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LAW OF THE REPUBLIC OF MOLDOVA

of May 27, 2016 No. 107

About the electric power

(as amended on 26-07-2018)

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Purpose of the law and scope of application

(1) the Purpose of this law is: creation of the general legal basis of the organization, regulation, ensuring effective functioning and monitoring of the electric utility sector designed to supply consumers with the electric power in the conditions of availability, availability, reliability, uninterruptedness, quality and transparency; providing open entry to electricity market; encouragement of production of electricity; ensuring adequate balance between the demand and supply, proper power level of intersystem connections for simplification of cross-border exchange of the electric power; market development of the electric power and integration into the competitive market of the electric power; establishment of the measures designed to guarantee safety of supply with the electric power, proper accomplishment of obligations on rendering public service, ensuring compliance with the rights of consumers, and also regulations on environmental protection.

(2) fall Under operation of this law:

a) production of electricity, including production of electrical and heat energy on combined heat and power plants in the cogeneration mode;

b) transmission of electricity, including cross-border flows of the electric power in the context of import, export and transit of the electric power, and management of electric utility system;

c) electricity distribution;

d) electrical supply;

e) determination and approval of regulated prices for the electric power and the regulated rates connected with access to power supply networks and also for other services rendered by the electrical power companies according to this law;

f) licensing of types of activity on electricity market;

g) electricity market, access to electricity market and management of electricity market;

h) organization, functioning and monitoring of electric utility system;

i) safety and reliability of electricity supply of final consumers;

j) access to public or private property for the purpose of construction, operation, servicing, recovery or upgrade, including technology retrofitting, power supply networks;

k) regulated access for the third parties to power supply networks;

l) consumer protection.

Article 2. Basic concepts

The basic concepts used in this law mean the following:

access to network – the right of the user of system, including the final consumer to receive and deliver the electric power in quantity and during the periods specified in the service provision agreement on transfer, in the service provision agreement on distribution, by use of networks of electricity transmission, distribution power supply networks in accordance with the terms, established by this law;

the act of compliance – the allowing document issued by body of the state energy supervision as a result of check of the new or existing electroinstallation or the new or existing power plant which confirms without being limited to it, compliance of the made electroinstallation or the constructed power plant to permission to connection, the project documentation, safety requirements;

accident – violation in functioning of installations or the equipment of the power supply network (power supply networks) which led to dangerous variation of parameters of the mode of functioning of the corresponding power supply network from the parameters provided by industry normative and technical documents;

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 including renewable energy resources;

city combined heat and power plant – the combined heat and power plant or electromain line of highly effective cogeneration sending heat energy to centralized system of providing with heat energy;

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

the authorized power plant working at renewable energy resources – the power plant making the electric power from renewable energy resources which owner has the right to obligatory purchase at him all quantity of the electric power sent to power networks in accordance with the terms of the Law on promotion of energy use from renewable sources No. 10 of February 26, 2016;

public power plant – power plant which at least 60 percent of annual power generation are intended for sending to power supply networks and sales on electricity market;

certification – the procedure within which observance by the operator of the transferring system of requirements for its department and independence, and also other major requirements imposed to the operator of the transferring system by this law and which is the precedent condition of appointment of the operator of the transferring system by licensing is considered;

centralized management of electric utility system – planning and single operational and technology management of electric utility system for ensuring its balancing and safety of its functioning, ensuring stability of frequency, tension and uninterruptedness of electricity supply, for regulation of flows of the electric power in networks of electricity transmission and for coordination of exchange of the electric power with other electric utility systems;

overload – provision in case of which intersystem connection cannot cope with all physical flows of the electric power resulting from the international transactions requested by members of electricity market because of absence or shortage of capacity of intersystem connections and/or the relevant networks of electricity transmission;

the consumer – the wholesale or final consumer;

the wholesale consumer – physical person – the individual entrepreneur or the legal entity buying the electric power for resale in or out of electric utility system;

the residential customer – the physical person buying the electric power for own domestic needs which are not connected with its commercial use for implementation of business or professional activity;

the authorized consumer – the consumer of electricity who is freely choosing the supplier from whom he buys the electric power;

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 buying the electric power for other purposes than own domestic needs, including producers and wholesale consumers;

the non-commercial not residential customer – non-governmental organization with the status of public advantage, religious cult with its components, buying the electric power for own needs which are not connected with its commercial use;

socially vulnerable consumer – the residential customer determined according to regulations in the field of social protection as vulnerable person or the member of vulnerable family;

the delivery agreement of the electric power – the agreement based on which the electric power is delivered to the consumer, but who does not turn on the derivative tool of the electric power;

control over the company – the rights, agreements or other means which everyone separately or all together with accounting of the corresponding legal or actual circumstances give opportunity to exert decisive impact on the company, in particular, through the property rights or uses to all assets of the company or their part and/or the rights or agreements exerting decisive impact on structure of the company, vote or decisions of its governing bodies;

development of the distribution power supply network – increase in capacity of the existing distribution power supply network or construction of new distribution power supply networks or sites of distribution power supply networks;

development of network of electricity transmission – increase in capacity of the existing network of electricity transmission or construction of new networks of electricity transmission or sites of networks of electricity transmission;

scheduling – the technical activities characteristic of electric utility sector performed by specialized divisions of the operator of the transferring system for the purpose of the approved operation of the installations and the equipment constituting electric utility system which requires single management;

electricity distribution – transportation of the electric power through distribution power supply networks for the purpose of its delivery to consumers, not including delivery;

balancing – complex of the actions and processes performed in all intervals of time by means of which the operator of the transferring system provides in the continuous mode balance between production, import, export and electric power consumption on condition of maintenance of frequency within the preset stability, for observance in necessary quantity of reserve for each process of maintenance of frequency and substitution of reserve for the purpose of ensuring necessary quality according to the Technical regulations of power supply networks approved by National regulation agency in power;

balance between the demand and supply – satisfaction of the forecasted demand on 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 electric current for the purpose of invoicing;

the authorized electrician – the physical person who acquired the right to make electroinstallations from body of the state energy supervision and, respectively, the right to constitute documentation on the performed works;

the balancing electric power – the electric power necessary for balancing of electric utility system for the purpose of complete covering of electricity demand in addition to planned and confirmed, providing covering of the real load graph;

the declared export – sending the electric power from electric utility system of the Republic of Moldova based on the contractual agreement which provides that the corresponding simultaneous acceptance (the declared import) of the electric power will happen in the participating country of Energy community or in the third country;

outsourcing of service or work – transfer of the license by the owner to the third party of service or work which it shall carry out according to this law and conditions of the license, not assuming license concession to the third party;

technology flow – unplanned flow of the electric power on intersystem connections with the next electric utility systems;

cross-border flow of the electric power – the physical flow of the electric power in networks of electricity transmission of the Republic of Moldova which is result of impact of activities of producers and/or consumers because of limits of the Republic of Moldova on its network of electricity transmission;

electrical supply – sale, including resale, the electric power to consumers;

the supplier – the electrical power company owner of the license for electrical supply delivering the electric power according to this law;

the supplier of universal service – the supplier who in the context of obligations on rendering public service is appointed for providing with universal service residential customers and small economic societies;

the central electric power supplier – the supplier appointed by the Government for purchase of the electric power from the authorized power plants working at renewable energy resources, and the electric power made by city combined heat and power plants and its deliveries to electricity market at the regulated prices approved by National regulation agency in power according to this law;

the supplier as a last resort – the supplier who in the context of obligations on rendering public service is appointed during the limited period of time to deliver the electric power to the final consumers who lost under certain circumstances of the supplier on the regulated special conditions established by this law;

group of balancing – the group consisting of one or several members of electricity market who transfer obligations on responsibility for balancing responsible groups of balancing;

the generating block – set of the rotor machines intended for transformation of energy of other type in the electric power;

the declared import – input of the electric power to the Republic of Moldova with simultaneous delivery of the electric power (the declared export) from the participating country of Energy community or the third country;

electroinstallation – the connecting equipment and installation of consumption;

the connecting equipment – electroinstallation by means of which communication between the power supply network and power plant or installation of consumption is performed;

consumption installation – complex of electroinstallations of the final consumer, held for use the electric power;

the derivative tool of the electric power – the financial instrument designed to insure members of electricity market against possible price fluctuations on the electric power in the market in case this tool belongs to electric utility sector;

intersystem connection – the installations and the equipment used for interconnection of two electric utility systems;

the electrical power company – the physical person or legal entity in accordance with the established procedure registered in the Republic of Moldova as the company, performing at least one of types of activity on production, transfer, distribution or electrical supply and also the management of electricity market performing commercial, technical functions and/or service functions in connection with the specified types of activity, but without participation of final consumers;

the integrated electrical power company – horizontally or vertically integrated electrical power company;

horizontally integrated electrical power company – the electrical power company performing at least one of types of activity on production with sales objective, to transfer, distribution or electrical supply, and also another, not connected with electric utility sector, activities;

vertically integrated electrical power company – the electrical power company or group of companies which can exercise mutual control or within which the same person or the same persons has the right to exercise directly or indirectly control as it is determined by this law, performing at least one of types of activity on transfer or electricity distribution and at least one of types of activity on production or electrical supply;

the related company – the affiliated company which has the majority of voting powers at other company and/or the right to appoint or recall most of members of governing bodies of other company and which at the same time is shareholder, the founder of this company and/or which, under the agreement with other shareholders, founders of this company controls voting powers in its structure; and/or dependent enterprise in relation to the dominating company; and/or the associate having significant effect on financial and managerial policy of other company; and/or the company which is under the influence of other company; and/or the companies belonging to one and those/same shareholders, founders; and/or economic societies which, without being dependent from each other, are joint under single management or are controlled by the bodies consisting in the majority the of the same persons; and/or other types of affiliated economic societies;

the direct electric line – the electric line connecting the power plant isolated from electric utility system with electroinstallations of the isolated consumer or the electric line connecting power plant with the electric power supplier for the purpose of its delivery directly to own rooms, branches and final consumers;

the place of consumption – location of electroinstallations of the final consumer where by means of one installation of consumption the electric power delivered through one or several units of the connecting equipment is consumed;

management of energy efficiency and/or demand – integrated or complete approach for the purpose of influence on quantity and the period of electric power consumption for decrease in consumption of primary energy and peak loads by provision of priority to investments into actions for energy efficiency or into other measures, such as agreements on the interrupted electrical supply, to investments into increase in production capacity if they are the most effective and economic options taking into account the positive environmental impact exerted by economical electric power consumption, on safety of supply with the electric power, and also on the costs for service in electricity distribution connected with these measures;

the obligation on rendering public service – the obligation assigned to the electrical power company in general economic interests which can concern safety, including safety of supply with the electric power, uninterruptedness, quality, the prices of deliveries, and also environmental protection and which shall not be discrimination and shall not distort the competition, except that which is strictly necessary for implementation of the obligation on rendering this public service;

the operator of electricity market – the electrical power company owner of the license for the management of electricity market responsible for management and ensuring functioning of the organized markets of the electric power;

the operator of distributive system – the electrical power company owner of the license for electricity distribution which owns distribution power supply networks performs functions on electricity distribution and is responsible for operation, servicing, upgrade, including technology retrofitting, and development of distribution power supply networks, and also for providing long-term capability of distribution power supply networks to satisfy reasonable level of demand on provision of service in electricity distribution;

the operator of the transferring system – the electrical power company owner of the license for transmission of electricity which owns networks of electricity transmission performs functions on transmission of electricity and operational technology management of electric utility system and is responsible for operation, servicing, upgrade, including technology retrofitting, and development of networks of electricity transmission and intersystem connections, and also for providing long-term capability of networks of electricity transmission to satisfy reasonable level of demand on provision of service in transmission of electricity;

the system operator – the operator of the transferring system and the operator of distributive system;

economic priority – hierarchization of sources of electricity supply by economic criteria;

quality parameters – set of the characteristics of the electric power established in the quality standards approved by national authority on standardization and specified as obligatory in Regulations on electrical supply, Regulations on service quality on transfer and electricity distribution and Rules of electricity market;

the member of Energy community – the agreement party about Energy community, and also the European Union and its state members;

the party responsible for balancing, – the member of electricity market registered by the operator of the transferring system and responsible for the notification of the last on the balanced program of production, sale, purchase and electric power consumption in interval of time for which the imbalance is calculated, and assuming the financial responsibility for the imbalance which arose owing to variation from the program on which it was notified and which was accepted by the operator of the transferring system;

the member of electricity market – the physical person or legal entity selling or buying the electric power on electricity market according to provisions of this law and Rules of electricity market;

the market of bilateral agreements – the market in which sale and purchase of the electric power are performed directly between members of electricity market based on bilateral agreements of purchase and sale of the electric power;

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 uninterrupted and reliable providing consumers with the electric power within electric utility system;

the market of the balancing electric power – the organized wholesale market, held for sale and purchases of the electric power for the purpose of covering of requirements of electric utility system for balancing;

the current electricity market – the organized wholesale market in which sale and purchase of the electric power are performed on the basis of the transactions performed in day of delivery after closing of electricity market for the days ahead;

electricity market for the days ahead – the organized wholesale market in which sale and purchase of the electric power are performed for each hour of every day, about day of physical delivery of the electric power;

long-term planning – planning on long-term basis of necessary investments into production capacities, in networks of electricity transmission and distribution power supply networks for the purpose of satisfaction of system electric power demand, diversification of sources and guaranteeing uninterrupted supply of the electric power to consumers;

the tender – the procedure by means of which the installed capacity of production of electricity increases by investments into new capacities or by building-up of the existing capacities;

the producer – the electrical power company which owns power plant operates it and makes the electric power;

production of electricity – action for production of electricity;

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

connection point – physical point of the power supply network to which by means of the connecting equipment the power plant or installation of consumption is connected;

power of the power plant – the total size of rated active power of generators of the electric power of power plant;

connection – realization by the operator of the transferring system or the operator of distributive system of the connecting equipment of the applicant – the potential final consumer and/or giving under tension of installation of consumption or power plant on conditions on which the act of compliance of electroinstallation or power plant was issued;

responsible groups of balancing – the member of electricity market responsible for the notification of the operator of the transferring system on the balanced programs of production, sale, purchase and electric power consumption of members of electricity market for whom it assumed responsibility on balancing and the financial responsibility for the imbalances allowed by group of balancing;

the power supply network – network of electricity transmission and the distribution power supply network;

the distribution power supply network – the system consisting of electric lines of high, average and low voltage with the equipment and installations for transformation and switching and also with the auxiliary installations located behind point of connection to network of electricity transmission or to power plant and is higher than point of connection of electroinstallations of final consumers, serving for electricity distribution;

network of electricity transmission – the system consisting of electric lines of high voltage with the equipment and installations for transformation and switching, and also with auxiliary installations, serving for transmission of electricity;

safety – safety of delivery and delivery of the electric power, and also technical safety;

safety of supply with the electric power – capability of electric utility system to deliver to final consumers the electric power according to provisions of this law;

safety of operation of the power supply network – uninterrupted operation of network of electricity transmission and, on circumstances, the distribution power supply network in the predicted circumstances;

additional services – the services accompanying transfer or electricity distribution, provided to users of system and the third parties by the operator of the transferring system or the operator of distributive system according to this law and Regulations on connection to power supply networks and provision of services on transfer and electricity distribution on the basis of the rates approved by National regulation agency in power according to methodology of calculation, approval and application of regulated rates for additional services;

system services – the services necessary for functioning of networks of electricity transmission and distribution power supply networks;

universal service – the service rendered for providing the right of residential customers and small economic societies on the guaranteed electrical supply on the regulated conditions established by this law with observance of the set quality parameters in regulated, reasonable, transparent and easily comparable rates; the closed distributive system – the system authorized in accordance with the terms of this law, distributing the electric power in geographically limited zone – industrial, commercial or public;

electric utility system – power plants and the equipment necessary for operational and technology management, the power supply network, and also the electroinstallations of final consumers working in total as a unit;

the joint system – set of networks of electricity transmission and the distribution power supply networks connected among themselves by means of one or several intersystem connections;

the isolated system – electric utility system which is not connected with other systems or in which less than 5 percent of annual consumption are provided by means of capacities of intersystem connections with other systems;

lump-sum system – calculation method of determination of quantity of the consumed electric power proceeding from capacity of electroreceivers and hourly time of their use on types of electroreceivers or from contractual capacity and hourly usage time of this capacity; it is applied in terms and on the conditions provided by the law;

small economic society – the company numbering workers up to 50 people and the annual turnover or balance which is not exceeding in leevy equivalent of 10 million euros;

cross subsidies – the direction of the profit got during implementation of one type of activity or in connection with certain category of consumers on covering of the expenses or losses suffered by the same electrical power company when implementing other type of activity or in connection with other categories of consumers;

renewable energy resources – renewable energy resources from category not fossil, such as wind energy, solar, aero thermal, geothermal, hydroelectric energy, biomass, biogas, the gas which is formed in case of decomposition of waste (landfill gas), and gas of treatment facilities;

two-part rate – the electricity tariff consisting of two components: one – for capacity of electric current, another – for electrical energy;

rate for statement under tension – the regulated rate paid by the applicant to the operator of the transferring system or the operator of distributive system for covering of the expenses connected with connection to the power supply network and statement under tension of installation of consumption or power plant, established according to the methodology approved by National regulation agency in power;

rate for connection – the regulated rate paid by the applicant to the operator of the transferring system or the operator of distributive system for covering of the expenses connected with realization of the connecting equipment of the applicant – the potential end user and for statement under consumption installation tension, established according to the methodology approved by National regulation agency in power;

transmission of electricity – transportation of the electric power on networks of electricity transmission for the purpose of its delivery to final consumers or operators of distributive systems, not including delivery;

the declared transit – situation in which there is declared export of the electric power and in which on the specified way of the corresponding transaction there is country in the territory of which neither delivery, nor simultaneous input of the electric power will be performed;

the user of system – physical person or legal entity which performs delivery of the electric power in electric utility system or to which delivery of the electric power from electric utility system is performed;

the conservation zone of power supply networks – the zone, adjacent to power supply networks, with special conditions of use established along the route of power supply networks and around other objects of power supply networks within which according to Regulations on protection of power supply networks ban on access for people, on carrying out certain works and the mode of construction for the purpose of providing normal service conditions and exception of possibility of damage of power supply networks are imposed.

Article 3. Regulating tasks

(1) According to this law the electric power is made, transferred, distributed, is delivered and consumed in the most effective way.

(2) Regulating tasks of this law are:

a) ensuring sustainable development of national economy;

b) the ensuring safe, reliable and effective functioning of electric utility system designed to guarantee uninterrupted supply of the electric power and requirements satisfaction in the electric power of final consumers with observance of parameters of quality and the established quality indicators and also provision of system and additional services;

c) the organization and ensuring functioning of electricity market in the conditions of transparency, competition and nondiscrimination, its integration into the regional and European markets, creation of necessary conditions for ensuring the competition at electricity market;

d) providing for all physical persons and legal entities of regulated and non-discriminatory access to electricity market, to networks of electricity transmission and distribution power supply networks, and also to system services;

e) determination of functions of the National agency on regulation in power, the rights and obligations of the electrical power companies, relations between the electrical power companies, and also their relations with the National agency on regulation in power;

f) forming of the necessary legal basis for regulation and monitoring of the actual department of the operator of the transferring system and operators of distributive systems, and also ensuring their independence of the electrical power companies performing activities for production or electrical supply;

g) creation of necessary conditions for implementation of adequate investments in electric utility system, including for ensuring the sufficient electricity generating capacity, sufficient capacities of networks of electricity transmission and distribution power supply networks, intersystem connections necessary for steady and reliable functioning of electric utility system, and also for safety of supply with the electric power;

h) encouragement of use of modern intellectual and eco-friendly technologies, production of electricity from renewable energy resources and production of electrical and heat energy in the mode of highly effective cogeneration;

i) assistance to cross-border exchange of the electric power on the basis of accurately certain, transparent and non-discriminatory mechanisms of allocation of capacities and management of overloads for the purpose of effective use of intersystem capacities, promotion of diversification and competition when importing the electric power;

j) establishment of conditions of accomplishment of obligations on rendering public service in electric utility sector and ensuring protection of final consumers;

k) establishment of measures for safety of supply with the electric power of final consumers;

l) increase in efficiency and decrease in negative impact of activities in electric utility sector on the environment, and also assistance to development of this sector according to economic, nature protection and social policy of the state;

m) ensuring regional and international cooperation of the operator of the transferring system and National regulation agency in power, and also cooperation between competent authorities of the state.

Chapter II. Administrative and regulating powers

Article 4. Powers of the Government

(1) For ensuring steady functioning and development of electric utility sector the Government:

a) develops and pursues policy of the state in electric utility sector, determines the directions of its development;

b) provides creation of necessary premises for development and steady functioning of electric utility sector;

c) develops the energy strategy and submits it for approval to Parliament;

d) approves energy balance for the medium-term period (five years) developed by the central industry body of public management in the field of power;

e) orders to the electrical power companies of the obligation for rendering public service according to this law;

f) ensures energy security of the state, including for the purpose of supply with the electric power of final consumers by means of creation, at the request of National regulation agency in power according to part (8) Articles 15, the companies performing activities for transfer, distribution or electrical supply in the context of obligations on rendering public service for ensuring universal service for delivery as a last resort or on implementation of activities of the central electric power supplier;

g) resolves installation of power plants installed capacity over 20 MW and increase in capacities of the existing combined heat and power plants in case additional capacity exceeds 20 MW, according to Regulations on construction/reconstruction of power plants;

h) establishes minimum necessary quantity of reserves of fuel for power plants on the basis of fossil fuel;

i) initiates tenders in the procedure established by the law;

j) appoints the central electric power supplier;

k) appoints the operator of electricity market;

l) approves Regulations on protection of power supply networks;

m) approves Regulations on emergency situations on electricity market, the Action plan in emergency situations on electricity market and structure of the Commission on emergency situations, and also in case of means of the central industry body of public management in the field of power performs monitoring of observance of requirements of this law for safety of supply with the electric power;

n) pursues policy of the public assistance within the available financial resources;

o) approves the normative and technical documents regulating the procedure for arrangement and operation of power plants, power supply networks and electroinstallations of final consumers developed by body of the state energy supervision;

p) provides environmental protection;

q) represents the interests of electric utility sector at the international level.

(2) the Government by means of the central industry body of public management in the field of power and in cooperation with the National agency on regulation in power provides monitoring of safety of supply with the electric power which, in particular, extends on:

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