complex of electroinstallations of the final consumer, held for use the electric power;

the intersystem line - the installations and the equipment used for connection of two or more electric utility systems;

horizontally integrated company - the company performing at least one of the following types of activity: production, transfer, distribution or electrical supply and another, not connected with electric utility sector activities;

vertically integrated company - the company or group of companies which can exercise mutual control or within which the same person or the same persons can exercise, directly or indirectly, control as it is determined by this law, and carry out at least one of deyatelnost on transfer or distribution and at least one of deyatelnost on production or electrical supply;

the related company - the affiliated commercial society, the companies belonging to one and those/same shareholders or commercial societies which, without being dependent from each other, are joint under single management or are controlled by the bodies consisting generally of the same persons;

auction - procedure by means of which the planned additional requirements and stand-by capacity become covered due to deliveries from the new or existing power plants;

the direct electric line - the electric line connecting the power plant isolated from electric utility system with electroinstallation of the final consumer or the electric line connecting power plant with the electric power supplier acquiring the electric power for own needs or for delivery to independent consumers;

the place of consumption - location of electroinstallations of final consumers where through one electroinstallation of the consumer the electric power delivered through one or several units of the connecting equipment is consumed;

management of efficiency of energy consumption/demand - global or integral approach for the purpose of influence on amount and planning of electric power consumption for decrease in consumption of primary energy and energy from peak sources by provision of priority to investments into actions for energy efficiency or into other measures, such as agreements of supply with the electric power with breaks, investments for increase in production capacities if they are the most effective and economic options taking into account the positive impact exerted by economical electric power consumption on the environment on safety of supply with the electric power, and also on the costs for electricity distribution connected with these measures;

obligations on public servicing - obligations of owners of licenses for activities in electric utility sector which can be related to safety, including safety of deliveries, to regularity, quality and rates and electricity prices, and also to environmental protection, including to energy efficiency and protection of climate;

the operator of distribution network - legal person owner of the license for electricity distribution who owns distribution power supply networks performs function of electricity distribution and is responsible for operation, servicing and development of distribution power supply networks in certain zones and when it is pertinent, to intersystem contact with other power supply networks, and also for providing long-term capability of the distribution power supply network to meet reasonable demand for electricity distribution;

the operator of the transferring network and system - the legal entity - the owner of the license for transmission of electricity which owns the transferring power supply networks performs functions of transmission of electricity and operational and technology management of electric utility system and is responsible for operation, servicing, development of the transferring power supply networks in certain zones and when it is pertinent, to intersystem contact with other power supply networks, and also for providing long-term capability of the transferring power supply network to meet reasonable demand for transmission of electricity;

economic benefit - ranging of supply sources of the electric power according to economic criteria;

electricity market - the organized sphere of purchase and sale of the electric power by participants of the market and provision of system services for the purpose of regular and reliable supply of consumers the electric power within electric utility system;

long-term planning - planning on long-term basis of necessary investments into the generating capacities, in the transferring and distribution power supply networks for the purpose of satisfaction of system electric power demand and electricity supply of consumers;

the producer - physical person - the individual entrepreneur or the legal entity who owns power plant and operates it, making the electric power;

production - action for production of electricity by operation of power plant;

the distributed production - production of electricity by the power plant connected to the distribution power supply network;

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