LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 9, 2004 No. 588-II

About power industry

This Law governs the public relations arising in production process, transfer and consumption of electrical energy.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) emergency reservation - the minimum expense of electrical energy (the minimum power consumption) of the consumer's objects with completely stopped engineering procedure providing their condition, and also functioning of current collectors of systems of emergency and security lighting, the security and fire alarm, pumps of fire extinguishing, vodootliv, safe for life, human health and the environment, chilling of the capital processing equipment, communication and emergency ventilation;

2) emergency violation - the inadmissible variations of technology parameters of work of electroinstallation or its elements which caused their conclusion from work or damage during operation;

2-1) Accident mode - the measure entered by the system operator for preserving steady work of single electric utility system of Kazakhstan or its separate parts;

2-2) passport of readiness - annually issued document confirming readiness of the power making and power transferring organizations to work during the autumn and winter period;

2-3) single purchaser - the legal entity determined by authorized body, performing centralized purchase of service in maintenance of readiness of electric power and centralized rendering service in ensuring readiness of electric power for execution of loading according to the procedure, provided by this Law;

2-4) generating installation - the device developing electrical energy;

2-5) generating installation with the maneuverable mode of generation - the generating installation having adjusting electric power;

2-6) biddings on construction of the generating installations which are again put into operation with the maneuverable mode of generation (further - biddings) - the process organized and which is carried out by the organizer of biddings in electronic system on the basis of auction, directed to selection of projects on construction of the generating installations which are again put into operation with the maneuverable mode of generation and determination of their individual rates for service in maintenance of readiness of electric power;

2-7) participant of biddings on construction of the generating installations which are again put into operation with the maneuverable mode of generation (further - the participant of biddings) - the legal entity who was registered by electronic system of the organizer of biddings and received participant status;

2-8) organizer of biddings on construction of the generating installations which are again put into operation with the maneuverable mode of generation (further - the organizer of biddings) - the legal entity, more than fifty percent of shares (share in the authorized capital) which belong to the state and persons affiliated with it, determined by authorized body, performing according to the procedure, provided by this Law, the organization and carrying out biddings;

2-9) individual rate for service in maintenance of readiness of electric power in case of construction of the generating installations which are again put into operation with the maneuverable mode of generation - the rate determined following the results of biddings;

2-10) planned balance of generation consumption - difference of the values of production and consumption of electrical energy (in one hour of operational days) the subject of the balancing market of electrical energy approved by the system operator in the hourly daily schedule of production consumption of electrical energy in kW. h;

2-11) No. 223-VII ZRK is excluded according to the Law of the Republic of Kazakhstan of 19.04.2023

2-12) actual balance of generation consumption - difference of the actual values of production and consumption of electrical energy (in one hour of operational days) the subject of the balancing market of electrical energy in kWh;

2-13) hybrid group - group of subjects of the wholesale market of electrical energy with cumulative share of use of renewable energy resources in case of production of electrical energy at least twenty five percent which are in one power node and included in the list of hybrid groups according to the procedure approved by authorized body;

2-14) administrator of hybrid group - the legal entity entering into hybrid group, performing acquisition (purchase) of electrical energy from the power making organizations entering into hybrid group, for the purpose of its subsequent realization (sale) to consumers in this hybrid group and (or) in the balancing market of electrical energy, and also being provider of balance for the power making organizations and the consumers of electrical energy entering into hybrid group;

2-15) consumer of hybrid group - the consumer who is the subject of the wholesale market of electrical energy and included in the list of hybrid groups;

2-16) dispatching technology management - the process performed by the dispatcher and intended for the solution of tasks of control and management of the modes of functioning of power networks by means of the automated systems of dispatching and technology management, and also acceptance and processing of messages from physical persons and legal entities on premises of origin or emergence of the technology violations requiring taking measures of reaction and elimination of refusals and damages;

2-17) individual rate for service in maintenance of readiness of electric power of the power making organizations which are again put into operation - the rate determined following the results of the tender held by authorized body for construction of the generating installations which are again put into operation, the including return of the amount of capital expenditures and remunerations on the corresponding loans attracted to project implementation and profitability rate on the invested capital which is subject to annual indexation on the rate of inflation determined by data of authorized body in the field of the state statistics, or annual indexation taking into account change of the exchange rate of national currency to foreign currencies determined by data of National Bank of the Republic of Kazakhstan;

3) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012 (became effective since January 1, 2019);

4) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012 (became effective since January 1, 2019);

4-1) green rate - the rate for sale by the single purchaser of the electrical energy developed by objects for use of renewable energy resources, established by the single purchaser of electrical energy according to the rules of determination of rate for support of renewable energy resources approved by authorized body;

4-2) consumer of green energy - the subject of the wholesale market of electrical energy acquiring at the single purchaser of electrical energy the electrical energy developed by objects for use of renewable energy resources on the green rates determined according to this Law;

5) system accident - the emergency violation of working hours of power generation facilities which led to loss of stability of single electric utility system of the Republic of Kazakhstan and separation it on part;

6) system services - the services rendered by the system operator according to this Law;

7) the system operator - the national company exercising centralized supervisory control, ensuring parallel work with power supply systems of other states, maintenance of balance in single electric utility system of the Republic of Kazakhstan, rendering system services and acquisition of support services at subjects of the wholesale market of electrical energy, and also maintenance and maintenance in operational readiness of national power grid and providing its development;

7-1) market of system and support services - system of the relations between the system operator and subjects of the wholesale market of electrical energy connected with rendering system and support services;

8) No. 121-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 08.07.2024

8-1) No. 121-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 08.07.2024

9) No. 121-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 08.07.2024

10) No. 121-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 08.07.2024

11) investing program - the program directed to creation of new assets, expansion, updating, reconstruction and modernization of the existing assets;

12) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012;

13) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012;

14) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012;

15) the device of commercial accounting - the technical device intended for commercial accounting of electric power, electrical energy, allowed for use according to the procedure, established by the legislation of the Republic of Kazakhstan;

15-1)  No. 284-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 26.12.2019;

15-2) buyer of electrical energy in the wholesale market - the legal entity acquiring electrical energy for the purpose of electric utility service or consumption and also coverings of normative and technical losses;

15-3) autumn and winter period - heating season which beginning and completion are established by local executive bodies;

16) single electric utility system of the Republic of Kazakhstan - set of the power plants, power lines and substations providing reliable and high-quality power supply of consumers of the Republic of Kazakhstan;

17) reserve of electric power of single electric utility system of the Republic of Kazakhstan - the electric power of aggregates of the power making organizations having required structure, size, and also the degree of readiness for scheduling conforming to the requirements provided by the agreement;

18) support services - the services acquired by the system operator at subjects of the wholesale market of electrical energy for providing necessary amounts and structure of adjusting reserves of electric power, regulation of active and reactive capacities in start of power supply system from deenergized condition;

18-1) state technical inspector - the official of authorized body exercising the state control of observance of requirements of the legislation of the Republic of Kazakhstan on power industry;

18-2) Market Council - the non-profit organization performing activities for monitoring of functioning of the market of electrical energy and capacity, and also other functions provided by this Law;

19) operational days - the current days during which the system operator performs transactions on centralized supervisory control of execution of the purchase and sale agreements of electrical energy signed by subjects of the wholesale market of electrical energy;

20) centralized supervisory control - the process of continuous management performed by the system operator technically the coordinated work of the power making, power transferring, power supplying organizations and consumers of electrical energy, the providing normative level of reliability of single electric utility system of the Republic of Kazakhstan and respect for normative quality of electrical energy;

20-1) operator of the market of centralized trade - the organization performing the centralized biddings by electrical energy including spot biddings electrical energy, and service in maintenance of readiness of electric power;

20-2) positive imbalance - imbalance which value is more than zero (not negatively), in kWh;

20-3) operational days - the calendar days which are beginning at 00:00 o'clock and coming to an end at 24:00 o'clock Central European time during which the realization of the daily schedule of production consumption of electrical energy is enabled;

21) interregional and (or) interstate power lines - power lines of 220 kilovolts and above, providing transfer of electrical energy between regions and (or) the states;

22) the regional electric grid company - the power transferring organization having direct technology connection with the power making organization and (or) national power grid owning cable or air-lines of electricity transmission at least four classes of tension (220, 110, 35, 20, 10 (6), 0,4 of kilovolts), operating power networks of the regional level and having at least 10 000 attached consumers;

22-1) regulation of operational fuel reserve - the minimum operational fuel reserve of the power making organizations in daily calculation;

22-2) adjusting electric power - the range (share) of the located electric power within which, (which) the power plant is capable to work with the set parameters;

22-3) expert organization - the legal entity performing activities for conducting energy examination according to the legislation of the Republic of Kazakhstan;

22-4) provider of balance - the subject of the wholesale market of electrical energy which assumed responsibility for financial settlement in the balancing market of electrical energy of own imbalances and imbalances of other subjects of the balancing market of electrical energy according to the agreements signed with them, included in the list of providers of balance created by settlement center of the balancing market;

22-5) settlement center of the balancing market - the organization determined by authorized body, performing centralized purchase and sale of the balancing electric power and negative imbalances in the balancing market of electrical energy according to the procedure and terms which are provided by this Law;

23) the balancing electric power - the electrical energy intended for covering of positive imbalances in case of realization by the system operator of the approved hourly daily schedule of production consumption of electrical energy;

23-1) limiting rate for the balancing electric power - the selling price of the balancing electric power to settlement center of the balancing market determined according to the procedure which is most permitted for subjects of the balancing market of electrical energy, provided by this Law;

23-2) imbalance - difference of planned and actual balance of generation consumption in kWh;

23-3) negative imbalance - imbalance, which value less than zero (negatively), in kWh;

23-4) limiting rate for negative imbalances - the purchase price of negative imbalances at settlement center of the balancing market determined according to the procedure which is most permitted for subjects of the balancing market of electrical energy, provided by this Law;

24) technical scheduling - the service rendered by the system operator on implementation of centralized supervisory control of the modes of production and consumption of electrical energy in single electric utility system of the Republic of Kazakhstan;

24-1) technology reservation - the minimum expense of electrical energy (the minimum power consumption) and time duration necessary for completion of continuous engineering procedure and prevention of danger to life of people and the environment;

24-2) technology violation - refusal or damage to machinery, power plants and networks, including owing to ignition or explosions, variation from the set modes, unauthorized shutdown or restriction of operability of the equipment or its defect which led to violation of production process, transfer, consumption of electrical and (or) heat energy;

24-3) No. 101-VII ZRK is excluded according to the Law of the Republic of Kazakhstan of 03.01.2022

24-4) authorized body in the field of the housing relations and housing and communal services - the central executive body performing management in the field of power industry regarding consumption of electrical energy and methodical providing in this industry;

24-5) residential customer - the physical person using electrical energy for own domestic needs which are not connected with production (sale) of goods, works and provision of services;

25) the consumer - the physical person or legal entity consuming electrical energy on the basis of the agreement;

26) authorized body - the state body performing management in the field of power industry;

26-1) No. 89-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 11.07.2017;

27) national power grid - set of the substations, distributing devices, interregional and (or) interstate power lines and power lines performing issue of electrical energy of power plants of 220 kilovolts and above which are not subject to privatization and are transferred to the national company according to the procedure and on the conditions determined by the Government of the Republic of Kazakhstan;

27-1) service in transfer of electrical energy in national power grid - the service rendered by the system operator to subjects of the wholesale market of electrical energy and the organizations of other states according to the procedure, determined by this Law;

27-2) service in use of national power grid - the service in ensuring maintenance and maintenance in operational readiness of national power grid relating to the sphere of transfer of electrical energy according to the legislation of the Republic of Kazakhstan on natural monopolies, rendered by the system operator to subjects of the wholesale market of electrical energy according to the procedure, determined by this Law;

27-3) conditional consumer - the wholesale consumer acquiring electrical energy at the power making organizations entering with him one group of persons, industrial complex and the skilled consumer determined according to the Law of the Republic of Kazakhstan "About support of use of renewable energy resources";

28) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012 (became effective since January 1, 2019);

29) No. 121-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 08.07.2024

29-1) power networks - set of substations, distributing devices and the power lines connecting them intended for transfer of electrical energy;

30) the conservation zone of power networks - the parcels of land, water and airspace, safety of power networks which are taken away for the purpose of providing, creations of normal service conditions, prevention of their damage, and also accidents among the population which appeared in the conservation zone of these networks;

30-1) electrocharging station - the electroinstallation intended for charging of the motorized vehicles equipped with electric motors;

31) service in regulation of electric power - the service rendered to the system operator, to the power transferring, power supplying organizations and the consumers who are subjects of the wholesale market of electrical energy for compensation of variations of the actual electric load of subjects of the wholesale market of electrical energy from the declared electric loading;

31-1) services in maintenance of readiness of electric power - the service rendered by the power making organizations to the single purchaser in maintenance of readiness of the electric power of the generating installations certified in accordance with the established procedure for execution of loading;

31-2) limiting rates for service in maintenance of readiness of electric power - the approved by authorized body for the term equal to seven years, maximum size of rate (price) of service in maintenance of readiness of electric power for all operating power making organizations (except for amounts of service in maintenance of readiness of electric power when which rendering the operating power making organizations and winners of the tender for construction of the generating installations which are again put into operation and also winners of biddings use the individual rate for service in maintenance of readiness of electric power established by authorized body);

31-3)  No. 394-V ZRK is excluded compliance with the Law of the Republic of Kazakhstan of 12.11.2015

31-4) individual rates for service in maintenance of readiness of electric power - the rate determined on the basis of the signed investment agreement between authorized body and the power making organization on upgrade, expansion, reconstruction and (or) updating of the generating installations;

31-5) services in ensuring readiness of electric power for execution of loading - the service rendered by the single purchaser in ensuring readiness of the electric power of the generating installations in single electric utility system of the Republic of Kazakhstan certified in accordance with the established procedure for execution of loading;

31-6) markets of electric power - system of the relations between subjects of the wholesale market of electrical energy connected with maintenance by the power making organizations of the generating equipment in ready state to development of electrical energy, updating, support, reconstruction and modernization of the existing production assets, and also their creation;

31-7)  No. 394-V ZRK is excluded compliance with the Law of the Republic of Kazakhstan of 12.11.2015

31-8) centralized biddings by electric power - the process directed to the conclusion of service provision agreements on maintenance of readiness of electric power between the power making organizations and the single purchaser in electronic system of trade;

31-9) lists of power plants - the approved list of the power making organizations corresponding to criteria the established this Law;

32) power industry - the sphere of production, transfer, supply and consumption of electrical energy;

32-1) single purchaser of electrical energy - the legal entity with absolute state participation determined by authorized body, performing centralized purchase and centralized sale of planned amounts of electrical energy according to the procedure, provided by this Law;

32-2) net - the consumer of electrical energy (further - net - the consumer) - the physical person or legal entity providing fully or partially own consumption of electrical energy and (or) heat energy from the small-scale object for use of renewable energy resources belonging to it on the property right or other corporeal right, connected to distribution power network and equipped with systems of separate accounting of amounts of consumption of electrical energy from network and scopes of supply in it including the combined installations of renewable energy resources;

32-3) commercial accounting of electrical energy - the accounting of electrical energy necessary for settlement between the parties under agreements of transfer of electrical energy, and also under agreements of electric utility service;

33) the subjects of the wholesale market of electrical energy which - are power making, power transferring, power supplying the organizations which are power making the organizations using the renewable energy resources which are power making the organizations using the secondary energy resources which are power making the organizations using energy waste recycling, the consumers of electrical energy, digital mayner and administrators of hybrid groups included in the list of subjects of the wholesale market of electrical energy created by the system operator and also the system operator, the operator of the market of centralized trade and the single purchaser of electrical energy;

33-1) limiting rate for electrical energy - the monetary value of cost of the developed electrical energy approved by authorized body each seven years the power making organization included in group of the power making organizations realizing electrical energy, consisting of production costs of the electrical energy and profit margin determined by the technique established by authorized body;

34) the guaranteeing supplier of electrical energy - the power supplying organization performing power supply of consumers in cases of the termination of power supply of consumers by all other power supplying organizations not on fault of the consumer;

35) transfer of electrical energy - technology connected actions directed to transfer and (or) distribution of electrical energy on power networks;

35-1) automated system of commercial accounting of electrical energy - set of measuring instruments and the hardware and software for measurements, collection, processing, storage and data transmission of accounting of electrical energy;

36) the daily schedule of production consumption of electrical energy - the document approved by the system operator regulating hourly sizes of production and consumption of electrical energy for every calendar day according to the agreements on purchase and sale of electrical energy signed by participants of the wholesale market in the markets of the decentralized purchase and sale of electrical energy and centralized trade by electrical energy;

37) the organization of balancing of production consumption of electrical energy - the service rendered by the system operator on the organization of functioning of the balancing market of electrical energy;

37-1) group of the power making organizations realizing electrical energy, - the set of the power making organizations created by criteria: type of the power making organizations, installed capacity, type of the used fuel, remoteness from the location of fuel, arrangement in one part of single electric utility system of the Republic of Kazakhstan in which there are no restrictions of technical nature for transfer of electrical energy;

38) the retail market of electrical energy - the system of relations functioning on the basis of agreements of electric utility service between the power supplying organizations included in the list of subjects of the wholesale market of electrical energy created by the system operator, and subjects of the retail market of electrical energy;

39) subjects of the retail market of electrical energy are consumers of electrical energy and the power transferring organizations which are not included in the list of subjects of the wholesale market of electrical energy created by the system operator;

39-1) wholesale market of electrical energy and capacity - the system of relations between subjects of the wholesale market of electrical energy consisting of the wholesale market of electrical energy, the balancing market of electrical energy, the market of electric power and the market of system and support services;

40) the wholesale market of electrical energy - the system of the relations connected with purchase and sale of planned amounts of electrical energy, functioning on the basis of purchase and sale agreements of electrical energy between subjects of the wholesale market of electrical energy;

41) centralized trade by electrical energy - the transactions of purchase and sale of electrical energy performed between the power making organizations and the single purchaser and also between the single purchaser and digital mayner in electronic system of trade according to this Law;

42) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012; 12.11.2015 No. 394-V ZRK (became effective since January 1, 2019);

43) spot biddings of electrical energy (further - spot biddings) organized trade in hourly amounts of electrical energy on the short-term basis in the modes: in day ahead and within operational days;

44) the balancing market of electrical energy - system of relations between subjects of the balancing market of electrical energy and settlement center of the balancing market, the electric power imbalances resulting from physical settlement in single electric utility system of the Republic of Kazakhstan the system operator and connected with purchase and sale of the balancing electric power and negative imbalances;

45) the imitating mode of the balancing market of electrical energy (further - the imitating mode) - functioning of the balancing market of electrical energy without implementation of financial settlement of imbalances of electrical energy;

46) subjects of the balancing market of electrical energy are subjects of the wholesale market of electrical energy;

47) energy examination - the expertize which is carried out in the field of power industry on compliance to regulatory legal acts of the Republic of Kazakhstan on the operating objects, projects of the reconstructed, modernized and again under construction objects in the field of power industry, and also in case of investigation of technology violations and industrial traumatism on them according to the rules approved by authorized body;

48) the power transferring organization - the organization rendering service in transfer of electrical energy on the basis of agreements;

49) the power supplying organization - the organization performing sale to consumers of the purchased electrical energy;

50) the power making organization - the organization performing production of electrical and (or) heat energy for own needs and (or) realization, except for net - the consumers who are those according to the legislation of the Republic of Kazakhstan in the field of support of use of renewable energy resources;

51) No. 25-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 04.07.2012 (became effective since January 1, 2019).

52) selling price of electrical energy from the power making organization - the selling price of electrical energy of the power making organization included in the corresponding group of the power making organizations realizing electrical energy, which is not exceeding its limiting rate for electrical energy increased by the corresponding hour rates determined according to the procedure, established by authorized body.

Article 2. Legislation of the Republic of Kazakhstan on power industry

1. The legislation of the Republic of Kazakhstan on power industry is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Chapter 2. State regulation in the field of power industry

Article 3. The purposes and tasks of state regulation in the field of power industry

1. State regulation in the field of power industry is performed for the purpose of:

1) maximum satisfaction of demand of energy consumers and protection of the rights of participants of the market of electrical energy;

2) ensuring safe, reliable and stable functioning of electrical power complex of the Republic of Kazakhstan;

3) unities of management of electrical power complex of the Republic of Kazakhstan as especially important life support system of economic and economic and social complexes of the country.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info