LAW OF THE REPUBLIC OF MOLDOVA

of May 27, 2016 No. 108

About natural gas

The Parliament adopts this organic law.

This law shifts:

- Article 1-42, 44-48, and also appendix I to the Directive 2009/73/EU of the European parliament and Council of July 13, 2009 about general rules of the domestic market of natural gas and cancellation of the Directive 2003/55/EU published in the Official magazine of the European Union by L 211 of August 14, 2009 in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2011/02/MC-EnC of October 6, 2011;

- Articles 2, 5, 6c, 7, 9, 10 and appendix III to Regulations (EU) 2017/1938 of October 25, 2017 the European parliament and Council about measures for guaranteeing safety of supply of gas and about cancellation of Regulations (EU) No. 994/2010, of the European Union published in the Official magazine of L 280 of October 28, 2017, in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2022/01/MC-EnC of September 30, 2022;

- articles 1-3a, 13, 15-22, 24 and appendix I to Regulations (EU) No. 715/2009 of July 13, 2009 the European parliament and Council about conditions of access to gas transmission networks and cancellation of Regulations (EU) No. 1775/2005, of the European Union published in the Official magazine of L 211 of August 14, 2009, in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2011/02/MC-EnC, and No. 2022/1032 changed by Regulations (EU) of June 29, 2022 the European parliament and Council about modification of regulations (EU) No. 2017/1938 and No. 715/2009, published in the Official magazine of the European Union by L 173 of June 30, 2022 in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2022/01/MC-EnC of September 30, 2022;

- Articles 3, 6, 10, 12, 14, 17-20 and 34 Regulations (EU) No. 2017/460 of the Commission of March 16, 2017 about approval of the Network code concerning the harmonized structures of rates for gas transportation, the European Union published in the Official magazine L 72 of March 17, 2017, in the option adapted and approved by the Solution of the Standing group of high level of Energy community No. 2018/07/PHLG-EnC of November 28, 2018;

- Regulations (EU) No. 1227/2011 of October 25, 2011 the European parliament and Council about fair behavior of participants and transparency of wholesale energy market published in the Official magazine of the European Union by L 326 of December 8, 2011 in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2018/10/MC-EnC of November 29, 2018.

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 sector of the natural gas designed to supply consumers with natural gas in the conditions of availability, availability, reliability, uninterruptedness, quality and transparency; providing open entry to the natural gas market; ensuring adequate balance between the demand and supply, proper power level of networks of natural gas, including intersystem capacity; market development of natural gas and integration into the competitive market of natural gas; determination of the measures designed to guarantee safety of supply with natural gas; establishment of obligations on rendering public service and ensuring their proper accomplishment; ensuring compliance with the rights of consumers, and also regulations on environmental protection.

(2) fall Under operation of this law:

a) production of natural gas;

b) transfer of natural gas, including cross-border flows of natural gas;

c) distribution of natural gas;

d) storage of natural gas;

d-1) trading in the sector of natural gas;

e) supply of natural gas;

f) sale of the compressed natural gas for vehicles at gas stations;

g) determination and approval of regulated prices for natural gas, and also the regulated rates connected with access to networks of natural gas, installations for storage, and other regulated rates for the services provided by the gas companies according to this law;

h) licensing of types of activity in the natural gas market;

i) organization, functioning and market monitoring of natural gas and access to this market, and also ensuring conscientiousness and transparency of the natural gas market;

j) organization, functioning and monitoring of system of natural gas;

k) safety and stability of providing final consumers with natural gas;

l) access to public or private property for the purpose of construction, operation, servicing, recovery or upgrade, including technological retrofitting, networks of natural gas;

m) regulated access for the third parties to networks of natural gas.

n) consumer protection.

(3) For the purpose of implementation of innovative test platforms in the field of regulation in power the owner of the resolution on approval uses departures from application of provisions of this law on condition of observance of procedures, stipulated by the legislation about innovative test platforms in the field of regulation in power, and also on condition of ensuring protection and safety of the population.

Article 2. Basic concepts

The basic concepts used in this law mean:

access to storage – the right of the user of system to perform downloading and selection of natural gas in amounts and during the periods specified in the service provision agreement on storage, by use of installations for storage in accordance with the terms, established by this law;

access to network – the right of the user of system, including the final consumer to take away and deliver natural gas in amounts and during the periods specified in the service provision agreement on transfer, in the service provision agreement on distribution, by use of the transferring networks of natural gas, distribution networks of natural gas in accordance with the terms, established by this law;

access to the ascending networks of natural gas – the right of the user of system to use the ascending networks of natural gas, except for parts of these networks and installations used for local production operations in production sites of natural gas;

бэкхол – the transaction with natural gas including appointment and supply distribution of natural gas in the direction opposite to the main physical flow of natural gas, performed in intersystem Items;

capacity – the maximum flow expressed in units of volume or in energy units per unit of time to which the user of system has the right in accordance with the terms of the service provision agreement on transfer of natural gas;

contractual capacity – capacity which the operator of the transferring system marked out to the user of system in accordance with the terms of the service provision agreement on transfer of natural gas;

capacity of consumption – consumption of natural gas by the final consumer when its installation / installation of consumption work at full capacity. This capacity includes all amount of natural gas consumed by the corresponding final consumer considered as single business entity if such consumption happens in the markets to interdependent wholesale prices. In case of application of this concept consumption of natural gas in the certain places of consumption which are belonging to the same final consumer and having power consumption less than 600 GW H/year is not considered if appropriate places of consumption do not exert general impact on the prices in the wholesale market of natural gas owing to the geographical arrangement in the different significant markets;

free capacity – part of technological capacity which is not allocated yet and which still is available for system at the appropriate time;

the guaranteed capacity – capacity of the transferring network of natural gas, the installation for storage guaranteed by the operator of the transferring system, the operator installation for storage as continuous;

the interrupted capacity – capacity which can be interrupted by the operator of the transferring system in accordance with the terms of the service provision agreement on transfer of natural gas;

not used capacity – the guaranteed capacity acquired by the user of system according to the service provision agreement on transfer of natural gas but not declared by the user of system till the deadline specified in the relevant agreement;

technological capacity – the maximum guaranteed capacity which can be offered by the operator of the transferring system, the operator installation for storage to users of system taking into account need of ensuring integrity of system and need of observance of requirements for operation of the transferring networks of natural gas, installation for storage;

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

the direct gas pipeline – the gas pipeline, additional in relation to the connected networks of natural gas;

overload – provision in case of which the network of natural gas cannot cope with all physical flows of natural gas resulting from the transactions requested by participants of the natural gas market because of absence or shortage of capacity of the relevant transferring networks of natural gas;

contractual overload – provision in case of which level of demand on the guaranteed capacity exceeds technological capacity;

physical overwork – provision in case of which at a given time level of demand on the actual deliveries exceeds technological capacity;

overconsumption of natural gas – daily consumption of natural gas in the cold season (from October to March) exceeding minimum for 20 percent the level of average daily consumption, celebrated during the cold climatic periods, statistically probable time in 20 years, is consequence of what emergence of imbalance in the transferring network of natural gas;

the consumer – the wholesale or final consumer or the gas company buying natural gas;

the wholesale consumer – physical person – the individual entrepreneur or the legal entity buying natural gas for resale in or out of system of natural gas;

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

the authorized consumer – the consumer of natural gas who is freely choosing the supplier from whom he buys natural gas;

the final consumer – the residential customer or not residential customer buying natural gas for own consumption;

industrial consumer – not residential customer acquiring and using natural gas in engineering procedure for production of industrial output and/or consumer goods, and also for production of electrical and heat energy;

not residential customer – the physical person or legal entity buying natural gas for other purposes than own domestic needs;

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 protected consumers are the residential customers and other categories of consumers answering to the conditions and criteria established in Regulations on emergency situations in the sector of natural gas;

the operational account of balancing – the account between operators of the adjacent transferring systems used for management of difference of the direction of flow to intersystem Item for the purpose of simplification of accounting of natural gas for the users of system concerning intersystem Item;

the delivery agreement of natural gas – the agreement on the basis of which natural gas is delivered to the consumer, but who does not turn on the derivative tool of natural gas;

the long-term agreement on supply of natural gas – the delivery agreement of natural gas signed for the term of more than 10 years;

the service provision agreement on transfer of natural gas – the agreement signed between the operator of the transferring system and the user of system for the purpose of implementation of supply of natural gas on the transferring networks of natural gas;

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;

selection level – level, on which the user of system using installation for the storage having the right to make selection of natural gas from corresponding installation for storage;

downloading level – level, on which the user of system using installation for the storage having the right to make pumping natural gas in corresponding installation for storage;

installation for storage – the equipment used for storage of natural gas, belonging to the gas company and/or operated by it, except for the equipment used for production and the equipment intended only to the operator of the transferring system for accomplishment of the functions by it;

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

development of the transferring network of natural gas – increase in capacity of the existing transferring network of natural gas or construction of the new transferring networks or sites of the transferring networks of natural gas;

distribution of natural gas – transportation of natural gas on distribution networks of natural gas for the purpose of its delivery to consumers or in points of commercial measurement of other operators of distributive systems, not including delivery;

the measuring equipment – the equipment or system for measurement of amount or amount of the delivered natural gas and in need of consumption of natural gas for the purpose of invoicing;

outsourcing of service or work – the conclusion the owner of the license with the third party of the service provision agreement or performance of work which it shall make according to this law and conditions of the license without license concession to the third party;

cross-border flow of natural gas – flow of the natural gas transferred in the course of import, export and/or transit through intersystem Items of the transferring systems of natural gas belonging to several states;

supply of natural gas – sale, including resale, natural gas to consumers;

the supplier – the gas company owner of the license for supply of natural gas delivering natural gas 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 natural gas to the final consumers who lost owing to certain circumstances of the supplier on the regulated special conditions established by this law;

the compressed natural gas for vehicles (SPGT) – the natural gas which is saved up in cylinders by compression up to the pressure over 20 MPas for its use in fuel quality for vehicles with internal combustion engines;

management of overload – portfolio management of capacities of the operator of the transferring system or the operator installation for storage for the purpose of optimum and maximum use of technological capacity and advance identification of points of peak and maximum loads;

exact information – information in which it is specified set of circumstances which came or concerning which there are reasonable grounds to believe that they will come, and also on event which took place or concerning which there are reasonable grounds to believe that it will take place and which is rather true to draw conclusion on possible influence of all circumstances or events on the price of energy products of the wholesale market;

internal information – exact information which was not promulgated directly or indirectly concerns one or several energy products of the wholesale market and which in case of its promulgation can significantly influence the price of energy products of the wholesale market. For the purposes of this concept information means the following:

a) information which is subject to disclosure according to this law, Regulations on access to the transferring networks of natural gas and management of overloads, the Code of networks of natural gas, and also according to Rules of the natural gas market;

b) information on capacity and use of installations of consumption, production installations, installations for storage or the transferring networks of natural gas, including information on their planned or unplanned unavailability;

c) information which is subject to disclosure according to provisions of regulations or agreements in the wholesale market of natural gas if this information can have significant effect on the price of energy products of the wholesale market;

d) other information relating to the natural gas market which the participant of the market can use for decision making about implementation of the transactions connected with energy product of the wholesale market or about making the trade order concerning such product;

confidential information on protection of critical infrastructure – information on critical infrastructure in the value determined by the Law on the prevention and fight against terrorism No. 120/2017 which in case of disclosure can be used for the purpose of planning and implementation of the actions leading to removal it out of operation or to its destruction;

gas installation of the final consumer – installation for connection and consumption installation;

production installation – complex of the equipment and the pipelines of the producer necessary for natural gas production as natural mineral or for production of natural gas in the artificial way with reduction of parameters of natural gas to compliance with the normative requirements provided for its delivery to network of natural gas;

installation for connection – gas installation by means of which the network of natural gas contacts production installation, installation for storage or consumption installation, including the SPGT installation;

installation for underground storage – installation for storage which belongs and/or is operated by the gas company is used for storage of natural gas, including balancing inventories, and is connected to the transferring or distribution network, except for land spherical reservoirs or the storage which is built in in the pipeline;

consumption installation – complex of gas installations of the final consumer, held for use natural gas, including the SPGT installation;

the derivative tool of natural gas – the financial instrument designed to insure participants of the natural gas market against possible price fluctuations on natural gas in the market in case this tool belongs to the sector of natural gas;

integrity of system – condition of the transferring network of natural gas, distribution network of natural gas, installation for storage, including the related installations in case of which pressure and quality of natural gas do not go beyond the set minimum and maximum limits, so that transfer, distribution or storage of natural gas were technically guaranteed;

intersystem connection – the gas pipeline crossing border between the Republic of Moldova and other country for the single purpose – connection of the national transferring systems of natural gas of the Republic of Moldova and the respective country;

the gas 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, storage, trading or supply of natural gas and performing commercial, technical functions and/or service functions in connection with the specified types of activity, but without participation of final consumers;

the integrated gas company – horizontally or vertically integrated gas company;

horizontally integrated gas company – the gas company performing at least one of types of activity on production, transfer, distribution, storage, trading or supply of natural gas, and also another, not connected with the sector of natural gas, activities;

vertically integrated gas company – the gas company or group of the gas companies as a part of which or as a part of which the same person or the same persons has the right to carry out directly or indirectly control as it is determined by this law and which or which perform at least one of types of activity on transfer, on distribution or on storage of natural gas and at least one of types of activity on production, on trading or on supply of natural gas;

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 participant, the founder of this company and/or which under the agreement with other participants, 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 participants, founders; and/or economic societies which, without depending from each other, are joint under single management or are controlled the bodies consisting in the majority the of the same persons; and/or other types of affiliated economic societies;

the place of consumption – location of gas installations of the final consumer where by means of one installation of consumption the gas delivered through one or several installations for connection is spent;

management of energy efficiency and/or demand – integrated or complete approach for the purpose of influence on amount and capacity, correctness of planning of consumption of natural gas for decrease in consumption of natural gas and amounts of natural gas from peak sources by provision of priority to investments into actions for energy efficiency or into other measures, such as agreements on the interrupted supply of natural gas, 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 consumption of natural gas, on safety of supply with natural gas, and also on the costs for service in distribution of natural gas connected with these measures;

method of establishment of the basic price – the calculation method applied to that part of the income received from provision of services on transfer of natural gas which is subject to compensation for the account of regulated rates for service in transfer on the basis of capacity, for the purpose of determination of basic prices;

method of establishment of the basic price depending on the weighted average distance on the basis of capacity – the calculation method established as basic method according to the Code of networks of natural gas;

the request – the prior notice the user of system of the operator of the transferring system or the operator installation for storage about the actual amount of gas which the user of system intends to enter into system or to select from it;

task on creation of inventories of natural gas – the task, obligatory for accomplishment, connected with the inventory level of natural gas in relation to cumulative capacity of installations for underground storage, determined for member countries of Energy community or member states of the European Union in which there are installations for underground storage;

the obligation on rendering public service – the short-term obligation assigned to the gas company in general economic interests which can concern safety, including safety of supply with natural gas, 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 installation for storage – the gas company having the license for storage of natural gas performing activities for storage of natural gas and operating installation for storage;

the operator of the SPGT installation – the legal entity in accordance with the established procedure registered in the Republic of Moldova as the company, being the owner of the license for sale of the compressed natural gas for vehicles at gas stations, performing the activities connected as with storage of natural gas in reservoirs by its compression up to the pressure over 20 MPas for the purpose of its further sale for use in fuel quality for vehicles with internal combustion engines;

the operator of distributive system – the gas company – the owner of the license for distribution of natural gas which owns distribution networks of natural gas performs functions on distribution of natural gas and is responsible for operation, servicing, upgrade, including technological retrofitting, and development of distribution networks of natural gas in certain zones, and also for providing long-term capability of distribution networks of natural gas to meet reasonable demand for provision of service in distribution of natural gas;

the operator of the transferring system – the gas company owner of the license for transfer of natural gas which owns the transferring networks of natural gas performs functions on transfer of natural gas and is responsible for operation, servicing, upgrade, including technological retrofitting, and development of the transferring networks of natural gas and intersystem connections, and also for providing long-term capability of the transferring networks of natural gas to meet reasonable demand for provision of service in transfer of natural gas;

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

quality parameters – set of the characteristics of natural gas established in the quality standards which affirm national authority on standardization and are specified afterwards as obligatory in the regulating regulations approved by National regulation agency in power;

the member of Energy community – the agreement party about Energy community;

the participant of the natural gas market – physical person or legal entity, including the system operator, performing transactions with natural gas, including by placement of the trade order in the wholesale market of natural gas;

the natural gas market – the organized sphere of purchase and sale of natural gas by participants of the market and provision of system services for the purpose of uninterrupted and reliable providing consumers with natural gas within system of natural gas;

the primary market – the market of the capacity sold directly by the operator of the transferring system or the operator installation for storage;

the secondary market – the market of the capacity sold differently than in the primary market;

long-term planning – planning on long-term basis of necessary investments into production capacities and capacities on storage, in the transferring and distribution networks of natural gas for the purpose of satisfaction of system demand for natural gas, diversifications of sources and guaranteeing uninterrupted supply of natural gas to consumers;

the basic price – the price of product of the guaranteed capacity with effective period one year which is applied on entrance and output Items and is used for establishment of regulated rates for services in transfer of natural gas on the basis of capacity;

the producer – the gas company owner of the license for the production of natural gas performing activities for gas production as natural mineral in the territory of the Republic of Moldova or making gas in the artificial way;

energy products of the wholesale market – the following agreement types and derivative tools, irrespective of the place or method of their sale:

a) delivery agreements of natural gas in case of implementation of delivery to the Republic of Moldova or to member countries of Energy community, member states of the European Union;

b) service provision agreements on transfer of natural gas in the Republic of Moldova or in member countries of Energy community, member states of the European Union;

c) delivery agreements and provision of service in distribution of natural gas to final consumers who have capacity of consumption over 600 GW H/year;

differentiating Item – the place in which gas installations of the final consumer are differentiated on the basis of the property right from networks of natural gas, installations of the gas company, or the place in which are differentiated on the basis of the property right of network of natural gas, installation of the gas companies;

connection point – physical point of network of natural gas to which are connected by means of installation for connection production installation, installation for storage or consumption installation, including the SPGT installation;

connection – accomplishment of installation by the system operator for connection of the applicant – the potential final consumer, except the operator of the SPGT installation, and/or connection and start-up under pressure of gas installations of the final consumer, the SPGT installation, production installation or installation for storage on condition of creation of the acceptance act of these installations;

the repeated request – the subsequent notification on the corrected request;

distribution network of natural gas – the system consisting of gas pipelines with the working pressure of gas to MPa 1,2 inclusive with the gas control Items and other installations located behind point of connection to the transferring network of natural gas and, on circumstances, to installations for storage, to production installations which serves for distribution of natural gas;

network of natural gas – the transferring and distribution network of natural gas;

the ascending network of natural gas – any network of natural gas operated and/or constructed within the project of production of natural gas or used for transfer of natural gas from one or several production sites of this kind to the overworking device or to the terminal or port terminal;

the transferring network of natural gas – the system consisting of gas pipelines with the working pressure of gas over MPa 1,2 with compressor, gas distribution, gas-measuring stations and other installations which serves for transfer of natural gas, except the ascending networks of natural gas;

safety – safety of delivery and delivery of natural gas, and also technical safety;

additional services – the services accompanying transfer or distribution of natural gas, provided to users of system and the third parties by the system operator according to this law, Regulations on connection to networks of natural gas and provision of services on transfer and distribution of natural gas and the Code of networks of natural gas 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 ensuring access to the transferring and distribution networks of natural gas, installations for storage, and also for their operation, including services of balancing, mixing and input of natural gas, but not concerning the installations intended to the operator of the transferring system for accomplishment of the functions by it;?

services in transfer of natural gas like бэкхол – complex of the actions and transactions which are carried out by the operator of system of transfer for or in connection with:

a) allocation of the transferring capacity on type бэкхол;

b) provision of services on transfer of natural gas like бэкхол on the basis of the contractual transferring capacity in the interrupted mode through intersystem Item;

the interrupted services – the services provided by the operator of the transferring system, the operator installation for storage in connection with the interrupted capacity;

long-term services – the services offered by the operator of the transferring system, the operator installation for storage for the term of one year and more;

short-term services – the services offered by the operator of the transferring system, the operator installation for storage for the term of less than one year;

the closed distributive system – the system authorized in accordance with the terms, established by this law, distributing natural gas in geographically limited zone – industrial, commercial or public;

system of natural gas – production installations, installation for storage, the ascending networks of natural gas transferring and the distribution networks of natural gas belonging to the gas companies and operated by them, adjacent installations necessary for ensuring access to the transferring and distribution networks of natural gas, and also to installation for storage;

the joint system – set of the transferring and distribution networks of natural gas connected among themselves by means of one or several intersystem connections;

lump-sum system – calculation method of scoping of the consumed gas proceeding from nominal consumption of natural gas gas devices and hourly time of their use or from the heated area; it is applied in terms and on the conditions provided by the law;

emergency situation in the sector of natural gas – unexpected situation which at the national level can lead to imbalance between demand for natural gas and its offer, caused:

a) decrease in amount of the imported natural gas more than for 20 percent of demand for it;

b) registration within seven days in a row of extremely low temperatures on all or in the considerable territory of the country during the cold climatic periods, statistically probable time in 20 years that leads to overconsumption of natural gas;

small enterprises – the companies in the sense determined in the Law on the small and medium companies No. 179/2016;

gas distribution station – complex of installations for regulation of pressure, measurement of expense, filtering and odorization through which natural gas from the transferring networks of natural gas is delivered in network of natural gas of adjacent system operators, gas installations of final consumers, including in installations of operators of the SPGT installations;

gas control Item – complex of installations for the regulation of pressure, measurement of pressure, temperature, expense, filtering connected by means of branch to distribution network of natural gas through which natural gas from networks of high or average pressure is transferred to distribution networks of natural gas with lower level of pressure and/or to consumption installations;

balancing inventory – amount of not liquefied natural gas, which:

a) it is bought, controlled and stored in installations for underground storage by operators of the transferring systems or the subject appointed only for accomplishment of functions of operators of the transferring systems and safety of supply with natural gas; and

b) it is used only in case it is necessary for maintenance of safe and reliable system operation of natural gas;

the reserve stock – amount of the not liquefied natural gas which is stored in installations for storage which is bought, controlled and stored by the subject appointed for creation and maintenance of reserve stocks according to Article 1081, and can be used in accordance with the terms, provided by part (8) the specified Article;

storage of natural gas – complex of the works and actions which are carried out by the gas company for storage or in connection with stock holding in storages and for downloading to storages, storages in them and selection from them of natural gas in certain quantities;

storage in the pipeline – storage of natural gas by its compression in the transferring and distribution networks of natural gas, excepting the installations intended to the operator of the transferring system for accomplishment of the functions by it;

cross subsidies – the direction of income gained during implementation of one type of activity or in connection with certain category of consumers users of system on covering of the expenses or losses suffered by the same gas company when implementing other type of activity or in connection with other categories of consumers users of system;

rate for connection – the regulated rate established according to the methodology approved by National regulation agency in the power engineering specialist who is paid to the system operator by the applicant – the potential final consumer, except for of the operator of the SPGT installation for the purpose of covering of the expenses connected with designing, accomplishment of installation for connection, connection to network of natural gas and start-up under pressure of gas installations of the final consumer, except for the SPGT installations;

rate for start-up under pressure – the regulated rate established according to the methodology approved by National regulation agency in the power engineering specialist who is paid to the system operator by the applicant for covering of expenses on connection to network of natural gas and start-up under pressure of gas installations of the final consumer if its installation for connection was not executed by the system operator, the SPGT installations, production installation or installation for storage;

regulated rate for service in transfer of natural gas – the rate approved by National regulation agency in power which users of system shall pay the operator of the transferring system for the services in transfer of natural gas provided to them;

attempt of market manipulation – one of the following actions:

1) transaction or making the trade order of rather energy products of the wholesale market with intention:

a) make obviously false declarations or mislead concerning the offer, demand or the price of energy products of the wholesale market;

b) in the artificial way to establish the price of one or several energy products of the wholesale market if only the person who made the transaction or gave the trade assignment was not convinced that the reasons which induced to arrive thus, are absolutely legal and that such transaction or such order correspond to the market practice accepted in the natural gas market;

c) by means of the dummy tool or by any other form of deception or confidence abuse to transfer or try to transfer the untrue or misleading information on the offer, demand or the price of energy products of the wholesale market;

2) distribution of information through mass media, including the Internet, or any other method with intention to transfer the untrue or misleading messages concerning the offer, demand or the price of energy products of the wholesale market;

the trader – being the owner of the license for trading activities in the sector of natural gas the gas company performing activities in the procedure provided by the law;

trading of natural gas – purchase and sale of natural gas in the wholesale market of natural gas, including in connection with import/natural gas export;

transfer of natural gas – transportation of natural gas on the transferring networks of natural gas for the purpose of its delivery to final consumers, not including delivery;

the user of system – physical person or legal entity which performs delivery in system of natural gas or to which delivery from system of natural gas is performed;

the conservation zone of networks of natural gas – the zone, adjacent to networks of natural gas, with special conditions of use established along the pipeline route and around other objects of network of natural gas within which according to Regulations on conservation zones of networks of natural gas 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 networks of natural gas are imposed.

Article 3. Regulating tasks

(1) According to this law natural gas is made, transferred, distributed, is stored, 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 system of natural gas designed to guarantee uninterrupted supply of natural gas and requirements satisfaction in natural gas 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 the national natural gas market in the conditions of transparency, competition and nondiscrimination, its integration into the regional and European market, and also creation of necessary conditions for ensuring the competition at the natural gas market;

d) providing to all physical persons and legal entities of regulated and non-discriminatory access to the transferring and distribution networks of natural gas, installations for storage, and also open and non-discriminatory entry to the natural gas market;

d-1) ensuring conscientiousness and transparency of the natural gas market, including by determination of obligations of participants of the wholesale market of natural gas on registration and publication of internal information with observance of the conditions provided by this law, way of introduction of prohibitions on market manipulation and on transactions, based on internal information and also by determination of the special powers of the National agency on regulation in power connected with investigation of potential abuses in the wholesale market of natural gas and possible transactions based on internal information;

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

e-1) promotion in the sector of natural gas of the regulation based on stimulation;

f) forming of the necessary legal basis for regulation and monitoring of the actual department of the operator of the transferring system, the operator of distributive system and the operator of installations for storage, and also ensuring their independence of the gas companies performing activities for production or supply of natural gas;

g) creation of necessary conditions for implementation of adequate investments in system of natural gas, including for ensuring sufficient capacities on production of natural gas, storage of natural gas, sufficient capacities of the transferring and distribution networks of natural gas, intersystem connections necessary for steady and smooth functioning of system of natural gas, and also for safety of supply with natural gas;

h) assistance to cross-border exchange of natural gas 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, and also promotion of diversification and competition in case of natural gas import;

i) determination of conditions of accomplishment of obligations on rendering public service in the sector of natural gas and ensuring protection of final consumers;

j) establishment of measures for safety of supply with natural gas of final consumers;

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

l) ensuring regional and international cooperation of operators of the transferring systems and National regulation agency in power, and also cooperation between competent authorities of the state;

m) providing in case of investigation of potential abuses in the wholesale market of natural gas of the Republic of Moldova and possible making of the transactions which are based on internal information capable to make cross-border impact, cooperation of the National agency on regulation in power with other regulating authorities in case of approval of the Regulating committee of Energy community.

Chapter II. Administrative and regulating powers

Article 4. Powers of the Government

(1) for the purpose of ensuring steady functioning and development of the sector of natural gas the Government:

a) determines the priority directions and state policy in the sector of natural gas, including taking into account need of decrease in harmful effects of the sector of natural gas on the environment;

b) provides taking into account need of long-term planning creation of necessary premises for stable development and functioning of the sector of natural gas;

c) approves the energy strategy and program documents, the stipulated in Article 7-2 Laws on power No. 174/2017;

d) approves the Regulations on conservation zones of networks of natural gas developed by the central industry body of public management in the field of industrial safety and also the regulations developed by the central industry body of public management in the field of power;

e) approves Regulations on emergency situations in the sector of natural gas, the Action plan in emergency situations in the sector of natural gas, structure and special powers of the Commission on emergency situations of the Republic of Moldova, and also performs by means of the central industry body of public management in the field of power monitoring of observance of provisions of this law on safety of supply with natural gas;

f) accepts resolutions on entering into Parliament of the offer on the announcement of emergency state according to the Law on the modes of emergency, obsidional and warlike situation No. 212/2004;

g) according to the appeal of the National agency on regulation in power according to part (8) Article 15 creates the companies performing activities for transfer, storage, distribution or supply of natural gas in the context of the obligations established by Articles 89 and 90 on rendering public service;

h) assigns to the gas companies of the obligation for rendering public service according to this law, including stipulated in Clause 108-2 obligations on rendering public service;

i) provides realization of policy of development and use of gas fields of the Republic of Moldova and grants according to industry regulations right to use by subsoil plots for natural gas production;

j) makes the decision on financing from means of the government budget of construction of the transferring networks of natural gas, intersystem connections;

k) accepts resolutions on construction of installations for storage of natural gas in amount of more 0,1 of one million cubic meters, and also on arrangement for these purposes of natural reservoirs;

l) provides protection of socially vulnerable consumers by means of the program of the public assistance in limits of the financial resources which are available in the government budget or other methods, except the state intervention in price fixation on supply of natural gas;

m) within available means of the government budget takes measures for temporary compensation of increase in prices to residential customers according to Article 84-1;

n) advances interests of the sector of natural gas at the international level and signs the international agreements, including for the purpose of increase in energy security of the state and ensuring supply with natural gas.

(2) the Government ensures energy security of the state, safety of supply with natural gas by means of approval of program documents, the regulations specified in Item е) parts (1), and also by realization of other necessary measures provided by this law.

(2-1) Government take necessary measures for ensuring use till November 1 of each calendar year of capacities on storage of natural gas in installations for storage of other member countries of Energy community, member states of the European Union which correspond to the level at least 15 percent of annual average consumption of natural gas by the final consumers of the Republic of Moldova connected to networks of the natural gas of licensed system operators determined for the period, consisting of the last five calendar years. The inventories of natural gas which are subject to creation for this purpose include the inventories provided by Articles 108-1-108-3.

(3) the Government provides interaction at the different levels for the purpose of approval administrative the practician in the sector of natural gas and promotion of regional and international cooperation in the sector of natural gas.

(4) the Government performs also other functions established by this law and the Law on power No. 174/2017.

Article 5. Powers of bodies of local public authority

(1) Organa of local public authority permissions for construction of objects of system of natural gas according to the Law on permission of accomplishment of construction works No. 163 of July 9, 2010 issue, on demand.

(2) In case of issue of permissions for construction of apartment houses, buildings and other constructions bodies of local public authority shall observe the requirements to conservation zones of networks of natural gas established by Regulations on conservation zones of networks of natural gas.

(3) Organa of local public authority are responsible for project development of construction of distribution networks of natural gas of the local value performed based on the permissions to connection issued by operators of distributive systems and according to town-planning plans and plans of arrangement of the territory and also represent the corresponding projects to operators of distributive systems.

(4) Earth, the states which are in public property and administrative and territorial units, are transferred on a grant basis to use to operators of the transferring systems, operators of distributive systems for production of necessary works on construction and/or operation of networks of natural gas.

Article 6. Regulating authority

(1) the Body given authority on regulation and monitoring of activities in the sector of natural gas is the National regulation agency in power (further – the Agency).

(2) the Agency will be organized, controlled and financed according to the Law on power.

(3) the Agency performs the activities in the sector of natural gas according to this law, the Law on power and the Regulations on the organization and functioning of the National agency on regulation in power approved by Parliament.

(The Agency develops 4), represents to Parliament and places on the official web page the activities report for previous year according to the procedure and the terms established by the Law on power.

Article 7. Functions of the Agency

(1) in the field of regulation of the activities in the sector of natural gas which are subject to regulation by licensing and permission, the Agency:

a) issues, prolongs, renews, stops, resumes action or withdraws licenses, issues them copies and duplicates according to this law and the Law on regulation of business activity by permission No. 160/2011;

b) appoints the owner of the license who will perform the licensed activities instead of the owner of the license for transfer of natural gas, distribution of natural gas, storage of natural gas or supply of natural gas in the context of the obligations on rendering public service established by Articles 89 and 90, whose license is suspended, withdrawn or overdue;

c) performs monitoring of observance by owners of licenses of the obligations established by this law concerning quality of the provided services and efficiency of the performed activities, and also other established conditions of implementation of the licensed activities;

d) will certify the operator of the transferring system and performs monitoring of permanent observance by it of requirements for department and independence, and also provided by this law of other requirements;

e) performs monitoring, in case of appointment of the independent system operator, the relations and exchange of information between the owner of the transferring networks of natural gas and the independent system operator, and also observance of the obligations established by this law by them;

e-1) requests information and reports from the independent system operator and the owner of networks of natural gas and performs, including sudden, in the location of the owner of the transferring network, as well as in the location of the independent system operator;

f) approves agreements, agreements between the candidate for operators / the independent system operator and owners/owners of the transferring networks of natural gas, including lease agreements, or the resolutions establishing contents of the relevant agreements in provided by part (6) Articles 26 cases;

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