On Electric Power Industry

Law of the Republic of Kazakhstan dated 9 June 2004 No. 588

Unofficial translation

      This Law regulates social relations arising in the process of production, transfer and consumption of electrical and heat energy.
      Footnote. Preamble amended by Law of the Republic of Kazakhstan dated 11 April 2006 No. 136 (enforced from the date of its official publication).

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

      This Law shall use the following basic concepts:
      1) emergency reservation – the minimum required electrical capacity, of which delivery to the object of uninterrupted electric supply shall maintain functioning of devices significant for it and prevent operating irregularity of vital infrastructures, as well as catastrophic environmental, social or economic consequences or death of people;
      2) disruption – unacceptable divergences of operating conditions of an electric installation or its elements, occasioning their removal from service or damage during operation;
      2-1) availability schedule – annually issued document confirming availability of energy-producing and regional transmission organizations for service in autumn and winter conditions;
      2-2) generating installation – device generating electrical energy;
      Note by RCLI!
      Exclusion of sub-paragraph 3 provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      3) calculated tariff – the maximum electrical energy selling tariff (price) for energy-producing organizations, determined in a technical and economic assessment of the investment program and exceeding the marginal tariff approved for the relevant group;
      Note by RCLI!
      Exclusion of sub-paragraph 4 provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      4) individual tariff – maximum electrical energy selling tariff (price) confirmed for the energy-producing organization implementing the f investment program, exceeding the marginal tariff approved for the relevant group;
      5) system emergency – disturbance of the operating regimes of electricity generation facilities, leading to instability of the single electric power system of the Republic of Kazakhstan and to its separation into parts;
      6) system services – the services rendered by the system operator for the wholesale electrical energy market entities by transfer of electrical energy, technical dispatch control, regulation and reservation of capacity, and organization of production-consumption balancing of electrical energy;
      7) system operator – the national company, carrying out centralized operational dispatch management, provision of parallel operations with energy systems of other states, maintenance of balance in the energy systems, rendering of system services and acquisition of ancillary services from wholesale electrical energy market entities, as well as transfer of electrical energy through the national electric network, providing technical servicing of that network and keeping it in operational availability;
      8) heating network conservation zone – land plots designed for preservation of heating systems, arrangement of normal operating conditions and prevention of damage to them and accidents amongst the population within the conservation zone of these systems;
      9) heat energy transfer – the service of transporting heat energy through heating systems, rendered by regional transmission organizations in accordance with concluded contracts;
      10) retail heat energy market – system of relations between participants in the production, transfer and consumption of heat energy, functioning on the basis of contracts;
      11) investment program – program directed at creating active assets and expanding, updating, reconstructing and re-equipping existing active assets;
      Note by RCLI!
      Exclusion of sub-paragraph 12) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      12) investment commitment – obligation providing for creation of new active assets, and expanding, updating, maintaining, reconstructing and re-equipping existing active assets;
      Note by RCLI!
      Exclusion of sub-paragraph 13) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      13) investment contract – contract for fulfilment of investment program between the energy-producing organization, authorized body and state body, carrying out management of natural monopolies and of regulated markets;
      Note by RCLI!
      Exclusion of sub-paragraph 14) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      14) agreement – contract for fulfilment of investment commitments between the authorized body and energy-producing organization selling electrical energy at prices not exceeding the marginal tariff;
      15) commercial metering instrument – technical device intended for metering of electrical capacity, electrical or heat energy, allowed for use as prescribed by Kazakh legislation;
      15-1) authorized body in the field of municipal economics – the central executive body providing management and cross-sector coordination in the field of electrical supply ( electricity network objects of 0.4 kV) and heat supply system, except for cogeneration plants and boiler houses with established capacity of 100 Gcal/h and more, within inhabited localities;
      16) single electric power system of the Republic of Kazakhstan – the set of electric power plants, power transmission lines and electric substations ensuring reliable and qualitative power delivery to consumers in Kazakhstan;
      17) electrical capacity reserve of single electric power system of the Republic of Kazakhstan – the electrical capacity of the energy-producing organizations’ power units, having the required structure, value and degree of completion for dispatching control, according to contractual requirements;
      18) ancillary services – services acquired by the system operator from wholesale electrical energy market entities for securing the availability of required volumes and structures of operating electrical capacity reserves, and regulation of active and reactive powers concerning activation of energy system from release condition;
      18-1) state technical inspector – authorized official carrying out state control of compliance with requirements of Kazakh legislation concerning the electric power industry;
      19) operating days – regular days within which the system operator shall carry out operations involving centralized dispatch management of execution of electrical energy buy-and-sell agreements concluded by wholesale electrical energy market entities;
      20) centralized operational dispatch management – the process of uninterrupted management of technically coordinated work of organizations producing, transmitting and supplying energy and of consumers of electrical energy, ensuring a specified level of reliability of the single electric power system of the Republic of Kazakhstan and compliance with the standard quality of electrical energy;
      Note by RCLI!
      Supplementation of Article 1 provided for by sub-paragraph 20-1) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      21) interregional and (or) interstate power transmission lines – power transmission lines with a voltage of 220 kV and more transferring electrical energy between regions and (or) states;
      22) regional electric grid company – the regional transmission organization, operating the regional electrical network;
      22-1) level of exploitable fuel storage – the minimum exploitable fuel storage of the energy-producing organizations in a daily computation;
      23) balancing electrical energy – electrical energy used for a balance correction in realization of hourly daily schedule of electrical energy production-consumption, approved by the system operator;
      24) technical dispatching control – service rendered by system operator when carrying out centralized operational dispatch management of regimes of production and consumption of electrical energy in the single electric power system of the Republic of Kazakhstan;
      25) consumer – individual or legal entity consuming electrical and (or) heat energy on the basis of a contract;
      26) authorized body – state body carrying out management in the electrical power industry:
      27) national electric network – the set of substations, distribution substations, interregional and (or) interstate power transmission lines and power transmission lines supplying electrical energy from electrical stations, with a voltage of 220 kV and more, not subject to privatization and transferred to a national company according to the method and terms determined by the Government of the Republic of Kazakhstan;
      Note by RCLI!
      Exclusion of sub-paragraph 28) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      28) marginal tariff – approved maximum value of electrical energy selling tariff (price) for a group of energy-producing organizations;
      29) commercial metering of electric and heat energy – the metering of electric and heat energy, required for payments between parties under buy-and-sell and electrical and heat energy transfer networks;
      29-1) electrical networks – the set of substations, distribution substations and power transmission lines connecting them, intended for transfer and distribution of electrical energy;
      30) electrical networks conservation zone – land, water and air areas designated for securing the preservation of electric networks, creating normal operating conditions and preventing damage to them and accidents among the population living in the conservation zone of these networks;
      31) regulation of electric capacity – service to compensate for divergences between factual electrical load of the wholesale electrical energy market entity and predicated electric load, subject to compliance with net balance of exchangeable electrical energy with or without planning in a daily schedule;
      31-1) electrical capacity availability maintenance service – service rendered by energy-producing organizations for the system operator to maintain availability of electrical capacity of generating installations, certified in established manner for supporting load;
      Note by RCLI!
      Exclusion of Article 1 provided for by sub-paragraphs 31-2), 31-3) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      31-4) service to secure electrical capacity availability for supporting load – service rendered by the system operator to secure electrical capacity availability of generating installations, certified in established manner in the single electrical energy system of the Republic of Kazakhstan for supporting load;
      Note by RCLI!
      Supplementation of Article 1 provided for by sub-paragraph 31-5) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2015).
      Note by RCLI!
      Supplementation of Article 1 provided for by sub-paragraphs 31-6), 31-7) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      32) electrical power industry – the sphere of industry, transfer, supply and consumption of electric and heat energy;
      Note by RCLI!
      Sub-paragraph 33) as amended by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      33) wholesale electrical energy market entities – energy-producing, regional transmission, energy-supplying organizations, consumers of electrical energy, the system operator, the operator of the centralized trade of electrical energy, and the accounting and finance centre for support of renewable energy sources;
      Note by RCLI!
      Supplementation of Article 1 provided for by sub-paragraph 33-1) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      34) guaranteeing supplier of electrical energy – energy-supplying organization providing power to consumers in cases of termination of power delivery to consumers by all other energy-supplying organizations through no fault of the consumer;
      35) transfer of electrical energy – service rendered by regional transmission organizations in accordance with concluded electrical energy transfer contracts;
      35-1) automatic system of commercial metering of electrical energy – set of measuring instruments and hardware and software packages for the measuring, collection, processing, storage and transfer of electrical energy accounting data;
      36) daily schedule of electrical energy production-consumption – document regulating the hourly value of production and consumption of electrical energy for every calendar day in accordance with electrical energy buy–and-sell agreements concluded by wholesale market participants on the markets for decentralized buy and sell of electrical energy and centralized trade of electrical energy;
      37) electrical energy production-consumption balancing management organization – the service rendered by the system operator to organize the function of the balancing electrical energy market;
      Note by RCLI!
      Supplementation of Article 1 provided for by sub-paragraph 37-1) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      38) retail electrical energy market – system of relations functioning on the basis of contracts (buy and sell, transfer and consumption of electrical energy, and associated services rendered) between the retail electrical energy market entities outside the wholesale market;
      39) retail electrical energy market entities – organizations producing, supplying and transmitting energy, and consumers of electrical energy;
      Note by RCLI!
      Sub-paragraph 40) provided for in wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      40) wholesale electrical energy market – system of relations connected with buying and selling of electrical energy, functioning on the basis of contracts between wholesale electrical energy market entities;
      41) centralized electrical energy trade – buy-and-sell transactions in electrical energy, carried out by wholesale electrical energy market entities in an electronic trading system on a voluntary basis, with the exception of cases determined by this Law;
      Note by RCLI!
      Exclusion of sub-paragraph 42) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      42) centralized electrical energy trade market operator – organization carrying out centralized bids for electrical energy, including spot bids for electrical energy;
      43) spot bids for electrical energy (hereinafter spot bids) – organized trade in hourly volumes of electrical energy on short-term basis in regimes: for a day before and during operating days;
      44) balancing electrical energy market – system of relationships between system operator and energy-producing and energy-supplying organizations, and wholesale consumers, carrying out activities on the wholesale electrical energy market, brought about by physical and subsequent financial settlement by the system operator of unbalances arising in real-time mode between contractual and factual production volumes and/or consumption of electrical energy in the single electric power system of the Republic of Kazakhstan during operating days;
      45) simulated electrical energy market balancing mode (hereinafter simulated mode) – the functioning of the balancing electrical energy market without financial settlement for the electrical energy unbalances;
      46) electrical energy unbalances – difference between factual value of electrical energy production-consumption and value approved by system operator in hourly daily schedule of electrical energy production-consumption;
      47) energy assessment – assessment, conducted in the field of electric power industry in relation to facilities in operation, and projects involving reconstructed, modernized and newly constructed objects, during investigation of disturbances and emergencies on power-generating equipment in electric and heat networks, and in the cases of workplace injuries on there, to establish compliance with Kazakh normative legal documents;
      48) regional transmission organization – organization transferring electrical and heat energy on the basis of contracts;
      49) energy-supplying organization – organization selling purchased electrical and/or heat energy to consumers;
      50) energy-producing organization – organization producing electrical and/or heat energy for internal requirements and (or) sales;
      Note by RCLI!
      Exclusion of sub-paragraph 51) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      51) group of energy-producing organizations – energy-producing organizations established into groups according to criteria: type of energy-producing organizations, installed capacity, type of fuel used, remoteness from fuel location.
      Footnote. Article 1 is in the wording of Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009), as amended by laws of the Republic of Kazakhstan dated 01.03.2011 No. 414-IV (enforced from date of its first official publication); 22.07.2011 No. 479-IV (enforced upon expiry of ten calendar days after first official publication); 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication); and 04.07.2013 No. 128-V (enforced upon expiry of ten calendar days after first official publication).

Article 2. Legislation of the Republic of Kazakhstan concerning the electric power industry

      1. The legislation of the Republic of Kazakhstan concerning the electric power industry shall be based on the Constitution of the Republic of Kazakhstan and consist of this Law and other normative legal acts of the Republic of Kazakhstan.
      2. If an international agreement, ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, the rules of the international agreement shall be applied.

Chapter 2. State regulation of the electric power industry

Article 3. Goals and objectives of State regulation of the electric power industry

      1. State regulation of the electric power industry shall be carried out for the purpose of:
      1) maximum satisfaction of energy consumer demands and protection of rights of electrical and heat energy market participants by creating conditions of competition on the market, guaranteeing consumers a right of choice of electric and heat energy suppliers;
      2) securing the safe, reliable and stable function of the electrical energy complex of the Republic of Kazakhstan;
      3) unifying management of the electrical energy complex of the Republic of Kazakhstan as a particularly important life support system of the State’s economic and social complexes.
      2. The objectives of State regulation of the electric power industry are:
      1) effective and safe function and development of the electrical energy complex through unity of management and development of business competition;
      2) right of choice of electric and/or heat energy supplier by consumers;
      3) regulation of activities in the sphere of natural monopoly, and creation of conditions for protection of domestic energy producers;
      4) establishment and development of a regulated electric and heat energy market;
      5) rational and economic use of electrical and heat energy;
      6) use and development of renewable and non-conventional energy sources;
      7) attraction of investments in development and re-equipping of the electrical energy complex;
      8) creation of conditions for fulfilling a set of actions to protect the environment and reliability and safety of construction in the operation of power transmission lines and electric and energy installations;
      9) creation of conditions for organizing an energy delivery in remote areas of the state;
      10) establishment of national operating standards for the single electric power system of the Republic of Kazakhstan and for quality of electrical energy.
      3. State regulation of electrical energy includes:
      1) licensing;
      2) State regulation of tariffs (prices and rates);
      3) de-monopolization and privatization of electricity generation facilities;
      4) state supervision of reliability, safety and economy of production, transfer, control and consumption of electrical energy;
      5) technical regulation of the electric power industry.
      Footnote. Article 3 as amended by laws of the Republic of Kazakhstan dated 11.04.2006 No. 136 (enforced from the date of first official publication); 29.12.2006 No. 209 (for method of instruction see Article 2); and 10.07.2012 No. 31-V (enforced upon expiry of ten calendar days after first official publication).

Article 4. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:
      1) develop the basic directions of State electrical power industry policy;
      2) Excluded by Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (enforced upon expiry of ten calendar days after first official publication);
      3) confirm the provision concerning the State Energy Inspectorate of the Republic of Kazakhstan;
      Note by RCLI!
      Sub-paragraph 4) provided for in wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2015).
      4) confirm the method for determining the calculated tariff and confirming marginal and individual tariffs;
      Note by RCLI!
      Exclusion of sub-paragraph 5) provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      5) confirm the standard investment contract and standard agreement;
      5-1) confirm the standard electrical supply contract;
      5-2) confirm the standard contract for construction of generating installations for first commissioning;
      5-3) confirm the standard contract for purchase of service to maintain electrical capacity of newly commissioned generating installations;
      Note by RCLI!
      Sub-paragraph 6) provided for in wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      6) confirm marginal tariffs;
      Note by RCLI!
      Supplementation of Article 4 provided for by sub-paragraph 6-1) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      7) confirm the rules concerning organization and function of the wholesale electrical energy market;
      8) confirm the rules for technical operation of electric stations and networks;
      8-1) confirm the rules for tendering for construction of generating installations recommissioned;
      9) confirm the rules of function of the balancing electrical energy market;
      10) confirm the rules concerning organization and function of the retail electrical energy market, and the provision of services on this market;
      Note by RCLI!
      Supplementation of Article 4 provided for by sub-paragraphs 10-1), 10-2) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      11) confirm the rules concerning prevention and elimination of disruption in the single electric power system of Kazakhstan;
      12) confirm the rules for carrying out energy assessments;
      13) confirm the technical regulations of the electrical power industry;
      14) confirm the technical safety rules for operation of electric installations;
      15) confirm the technical safety rules for operation of thermal and mechanical equipment in electric stations and heat networks;
      16) confirm the rules for equipment of electrical installations;
      17) confirm the instructions for drawing up the act of emergency and technological reservation of energy supply;
      18) confirm the rules for use of electrical energy;
      19) confirm the specifications for use of heat energy;
      20) confirm the rules for provision of services by the system operator and organization and functioning of the system and ancillary services market;
      21) adopt a decision concerning inclusion of electrical energy in the list of property (active assets) acquirable on bids (auctions) in accordance with Kazakh legislation;
      22) confirm rules for rendering services to ensure reliability and stability of electric supply;
      23) confirm electricity network regulations;
      24) confirm rules for technical operation of consumers’ electrical installations;
      25) confirm technical safety rules during operation of consumers’ electrical installations;
      26) confirm fire safety regulations for energy enterprises;
      27) confirm explosive safety rules for supplying fuel for compounding and combustion of powdered fuel;
      28) confirm safety rules for working with tools and instruments;
      29) confirm rules for conducting investigations and recording disturbances in the work of the single electric power system, electricity stations, and regional boiler houses, electrical and heat networks;
      30) confirm rules for commissioning the power facilities of electric stations, electric and heat networks after technical equipment;
      31) confirm the provision concerning attestation, rationalization, recording and planning of work places in power industry;
      32) confirm the accounting rules for heat energy and heat carrier supply;
      33) confirm the rules for organization of servicing and repair of equipment, buildings and structures of electric stations, heat and electric networks;
      34) confirm the provision on procedures for approving electric power limitations of heat electric stations and actions to reduce these;
      35) confirm the rules for working with staff in energy organizations of the Republic of Kazakhstan;
      36) confirm the rules for organization of centralized bids for electrical energy;
      37) confirm the rules for assessing qualified knowledge of operating rules and regulations for managers and experts in organisations producing, transferring and distributing electrical and heat energy, and purchase of these organisations for the purpose of providing energy and monitoring the condition and safe operation of electrical and energy installations;
      38) confirm the rules for conducting periodic inspection of the technical condition of energy equipment, buildings and structures of electric stations, electric and heat networks, and of consumers’ energy equipment, with involvement of expert organizations and manufacturing plants;
      38-1) confirm the standard rules of consumption rate calculation of municipal electricity and heat supplies to consumers without meters;
      38-2) confirm the rules for organization and function of the electric power market;
      38-3) determine the system operator;
      Note by RCLI!
      Supplementation of Article 4 is provided for by sub-paragraph 38-4) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      38-5) confirm the form, method and deadline for receiving the service availability schedule by regional energy-producing and energy-transmitting organizations in autumn and winter conditions;
      38-6) confirm the rules for determining of standard available fuel reserves for energy-producing organizations in the autumn and winter period;
      38-7) confirm the standard available fuel reserve rules for energy-producing organizations in the autumn and winter period;
      39) fulfil other functions, assigned to it by the Constitution, laws of the Republic of Kazakhstan, and acts of the President of the Republic of Kazakhstan.
      Footnote. Article 4 is in the wording of Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); as amended by the Laws of the Republic of Kazakhstan dated 22.07.2011 No. 479-IV (enforced upon expiry of ten calendar days after first official publication); 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication); 03.07.2013 No. 124-V (enforced upon expiry of ten calendar days after its first official publication).

Article 5. Competence of the authorized body

      The authorized body shall:
      1) Realize the state policy concerning the electric power industry;
      2) Excluded by Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (enforced upon expiry of ten calendar days after its first official publication);
      3) develop technical regulations concerning the electric power industry;
      4) provide international cooperation in the electric power industry;
      5) develop normative legal acts of the Republic of Kazakhstan regarding production, transfer and consumption of heat energy within its competence, as well as rendering of services to keep electrical power available and securing sufficient electrical power to support demand;
      6) develop normative legal acts regulating the consumption rate of electric and heat energy for operating requirements of energy-producing, energy-transmitting and energy-supplying organizations;
      7) develop normative technical documents regarding projection, construction, operation and technical and economic characteristics of equipment;
      8) develop operating rules for consumers’ electric installations;
      9) develop technical safety rules for operation of consumers’ electric installations;
      10) develop rules for organizing the servicing and repair of equipment, buildings and structures in electric stations and heat and electrical networks;
      11) develop technical safety rules for operation of thermal and mechanical equipment in electric stations and heat networks;
      Note by RCLI!
      Sub-paragraph 12) is provided for in the wording of the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      12) form groups of energy-producing organizations;
      Note by RCLI!
      Sub-paragraph 12-1) is provided for in the wording of the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      12-1) carry out State control of compliance with requirements by the energy-producing organizations, provided for by sub-paragraphs 2) and 4)-8) of paragraph 3 of article 12, and sub-paragraph 3) of paragraph 3-2 of article 13, of this law;
      Note by RCLI!
      Supplementation of Article 5 is provided for by sub-paragraph 12-2) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2015).
      13) develop and confirm the forms of mandatory departmental reporting, prompt sheets, risk assessment criteria and six-monthly inspection plans in accordance with the Law of the Republic of Kazakhstan “Concerning state control and supervision in the Republic of Kazakhstan”;
      Note by RCLI!
      Amendment of sub-paragraph 14) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      14) determine the operator of the centralized electrical energy trade market;
      14-1) develop the form, order and terms of receiving the service availability schedule for the energy-producing and energy-transmitting organizations in autumn and winter conditions;
      14-2) determine the specimen State technical inspector’s service certificate, numbered stamp and seal;
      14-3) confirm the form of state technical inspectors’ documents;
      15) determine the special aspects of function and organization of the wholesale electrical energy market for the regions without electric connection in Kazakhstani territory, with the single electric power system of the Republic of Kazakhstan;
      15-1) confirm the method of issuing the State technical inspector’s service certificate, numbered stamp and seal;
      16) develop rules of function for the balancing electrical energy market;
      17) develop rules for organization and function of the wholesale electrical energy market and for rendering services on this market;
      18) develop rules for preventing and eliminating disruption to the single electric power system of Kazakhstan;
      18-1) develop rules for determining available fuel inventory standards for energy-producing organizations in the autumn and winter period;
      18-2) develop the available fuel inventory standards for energy-producing organizations in the autumn and winter period;
      18-3) develop and confirm rules for function of the automatic commercial metering system of electrical energy for wholesale electrical energy market entities;
      19) develop rules for carrying out energy assessments;
      20) develop operating rules and regulations for electrical stations and networks;
      21) develop technical safety rules for operating electrical installations;
      Note by RCLI!
      Exclusion of sub-paragraph 22) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      22) monitor the fulfilment of the investment commitments by energy-producing organizations, provided for in agreements, and of investment programs, provided for in investment contracts;
      23) determine methods and deadlines for accreditation of organizations for conducting energy assessments and running electrical laboratories;
      24) determine methods and attestation deadlines for heads and experts of energy organizations;
      25) develop rules for equipping electric installations;
      26) develop for compiling the certificate of emergency and technological reservation of energy delivery;
      27) develop rules for using electrical energy;
      28) develop rules for using heat energy;
      29) develop rules for provision of services by the system operator and organization and functioning of the system and ancillary services market;
      30) develop rules for organization and function of the wholesale electrical energy market;
      31) develop rules for rendering the services to ensure reliability and stability of electric supply;
      32) develop electricity supply network regulations;
      33) develop technical requirements for developing the investment program;
      34) develop preventive fire-fighting regulations for energy enterprises;
      35) develop rules for ensuring the explosive safety fuel supply for compounding and combustion of powdered fuel;
      36) develop safety rules for working with tools and widgets;
      37) develop rules for investigating and recording disruptions to the work of the single electric power system, electrical stations, district boiler houses and electric and heat networks;
      38) develop rules for commissioning power facilities of electric stations and electric and heat networks after technical equipping;
      39) develop a provision for attestation, rationalization, recording and planning of work places in the power industry;
      40) develop accounting rules for heat energy supplies and heat carrier;
      Note by RCLI!
      Exclusion of sub-paragraph 41) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      41) conclude agreements and investment contracts with energy-producing organizations;
      42) develop a provision for coordination of electric power limitations in heat electric stations and actions to reduce them;
      43) develop rules for working with staff in energy organizations in the Republic of Kazakhstan;
      44) develop rules for organizing the centralized electrical energy bids;
      45) develop rules for conducting qualified knowledge assessments of operating rules and rules for heads and experts of organizations producing, transferring and distributing electrical and heat energy and their purchase for the purpose of providing energy monitoring the condition and safety of operation of electrical and energy installations;
      46) develop rules for periodically inspecting the technical condition of energy equipment, buildings and structures of electrical stations and electrical and heat networks, and consumers’ energy equipment of the consumers, using expert organizations and manufacturing plants;
      Note by RCLI!
      Sub-paragraph 46-1) shall be valid till 01.01.2017 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V
      46-1) request and receive information about fulfilment of investment commitments from the energy-producing organizations, in accordance with requirements for disclosure of information, as determined by Kazakhstani legislation, which is a commercial or other secret, protected by law;
      46-2) develop and confirm an advanced electrical power allocation scheme;
      46-3) issue tenders for construction of new generating installations to be commissioned;
      46-4) conclude a contract with the successful tenderer, following the results of the bidding for construction of new generating installations to be commissioned;
      46-5) determine a successful tenderer for construction of generating installations to be commissioned for the system operator, for conclusion with that operator of a contract for purchasing services for maintaining electrical power availability of generating installations to be commissioned on a tendering basis, and the price, volume and terms of the purchase of services for keeping electrical power available;
      Note by RCLI!
      Supplementation of Article 5 is provided for by sub-paragraph 46-6) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      46-7) confirm the forecasting balances of electrical energy and power;
      Note by RCLI!
      Supplementation of Article 5 is provided for by sub-paragraph 46-8) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      47) exercise other powers, provided by this Law, other laws of the Republic of Kazakhstan, and acts of the President and Government of the Republic of Kazakhstan.
      Footnote. Article 5 is in the wording of Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (enforced from 13.10.2011); as amended by laws of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after its first official publication); 10.07.2012 No. 36-V (enforced upon expiry of ten calendar days after its first official publication); 03.07.2013 No. 124-V (enforced upon expiry of ten calendar days after its first official publication).

Article 5-1. Competence of duly authorized municipal economic body

      The duly authorized municipal economic body shall:
      1) participate in the development and realization of the state electric power industry policy, within its competence;
      2) develop and confirm the technical rules and regulations for supply of electricity and heat within inhabited localities, within its competence;
      3) organize methodological support for supply of electricity and heat within inhabited localities;
      4) organize the conducting of design, survey, scientific research and development works in the supply of electricity and heat within inhabited localities;
      5) develop the standard rules for calculating requirements for municipal services of electricity and heat supply to consumers without metering instruments;
      6) exercise other powers, provided for by laws of the Republic of Kazakhstan and acts of the President and Government of the Republic of Kazakhstan.
      Footnote. The Law is supplemented by article 5-1 in accordance with Law of the Republic of Kazakhstan dated 22.07.2011 No. 479-IV (enforced upon expiry of ten calendar days after its first official publication).

Article 6. State energy control

      Footnote. Title as amended by Law of the Republic of Kazakhstan dated 06.01.2011 No. 378-IV (enforced upon expiry of ten calendar days after its first official publication).

      1. Control of the electric power industry shall be wielded by the State energy control authority.
      2. The State energy control authority shall control:
      1) fulfilment of technical requirements of normative legal acts of the Republic of Kazakhstan concerning the electric power industry;
      2) operation and technical condition of energy equipment in electric stations, electrical and heat networks, and consumers’ electrical and heat-consuming installations;
      3) (Deleted 27.07.2007 No. 316)
      3. State energy control in the electric power industry shall be wielded in the form of investigation and in other forms.
      Checks shall be carried out in accordance with the Law of the Republic of Kazakhstan “Concerning State control and supervision in the Republic of Kazakhstan”. Other forms of state control shall be carried out in accordance with this Law.
      4. – 7. Excluded by Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (for method of enforcement see article 2).
      8. For the remedy of detected faults, the head of electricity generation facility shall be issued with a standard form order showing deadlines and persons responsible for the fulfilment, or a document, on the basis of which the head of the electricity generation facility develops the plan of measures to remedy detected faults, shall be drawn up and presented to the body for State energy control.
      9. The energy control shall examine:
      1) compliance with requirements of technical conditions concerning quality of electrical and heat energy;
      2) compliance with regulations for using electrical and heat energy, within its competence;
      3) rational and economic use, and optimization of methods of production, transfer and consumption of electrical and heat energy;
      4) availability of electrical stations, electrical and heat networks for work in autumn and winter conditions.
      10. The State energy control authority shall:
      1) participate in the work of commissions of electrical energy enterprises to assess readiness of items and equipment for work in winter conditions;
      2) keep a record of investigations of major disruption to the operation of electric stations, heat and electrical networks leading to division of the single electric power system of the Republic of Kazakhstan into several parts, wide-scale consumer restrictions on electrical and heat energy, and significant damage to energy equipment;
      3) issue permits for connection to electricity networks by consumers’ electric installations with installed capacity of more than 100 kW.
      11. As prescribed by Kazakh legislation the State energy control body has the right to:
      1) access electrical and energy installations;
      2) carry out periodical inspection of the technical condition of energy equipment in electric stations and electrical and heat networks, and on consumers’ energy equipment;
      3) certify the heads and experts of energy organizations;
      4) accredit organizations for conducting energy assessments and electrical laboratory tests, controlling fulfilment of energy efficiency policies, and inspecting legal entities’ energy efficiency;
      5) prepare proposals to improve Kazakh legislation concerning the electric power industry;
      6) call in experts to inspect subsidiary energy equipment, comprehensively inspections energy organizations and investigate disruptions to the operation of energy equipment in electricity stations and electrical and heat networks;
      7) organize development of the normative and methodical documents and the legal and economic mechanics of energy efficiency;
      8) introduce proposals for owners of organizations on bringing disciplinary action against persons guilty of allowing damage, accident and other gross breaches of technical requirements of normative legal acts concerning the electric power industry, or sending materials to the relevant state bodies concerning administrative or criminal liability of persons guilty of breaching Kazakh legislation concerning the electric power industry, in accordance with the laws of the Republic of Kazakhstan.
      Footnote. Article 6 is in the wording of Law of the Republic of Kazakhstan dated January 31, 2006 No. 125; as amended by the Laws of the Republic of Kazakhstan dated July 27, 2007 No. 316 (enforced from the date of its first official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 17.07.2009 No. 188-IV ( for method of enforcement see Article 2); 06.01.2011 No. 378-IV (enforced upon expiry of ten calendar days after first official publication); 15.07.2011 No. 461-IV (enforced from 30.01.2012); and 03.07.2013 No. 124-V (enforced upon expiry of ten calendar days after official publication).

Article 7. Competence of State body managing natural monopolies and regulated markets

      The State body managing natural monopolies and regulated markets shall:
      1) confirm the method of differentiation of electrical energy tariffs by the energy-supplying organizations according to day zones and/or depending on consumption volumes by the individuals;
      Note by RCLI!
      Exclusion of sub-paragraph 2) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      2) conclude investment contracts with energy-producing organizations;
      Note by RCLI!
      Exclusion of sub-paragraph 3) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      3) confirm the individual tariff;
      4) keep, post and update every ten days, on a website, a register of organizations licensed to purchase of electrical energy for the purpose of delivering energy;
      Note by RCLI!
      Sub-paragraph 5) is provided in the wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      5) carry out state control of compliance by energy-producing organizations with requirements, provided by sub-paragraphs 1) and 3) of paragraph 3, paragraph 4 of article 12, paragraphs 4 and 5 of article 12-1, sub-paragraphs 1), 2) and 4) of paragraph 3-2 of article 13 of this Law, and introduce compulsory orders to remedy detected faults;
      6) carry out control of compliance by energy-supplying organizations with requirements, provided by sub-paragraph 3-3 of article 13 and paragraph 1 of article 18 of this Law, and introduce compulsory orders to remedy detected faults;
      Note by RCLI!
      Amendment of sub-paragraph 7) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      7) go to court in the cases of violation by energy-producing organizations of requirements, provided for by paragraphs 3, 4 of article 12, paragraphs 4, 5 of article 12-1, and sub-paragraphs 1), 2) and 4) of paragraph 3-2 of article 13 of this Law;
      8) develop and confirm the normative legal acts, determined by this Law, within its competence;
      Note by RCLI!
      Sub-paragraph 8-1) is provided in the wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      8-1) request and receive information from the energy-producing organizations concerning fulfilling of requirements by energy-producing organizations, provided for by sub-paragraphs 1) and 3) of paragraph 3, paragraph 4 of article 12, paragraphs 4 and 5 of article 12-1 and sub-paragraphs 1), 2) and 4) of paragraph 3-2 of article 13 of this Law, in compliance with requirements determined by the laws of the Republic of Kazakhstan, concerning disclosure of information that constitutes a commercial or other secret protected by law;
      9) exercise the other powers provided for by this Law, other laws of the Republic of Kazakhstan, and acts of the President and Government of the Republic of Kazakhstan.
      Footnote. Article 7 is in the wording of Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); as amended by the Laws of the Republic of Kazakhstan dated 10.07.2009 No. 178-IV; dated 05.07.2011 No. 452-IV (enforced from 13.10.2011); dated 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after its first official publication); and 06.03.2013 No. 81-V (enforced upon expiry of ten calendar days after its first official publication).

Article 7-1. Licensing in the electrical energy industry

      Selective types of activity in the electrical energy industry shall be subject to licensing in accordance with the Kazakh licensing legislation.
      Footnote. Article 7-1 is supplemented by Law of the Republic of Kazakhstan dated 27 July, 2007 No. 316 (enforced from the date of its official publication).

Article 8. Inadmissibility of interference in production and technological activity

      Neither the central executive bodies nor then local representative and executive bodies have the right to interfere in the production and technological activities of organizations connected with production and transfer of electrical and heat energy or with technological management of these processes, with the exception of cases provided for by laws of the Republic of Kazakhstan.
      Note by RCLI!
      Article 9 anticipates changes by Kazakh law dated 16.05.2014 no. 203-V (enforced six months from date of first official publication).

Article 9. Planning and construction of electrical stations, power transmission lines and substations

      1. The planning and construction of duplicative (shunt) power transmission lines and substations shall be carried out with preliminary information and coordination with the authorized body, the State body managing natural monopolies and regulated markets, and the system operator.
      2. The planning, construction and operation of electric stations, power transmission lines and substations may be carried out on the basis of concession agreements.
      2-1. The integrated test of electric installations of energy-producing organization, including use of renewable energy sources, shall be conducted under the test program coordinated with the system operator after a permit from the State body for State energy control, and in existence of the buy-and-sell agreement for the full volume of electrical energy produced during the integrated test, in accordance with electricity supply network regulations.
      3. Interregional and/or interstate power transmission lines, substations and distribution substations with a voltage of 220 kV and more, constructed on the basis of concession agreements, shall, for the period of their validity, be in the temporary possession of a concessionaire and transferred from the moment of their creation.
      4. The centralized operational dispatch management, and the operation of interregional and/or interstate power transmission lines, substations and distribution substations with a voltage of 220 kV and more, constructed on the basis of concession agreements, shall be carried out by the system operator on the basis of the contracts.
      Footnote. Article 9 is in the wording of Law of the Republic of Kazakhstan dated 11.04.2006 No. 136 (enforced from the date of its official publication); as amended by laws of the Republic of Kazakhstan dated 05.07.2008 No. 66-IV (for method of enforcement see Article 2); 29.12.2008 No. 116-IV (enforced from 01.01.2009); and 04.07.2013 No. 128-V (enforced upon expiry of ten calendar days after first official publication).

Chapter 2-1. General safety requirements in the electrical power industry

      Footnote. Chapter 2-1 is supplemented by the Law of 29 December 2006 No. 209, (for method of enforcement see article 2).

Article 9-1. General provisions

      1. Institutional arrangements in the operation of electric equipment, electric and heat networks and consumers’ installations shall ensure the safety for life and health of humans and the environment.
      2. Subjects of technical regulation are electrical equipment, electrical and heat networks and consumers’ installations, intended for production, transfer and use of electric and heat energy, as well as electric and heat energy.
      3. The quality indices of electrical energy on the outputs of consumers’ electrical devices shall comply with established norms.
      4. Quality characteristics of electrical energy are:
      maximum divergence of actuating voltage from a nominal value;
      divergence of electrical frequency.
      5. Parameters of heat energy for warming in main and distribution pipelines shall comply with the established temperature chart.
      Footnote. Article 9-1 as amended by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication).

Article 9-2. Safety requirements in planning equipment and electrical installations in the electric power industry

      1. In projecting and operation of electric networks, fulfilment of requirements established for electrical energy shall be ensured in accordance with this Law and technical regulations.
      2. Equipment in electric stations and electric and heat networks, and consumers’ installations, intended for production, transfer and consumption of electrical and heat energy, shall comply with determined technical regulations.

Article 9-3. Safety requirements for electrical equipment and materials used in production, transfer and consumption of electric and heat energy

      1. Electrical equipment and materials produced in and imported into the Republic of Kazakhstan shall comply with requirements established by technical regulations, and in cases provided for by Kazakh legislation shall undergo a compliance confirmation procedure.
      2. The electrical equipment and materials shall comply with the requirements concerning safety of life and health of human and environment.
      3. The commissioning of equipment in electrical stations, electrical and heat networks and consumers’ installations shall be subject to compliance confirmation, submitted by technical regulations, shall not be allowed without a compliance confirmation document.
      4. Equipment in electrical stations, electrical and heat networks and consumers’ installations shall be in a technically sound state that ensures safe conditions of operation.

Chapter 3. System operator and participants in relations of production, transfer and consumption on the electrical energy market

Article 10. System operator

      1. The system operator shall fulfil the following functions:
      1) render system services for transfer of electrical energy through the national electric network in accordance with the contract, and ensure its servicing and continued operational availability;
      2) render system services in technical dispatch control, carrying out centralized operational dispatch management of operating regimes of the single electric power system of the Republic of Kazakhstan in accordance with the contract, including balancing and generation of daily schedule of electrical energy production-consumption;
      3) ensure reliability of work of the single electric power system of the Republic of Kazakhstan;
      Note of RCLI!
      Sub-paragraph 4) shall be valid till 31.12.2007.
      4) render system services for regulation of electrical capacity;
      5) render system services for production-consumption balancing of electrical energy;
      6) provide financial settlement of unbalances of electrical capacity, as prescribed by Kazakh legislation;
      7) determine the volume, structure and distribution of power reserves between energy-producing organizations, and activate power reserves in the single electrical energy system of the Republic of Kazakhstan;
      8) organise the function of the balancing electrical energy market and the system and ancillary services market;
      9) cooperate with electrical energy systems of neighbouring states in the management and securing of stability regimes of paralleled operation;
      10) provide technical and methodological management in the creation of a unified information system, an automatic system of revenue metering of electrical energy, adjoined devices of protection equipment, and automatic protective devices of all wholesale electrical energy market entities;
      11) secure the equal conditions for access by wholesale electrical energy market subjects to the national electricity network;
      12) provide participants in the wholesale electrical energy market of the Republic of Kazakhstan concerning information that is not a commercial or other secret protected by law;
      13) coordinate the repair of the main equipment of electric stations, substations, power transmission lines, relay protection devices, automatic protective devices, technological management systems and ensuring their availability for service;
      14) participate in the development of operating regimes of hydroelectric stations, taking account of their water economy balances and the operating regimes of the single electrical energy system of the Republic of Kazakhstan;
      15) develop forecasting balances of electrical energy and capacity;
      16) organize the function of the electrical capacity market;
      Note by RCLI!
      Supplementation of paragraph 1 is provided for by sub-paragraph 17) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Note of RCLI!
      Supplementation of paragraph 1 is provided for by sub-paragraph 18) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (be enforced from 01.01.2015).
      19) conclude a contract for purchase of keeping the electrical capacity of newly commissioned generating installations available, with a successful tenderer at the price, volume and periods determined by the authorized body;
      Note by RCLI!
      Supplementation of paragraph 1 is provided for by sub-paragraphs 20) and 21) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Note by RCLI!
      Supplementation of paragraph 1 is provided for by sub-paragraph 22) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2015).
      23) Carry out other functions provided for by this Law and by Kazakh legislation with regard to support of use of renewable energy sources.
      2. The system operator has the right to buy and sell electrical energy in the following cases:
      1) for operating and production requirements;
      Note of RCLI!
      Sub-paragraph 2 shall be valid till 31.12.2007.
      2) for securing contracted values of electrical energy transfers with electrical energy systems of neighbouring states;
      3) on a balancing electrical energy market;
      Note by RCLI!
      Excluded by Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (enforced upon expiry of six months after its first official publication).
      3. The system operator shall provide centralized operational dispatch management of the single electric power system of the Republic of Kazakhstan.
      4. Centralized operational dispatch management of the single electric power system of the Republic of Kazakhstan shall include:
      1) regimes of management of production, transfer and consumption of electrical energy in the single electric power system of the Republic of Kazakhstan, realizing buy–and-sell agreement conditions, transferring of electrical energy, and regulating electrical capacity and production-consumption balancing of electrical energy;
      2) management regimes for interstate transfer of electrical energy;
      3) securing the prevention, localization and elimination of disruptions to the single electric power system of the Republic of Kazakhstan;
      4) operational management of power reserves in the single electric power system of the Republic of Kazakhstan;
      5) determining the structure, principles, locations, volumes and system settings of protection equipment, automatic and performance protective devices, ensuring the reliable and stable operation of the single electric power system of the Republic of Kazakhstan;
      6) formation and confirmation of daily schedules of electrical energy production-consumption in the single electric power system of the Republic of Kazakhstan;
      7) compilation of actual production-consumption balances of electrical energy on the wholesale electrical energy market.
      5. Centralized operational dispatch management of regimes of production, transfer and consumption of electrical energy in the single electric power system of the Republic of Kazakhstan, and issue of the relevant instructions, shall be carried out on the basis of current qualitative characteristic of electrical energy values – capacity, frequency and voltage.
      Footnote. Article 10 as amended by Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); 04.07.2009 No. 166-IV; 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication); 04.07.2013 No. 128-V (enforced upon expiry of ten calendar days after its official publication).

Article 11. Instructions concerning regime of production, transfer and consumption of electrical energy in carrying out centralized operational dispatch management

      1. Orders of the system operator concerning regimes of production, transfer and consumption of electrical energy in fulfilment of centralized operational dispatch management shall be mandatory for all wholesale electrical energy market entities.
      2. The system operator may turn off the electric installations of wholesale electrical energy market entities that fail to fulfil operational orders concerning regimes of production, transfer and consumption of electrical energy from electric networks under the centralized operational dispatch management.

Article 12. Rights and obligations of participants in electrical energy production and transfer

      1. Participants in electrical energy production and transfer may:
      1) use the system services on the basis of concluded contracts;
      2) receive technical information from the system operator, as required for carrying out production and transfer of electrical energy.
      2. Participants in production and transfer of electrical energy are obliged to:
      1) provide information to the system operator as required for centralized operational dispatch management of the single electric power system of the Republic of Kazakhstan, and factual information on technical-economic indicators of electric stations operation (generation, bus-bar output, in-house needs, unit consumption on the bus-bar electrical energy output);
      2) provide access to the metering commercial instruments for the system operator;
      3) secure the quality and safety of electrical energy in accordance with requirements established by technical regulations;
      4) jointly with the system operator, carry out regulation and maintenance of standard frequency in the single electric power system of the Republic of Kazakhstan on the basis of concluded contracts;
      5) maintain the main and ancillary equipment, automatic and performance protective devices, protection equipment and dispatch process management in working condition, in accordance with requirements of technical regulations;
      6) establish new, and improve existing, operating devices in protective equipment and automatic devices, in volumes determined by the authorized body.
      3. Energy-producing organizations, with the exception of energy-producing organizations using renewable energy sources, are obliged to:
      Note by RCLI!
      Amendment of sub-paragraph 1) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      1) carry out realization of electrical energy on the tariffs, not exceeding the properly marginal, constructed or individual tariff, with the exception of cases of realization on the spot biddings (not more than ten percent from the volumes of produced electrical energy by them), balancing markets and for export;
      Note by RCLI!
      Exclusion of sub-paragraph 2) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      2) conclude an agreement with the authorized body, as established by legislation, fulfil the investment commitments provided in it, and present an annual report on their fulfilment to the authorized body;
      Note by RCLI!
      Exclusion of sub-paragraph 3) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      3) when an investment contract is concluded, fulfil the investment program and present an annual report on its fulfilment to the authorized body and state body managing natural monopolies and regulated markets;
      Note by RCLI!
      Sub-paragraphs 4)-8) shall be valid until 01.01.2017 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      4) present a report on costs of production and sales of electrical energy, showing volumes of production and sales of electrical energy for the previous calendar year, to the authorised organisation, annually on or prior to March 31;
      5) publish information volumes and directions of investments provided for by agreement for the following year, in the mass media annually on or prior to December 31;
      6) publish information on fulfilment of investment commitments provided for by agreement for the previous year, in mass media, annually on or prior to May 1;
      7) annually, on or prior to May 1, hold public hearings on the results of implementation of agreements with the invitation of representatives of state bodies, consumers and their public associations, mass media and independent experts, with advertising on holding the public hearings in mass media not less than five calendar days before the holding of public hearings;
      8) at the request of the authorised organisation, provide information in a hard copy and/or on electronic media within established periods, which may not be less than five working days from the date of receiving the relevant request, in accordance with the sub-paragraph 46-1) of Article 5 of this Law;
      9) provide information in a hard copy and (or) on electronic media after demand of the authorized body managing natural monopolies and regulated markets in established periods, which may not be less than five working days from the date of receiving the relevant request, in accordance with the sub-paragraph 8-1) of Article 7 of this Law;
      Note by RCLI!
      Supplementation of paragraph 3 by sub-paragraph 10) is provided for in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Note by RCLI!
      Amendment of part 1 of paragraph 4 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      4. If electrical energy is sold with excess over marginal, constructed or individual tariff respectively, the energy-producing organization must refund the excess amount to the wholesale and/or retail market entities, with the exception of amounts received from electrical energy sales on spot biddings (not more than ten percent of the volumes of electrical energy produced by them), on balancing market and for export.
      Note by RCLI!
      Exclusion of parts two and three are provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2017).
      In case of non-fulfilment by the energy-producing organisation of the instructions concerning fulfilment of investment program by the energy-producing organization within established period, as introduced by the state body managing natural monopolies and regulated markets, the energy-producing organization must reimburse to the wholesale and retail market entities the funds provided for fulfilment of investment program and not used in its realization.
      The term “funds provided for fulfilment of the investment program” refers to the difference between actual income (proceeds) received by the energy-producing organization in application of tariffs that do not exceed the constructed or individual tariff respectively, and actual expenses provided in determination of the constructed or confirmation of individual tariff as established manner by Kazakh legislation.
      Note by RCLI!
      Paragraph 5 shall be valid till 01.01.2017 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      5. In case of non-fulfilment by the energy-producing organisation of the investment commitments provided for in the agreement, the energy-producing organization reimburse to the wholesale market entities the received funds provided for by the agreement for fulfilment of investment commitments and not used for their sales by reduction of selling price for electrical energy for the following calendar year, as prescribed by the Government of the Republic of Kazakhstan, with information placed in the mass media.
      The obligation specified in part 1 of this paragraph, shall not extend to energy-producing organizations that accepted additional investment commitments during conclusion of agreements for the following calendar year for the amount of non-fulfilment, taking account of the official refinance rate of the National Bank of the Republic of Kazakhstan on the date of conclusion of agreement.
      In case of non-fulfilment by the energy-producing organisation during the next calendar year of additional investment commitments as provided for by the agreement, these commitments may not be accepted by the energy-producing organization and shall be refunded to the wholesale market entities in accordance with part 1 of this paragraph.
      Note by RCLI!
      Supplementation of Article 12 is provided for by paragraph 6 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Footnote. Article 12 as amended by laws of the Republic of Kazakhstan dated 29.12.2006 No. 209 ( for method of enforcement see Article 2); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication); 04.07.2013 No. 128-V (enforced upon expiry of ten calendar days after first official publication).

      Note by RCLI!
      Title of Article 12-1 provided in wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).

Article 12-1. Procedure for determining marginal, constructed and individual tariffs

      Note by RCLI!
      Exclusion of paragraph 1 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).

      1. The marginal, constructed and individual tariffs shall be determined as prescribed by the Government of the Republic of Kazakhstan.
      Note by RCLI!
      Paragraph 2 provided in wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      2. The energy-producing organization shall individually determine the selling price for electrical energy, but not more than the marginal tariff of the relevant group of energy-producing organizations.
      The marginal tariff shall be approved according to energy-producing organization group for a period of no less than seven years with division into years, and adjusted annually considering the need to make the branch attractive in investment terms.
      The basis for determining the marginal tariff for the first year of its validity is the maximum actual price, calculated in the relevant group of energy-producing organizations during the year preceding the year of introduction of marginal tariffs.
      Note by RCLI!
      Supplementation of Article 12-1 is provided for by paragraph 2-1 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Note by RCLI!
      Sub-paragraphs 1-5 of paragraph 3 shall be valid until 01.01.2016 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      3. For selling of electrical energy at prices not exceeding the marginal tariff, the energy-producing organization shall conclude an agreement with the authorized body in established manner.
      The agreement shall include the investment obligations of the energy-producing organization on realization of measures aimed at establishing new active assets and extending, updating, supporting, reconstructing and re-equipping the current active assets.
      The agreement shall determine the list of actions connected with production of electrical energy, with indication of actual volumes and amounts of investments for every action.
      On conclusion of agreement, the conclusion of the independent energy assessment for confirming the technical condition of equipment shall be considered.
      Introduction of amendments and/or additions to the agreement with reduction of total amount of investments is not allowed, with the exception of cases of reduction of selling price of electrical energy within the frame of marginal tariff and volume of electrical energy production.
      Note by RCLI!
      The sub-paragraph shall be valid till 01.01.2017 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      The authorized organisation shall monitor the fulfilment of agreements by the energy-producing organizations, expenses for production and sales of electrical energy, and volumes of production and sales of electrical energy.
      Note by RCLI!
      The sub-paragraph shall be valid till 01.01.2016 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      The energy-producing organization shall individually determine its investment commitments in accordance with the planned depreciation deductions and with the net profit ratio from electrical energy sales at prices not exceeding the marginal tariff.
      Note by RCLI!
      Paragraph 3-1 shall be valid till 01.01.2016 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      3-1. The energy-producing organization shall present the project agreement to the authorized body before October 1 of the year preceding that for which the agreement is concluded.
      According to the results of the consideration, the authorized organisation shall send a copy of the signed agreement or motivated decision to refuse conclusion of agreement, within forty calendar days calculated from the date of receipt the project agreement by the authorized body.
      Unwarranted refusal or avoidance of conclusion of agreement by the parties shall not be allowed.
      If the authorised organisation fails to provide its answer within the periods established by this Law, the agreement shall not be considered concluded.
      If agreement is not reached under the terms of project agreement within thirty calendar days from the date of receipt by the energy-producing organization of the authorised organisation’s refusal to conclude of agreement, the disagreements arising on conclusion of agreement shall be settled in accordance with the Kazakh civil legislation.
      In the period of settlement of the dispute, the energy-producing organization shall sell electrical energy at a price not exceeding expenses for generation of electrical energy, excluding depreciation costs and profit.
      Note by RCLI!
      Exclusion of paragraph 4 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      4. If the investment commitments of the energy-producing organization cannot be fulfilled through funds received from electrical energy sales within the frame of marginal tariffs, the energy-producing organization may apply a constructed or individual tariff for realization of the investment program subject to approval of the technical requirement and conclusion of the investment contract.
      The investment program shall, before realisation commences, be presented to the authorized organisation and the State organisation managing natural monopolies and on the regulated markets.
      On the basis of the investment program, the energy-producing organization shall conclude the investment contract with the authorized organisation and the state organisation managing natural monopolies and on the regulated markets in the established manner.
      Note by RCLI!
      Exclusion of paragraph 5 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      5. The calculated tariff shall not exceed the prices of electrical energy determined in the technical and economic assessment of the investment program developed and confirmed in accordance with Kazakh legislation.
      The calculated tariff shall be applied by the energy-producing organization from the moment of conclusion of investment contract and may be valid within the period of fulfilment of the investment commitments as provided in investment contract.
      The calculated tariff may exceed the price of electrical energy determined in the technical and economic assessment of the investment program, subject to reconciliation of amendments in the estimate documentation as prescribed by Kazakh legislation.
      Note by RCLI!
      Exclusion of paragraph 6 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      6. The energy-producing organization may apply the individual tariff at any stage of realization of the investment program.
      The energy-producing organization shall apply the individual tariff on the basis of the decision of the state organisation managing natural monopolies and on the regulated markets, as received in recognition of investment program parameters and estimate documentation.
      The individual tariff may not be lower than the calculated tariff during fulfilment of capacity introduction obligations by the energy-producing organization, as provided by investment contract.
      The individual tariff shall be more than constructed tariff if the cost of the investment program increases. In this case, the increase in the investment program cost shall be coordinated with the authorized organisation and the state organisation managing natural monopolies and on the regulated markets.
      Footnote. Chapter 3 is supplemented by Article 12-1 in accordance with Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); as amended by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after its first official publication).

Article 13. Requirements to participants in production and transfer of electrical energy

      1. The regional electric grid companies shall ensure compliance with daily electrical energy production-consumption schedules by all retail electrical energy market entities connected to their network, and compliance with the net power flows of electrical energy agreed with the system operator between the regional electric grid company networks and the national electric network.
      Note by RCLI!
      Paragraph 1-1 is provided the wording of Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (enforced upon expiry of six months after first official publication).
      1-1. The regional electric grid companies to whose electric networks the items using the renewable energy sources are directly joined, are obliged to buy in full measure the electrical energy produced by the relevant qualified energy-producing organizations using renewable energy sources.
      2. In case of termination of energy delivery other than through the fault of the consumer, the energy-supplying organization (the guaranteeing electrical energy supplier) shall secure energy delivery to consumers on a contractual basis.
      3. The energy-supplying organizations shall purchase electrical energy from the energy-producing organization for the purpose of energy delivery to their consumers.
      For provision of electrical supply services, the energy-producing organizations shall conclude a contract for electricity supply in accordance with the standard electricity supply agreement.
      3-1. The energy-producing organizations are obliged to sell produced electrical energy:
      1) to consumers, energy-producing organization and regional transmission organizations (to cover normative losses of electrical energy in individual networks and for economic needs) and for export on the basis of contracts concluded on the decentralized buy-and sell- electrical energy market in accordance with requirements of Kazakh civil legislation;
      2) on a centralized electrical energy trade market;
      3) on a balanced electrical energy market.
      3-2. The energy-producing organization shall be prohibited to:
      1) Sell (trade in) of electrical energy to individuals and legal entities that are not wholesale and/or retail market entities, with the exception of electrical energy export;
      2) Acquire (purchase) electrical energy from the other energy-producing organization, with the exception of emergency disposal of capacities in a volume determined according to the daily schedule of electrical energy production, and/or acquisition of electrical energy as per individual needs;
      Note by RCLI!
      Supplementation of paragraph 3-2 is provided for by sub-paragraph 3) in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      4) Acquisition (purchase) of electrical energy for the purpose of energy delivery, with the exception of cases of:
      emergency disposal of capacities in s volume, determined according to the daily electrical energy production schedule;
      purchase of electrical energy from the accounting and finance centre to support renewable energy sources, produced by subjects using renewable energy sources.
      3-3. The energy-supplying organization shall be prohibited from selling (trading in) electrical energy to the other energy-supplying organization, and from acquiring (purchasing) it from the other energy-supplying organization.
      The register of organizations licensed to purchase electrical energy for the purpose of delivering energy, shall be established, maintained and published on a website by the State body managing natural monopolies and on the regulated markets.
      Note by RCLI!
      Amendment of paragraph 4 is provided for in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      4. The energy-producing organizations shall secure maintenance of power reserves, volume, structure and siting as prescribed by the rules for organizing and operating the system and ancillary services market.
      5. Those involved in relations of production, transfer and consumption of electrical energy shall bear mutual obligations for financial settlement on a balanced electrical energy market between contractual and actual electrical energy production-consumption values, on the basis of balanced electrical energy volume calculations presented by the system operator and based on the results of physical settlement of electrical energy unbalances.
      Note by RCLI!
      Paragraph 6 shall be enforced from 01.01.2008.
      6. The wholesale electrical energy market entities are obliged to participate in the balancing mechanism (market) on a real-time basis, regardless of form of ownership.
      6-1. The wholesale electrical energy market entities are obliged to participate in the balancing electrical energy market, functioning in simulation mode, on the basis of contracts, concluded with the system operator, for providing system services to organise the production-consumption balance of electrical energy.
      7. Energy-producing organizations that are hydroelectric stations are obliged to sell produced electrical energy in the period of environmentally- protected water passes on centralized bids.
      Footnote. Article 13 as amended by laws of the Republic of Kazakhstan dated 27.05.2007 No. 316 (enforced from the date of its official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 04.07.2009 No. 166-IV; 10.07.2009 No. 178-IV; 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication); 04.07.2013 No. 128-V (enforced upon expiry of ten calendar days after first official publication).

Chapter 4. Organizing energy delivery on the basis of functioning of the electrical energy market

Article 14. Electric and heat energy market

      1. Energy in the Republic of Kazakhstan shall be delivered under conditions of functioning of electric and heat energy markets.
      2. Electric and heat energy are the market product.
      3. The electrical energy market consists of two levels: wholesale and retail electrical energy markets. The heat energy market consists of one level: retail market.
      4. Is excluded by Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (enforced from 13.10.2011).
      5. The system operator, regional electric grid companies, and other organizations possessing electricity networks, shall secure free access for all market participants to the electrical energy market as prescribed by the state body managing natural monopolies, and on the regulated markets.
      6. The regional transmission organization has no right to refuse to connect energy-producing and energy-supplying organizations and consumers to electric and heat networks, or to transfer electric or heat energy upon condition of fulfilment by them of requirements determined by the normative legal acts of the Republic of Kazakhstan.
      7. Relations arising during production, transfer and consumption on the electric and heat energy market shall be regulated in the electric power industry by the relevant contracts.
      Footnote. Article 14 as amended by laws of the Republic of Kazakhstan dated 11.04.2006 No. 136 (enforced from date of first official publication); 27.07.2007 No. 316 (enforced from date of first official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 05.07.2011 No. 452-IV (enforced from 13.10.2011).

Article 15. Wholesale electrical energy market

      1. The wholesale electrical energy market shall consist of:
      1) market for decentralized buy-and-sell of electrical energy, functioning on the basis of buy-and-sell agreements concluded by the market participants at the prices and subject to delivery conditions determined by agreement between the parties;
      2) centralized electrical energy trade market constituting an organized trading platform for buying and selling electrical energy on a short term (spot biddings), medium term (week, month) and long term (quarter, year) basis;
      3) balancing market in real-time mode, functioning for the purpose of physical and subsequent financial settlement of hourly unbalance arising during operating days between actual and contractual values of electrical energy production-consumption in the single electric power system of the Republic of Kazakhstan, confirmed by the system operator in a daily electrical energy production-consumption schedule;
      4) market of system and ancillary services, functioning on the basis of acquisition from the wholesale electrical energy market entities and of provision of the relevant services by the system operator for the wholesale electrical energy market entities, for ensuring the standards of work of the single electric power system of the Republic of Kazakhstan and the quality of electrical energy as determined by the national standards.
      Note by RCLI!
      Supplementation of paragraph 1 by sub-paragraph 5) is provided for in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      Note by RCLI!
      Amendment of sub-paragraph 1 of paragraph 2 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      2. An operator on the centralized electrical energy trade market shall:
      Note by RCLI!
      The sub-paragraph 1 is provided in the wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      1) organize and conduct spot biddings;
      Note by RCLI!
      Amendment of sub-paragraph 2) is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      2) organize and conduct the centralized electrical energy trade for medium term (week, month) and long term (quarter, year) periods;
      3) secure conditions of equal access to the centralized electrical energy market for wholesale electrical energy market entities;
      4) determine compliance of the wholesale electrical energy market entities with requirements determined by the rules of centralized electrical energy trade;
      5) register and record concluded transactions in buying and selling of electrical energy on centralized electrical energy bids;
      6) provide information to the wholesale electrical energy market entities, within its competence, at indicative prices for electrical energy calculated on centralized bids and other market information;
      7) organize and conduct financial settlement payments for transactions concluded on spot bids.
      3. The functioning of balancing electrical energy market in simulation mode shall be carried out under the terms and conditions determined by the Government of the Republic of Kazakhstan.
      Footnote. Article 15 as amended by laws of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); 05.07.2011 No. 452-IV (enforced from 13.10.2011); 10.07.2012 No. 31-V (enforced upon expiry of ten calendar days after first official publication).

Article 15-1. Method of development of prospective electrical capacity allocation scheme, and for tendering for construction of newly-commissioned generating installations

      1. Annually, and by October 15, the system operator shall develop the forecasting balance of electrical energy and capacity for the next seven years period and publish it in the mass media.
      2. The authorized organisation shall compile an annual forecast of imbalance of electrical capacity on the basis of forecast balances of electrical energy and capacity, and develop and confirm the prospective electrical capacity allocation scheme in which the newly-commissioned generating installations are included, the tender for these being posted on its website.
      3. To cover forecast imbalances of electric capacity, the authorized organisation shall hold a tender for construction of generating installations to be commissioned.
      4. The authorized organisation shall publish an announcement of tender for construction of generating installations to be commissioned, no later than three working days from the date of confirmation of tender documentation but no less than thirty calendar days before the final date of presentation of the tender documents and materials by potential investors.
      5. The package documentation for construction of generating installations to be commissioned shall contain:
      1) description and required technical, qualitative and operating characteristics of newly-commissioned generating installations;
      2) draft contract on construction of generating installations to be commissioned.
      6. Potential investors participating in a tender for construction of generating installations to be commissioned shall present:
      1) copies of constitutional documents;
      2) documents confirming existence of sufficient financial and material resources for construction of generating installations to be commissioned, showing an account of individual funds of no less than thirty percent of the overall cost of generating installations;
      3) a tax authority certificate, not more than three months old, confirming absence of debts on the date of tendering.
      7. A tenders commission shall sum up results of the tender for construction of generating installations to be commissioned, not more than thirty calendar days from the date of opening of envelopes with tenders.
      The authorized organisation shall send the draft agreement of construction of generating installations to be commissioned to the potential investor recognized as the successful tenderer for construction of generating installations to be commissioned, within fifteen calendar days of the date of summing up of the tender for construction of generating installations.
      The successful tenderer for construction of generating installations to be commissioned shall sign the said contract within ten working days of the date of receiving the draft contract for construction of generating installations to be commissioned.
      8. The tender for construction of generating installations to be commissioned shall be declared void if:
      1) there are less than two potential investors;
      2) the documents presented by all the potential investors do not comply with paragraph 6 of this article.
      If of the tender for construction of generating installations is declared as void, the authorized organisation body shall hold an additional tender.
      9. The authorized organisation shall conclude the contract for construction of generating installations to be commissioned with the successful tenderer, in which it shall determine the period for commissioning the generating installations and liability for non-fulfilment and/or incomplete fulfilment of obligations incumbent on the successful tenderer, within forty five calendar days of summing up of the tender for construction of generating installations to be commissioned.
      10. The system operator shall conclude a contract for purchase of services to maintain the electrical energy availability of the generating installations newly commissioned with the successful tenderer according to the price, volume and determined by the authorized organisation, within thirty calendar days from the date of conclusion of the contract for construction of generating installations to be commissioned.
      11. The contracts, provided for by paragraphs 9 and 10 of this article shall be concluded on the basis of standard form contracts.
      Footnote. Chapter 4 is supplemented by Article 15-1 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after its first official publication).

      Note by RCLI!
      Supplementation of Chapter 4 is provided for by Articles 15-2 & 15-3 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2015).

Article 16. Retail electrical energy market

      1. The procedure for accessing the retail electrical energy market shall be determined by the Government of the Republic of Kazakhstan.
      2. Regional electric grid companies transmit electrical energy through the electric networks in the range of its balance participation.
      3. (Paragraph excluded by Law of the Republic of Kazakhstan dated 11.04.2006 No. 136 (enforced from the date of its official publication).
      4. Guaranteeing electrical energy suppliers may not gain advantages in relation to other energy-producing organizations when carrying out economic activity.
      5. The procedure for determining the guarantying electrical energy supplier and its zone of responsibility shall be determined by the rules for organizing and operating the electrical energy market.
      Footnote. Article 16 as amended by the Laws of the Republic of Kazakhstan dated 11.04.2006 No. 136 (enforced from the date of its official publication); 27.07.2007 No. 316 (enforced from date of official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 05.07.2011 No. 452-IV (enforced from 13.10.2011).

Article 17. Contracts on wholesale electrical energy market

      Note by RCLI!
      Amendment of Paragraph 1 is provided for by Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).

      1. The buying and selling of electrical energy, and provision of services in transmission of electrical energy, technical dispatching control, regulation of electrical capacity, production-consumption balancing of electrical energy, and organizing and operating centralized electrical energy bids on the wholesale electrical energy market, shall be carried out on the basis of contracts concluded in accordance with the Civil code of the Republic of Kazakhstan, this Law and other normative legal acts of the Republic of Kazakhstan.
      2. The buy and sell contracts for electrical energy shall include:
      1) daily schedule of electrical consumption;
      2) procedure for reservation of electrical capacity by energy-producing organizations.
      Note by RCLI!
      Paragraph 3 is provided for in the wording of Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (enforced from 01.01.2016).
      3. The buy-and-sell electrical energy contracts, contracts for provision of electrical energy transmission services, technical dispatching control, regulation of electrical capacity, and production-consumption balancing of electrical energy on the wholesale electrical energy market, shall include conditions and procedure for termination of energy delivery or provision of the relevant services in case of delayed payment under the contract.
      Footnote. Article 17 as amended by Law of the Republic of Kazakhstan dated April 11, 2006 No. 136 (enforced from the date of its official publication).

Article 18. Contracts on retail electric and heat energy market

      1. Electrical and heat energy shall be bought and sold on the retail market on the basis of an energy delivery agreement concluded by the consumers with the energy-supplying organizations.
      The energy-supplying organizations may not refuse the sale (trading) of electrical energy to consumers according to tariffs differentiated by time zones of days and/or depending on volumes (for individuals) of consumable energy.
      The energy-supplying organizations may not refuse the sales of heat energy to the consumers according to tariffs differentiated according to presence or absence of heat energy metering instruments.
      2. Contracts, concluded by energy-supplying and regional transmission organizations on the retail market shall include equal conditions for all participants in the retail electric and heat energy market.
      3. Prices and conditions of supply of electrical energy from energy-supplying organizations shall be determined in accordance with the buy-and-sell agreement by mutual agreement of the parties in recognition of the regional transmission organization’s tariff.
      Payment for electrical energy consumed by consumers shall be made through billing documents issued by the energy-supplying organizations on the basis of actual indices from metering instruments, and if these are absent or broken down, by calculation, with the exception of cases in which the automated commercial energy accounting system is used.
      4. Electrical energy shall be transmitted via the regional electric networks on the basis of contracts for provision of electrical energy transmission services concluded by the energy-supplying organization or consumer with the regional electric grid company, in the standard form determined by the Government of the Republic of Kazakhstan.
      5. The energy supply contract between guaranteeing suppliers and consumers of electrical energy shall be public.
      Footnote. Article 18 as amended by the Laws of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); 13.01.2012 No. 542-IV (enforced from 01.07.2012); 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after first official publication).

Article 19. Rights and obligations of electrical and heat energy consumer

      1. Electric and heat energy consumers have the right to:
      1) Receive electrical and heat energy in accordance with concluded contracts;
      2) Issue claims against the energy-producing, regional transmission and energy-supplying organizations for compensation for damages caused by short-delivery or delivery of defective electric and heat energy, in accordance with the conditions of concluded contracts;
      3) Go to court for resolution of disputed issues connected with conclusion and fulfilment of the contracts;
      4) Pay for consumed electrical energy under load rate tariff accounting systems, determined by Kazakh legislation.
      2. Consumers of electric and heat energy are obliged to:
      1) maintain the good technical condition of electrical and energy installations and metering instruments owned by the consumers, and fulfil requirements concerning their technical condition in accordance with specifications for using electrical and heat energy;
      2) comply with energy regimes determined by the buy-and-sell agreements for electrical and heat energy;
      3) fulfil regulatory requirements aimed at maintaining the standard frequency of electrical energy in the single electric power system of the Republic of Kazakhstan;
      4) pay in good time for electrical and/or heat energy supplied, transferred and consumed according to concluded contracts;
      5) allow access to the metering instruments by the energy-supplying and regional transmission organizations and by employees of the state body on state energy control for carrying out of technical control and safety checks on operation of electric and energy installations;
      6) (Excluded by Law of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009).
      3. Electrical energy consumers who are legal entities acquiring electrical energy from the energy-supplying organizations are obliged to pay for consumed electrical energy under tariffs differentiated according to time zones.
      Footnote. Article 19 as amended by the Laws of the Republic of Kazakhstan dated 31.01.2006 No. 125; 11.04.2006 No. 136 (enforced from date of official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009); 06.01.2011 No. 378-IV (enforced upon expiry of ten calendar days after its first official publication).

Chapter 5. Management of electric power industry facilities during disruptions to the single electric power system of the Republic of Kazakhstan

Article 20. Measures taken to prevent and elimination of disruptions

      1. Excluded by Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (be enforced from 13.10.2011).
      2. To eliminate system emergencies, the system operator shall attract power reserves from all energy-producing organizations, regardless of form of ownership, and autonomous consumer power supply sources.
      3. In a shortage of capacity for elimination of disturbances, the system operator has the right to amend confirmed cost schedule of water through the hydro systems for use of emergency reserve of hydroelectric stations, on an operational basis.
      4. When an imbalance occurs that is not settled by the balancing electrical energy market in order to maintain a normative electrical frequency in the single electric power system of the Republic of Kazakhstan, the system operator has the right to carry out buy and sell of electrical energy.
      Footnote. Article 20 as amended by Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (enforced from 13.10.2011).

Article 21. Energy delivery on emergency reservation

      1. When a system emergency arises, energy delivery to consumers shall be made according to schedules, developed by the regional transmission organizations, securing supply of emergency reservation electrical capacity for organizing the economic infrastructure, where technological reasons require uninterrupted energy delivery which, it stopped, will endanger to the lives of people or lead to catastrophic environmental, social or economic consequences.
      2. The procedure and conditions of energy delivery to consumers with emergency reservation shall be determined by the Government of the Republic of Kazakhstan.
      3. Public institutions, supported by budget funds shall beprovided with emergency reservation within the funds provided for State institutions’ electrical energy costs on consumption of electrical energy, subject to provision of the relevant bank guarantee compiled as prescribed by the legislation of the Republic of Kazakhstan for State institutions and other organizations.

Article 22. Securing of protection and integration of electricity generation facilities

      1. The most important electricity generation facilities shall be protected by special paramilitary security services or subdivisions of the Ministry of Internal Affairs of the Republic of Kazakhstan. The lists of these facilities shall be determined by the Government of the Republic of Kazakhstan.
      2. Guidance on protection of electric and heat networks and fulfilment of works in protected zones of electricity and heat networks shall be confirmed by the Government of the Republic of Kazakhstan.
      3. The property of energy-producing and regional transmission organizations participating in the same procedure of production and transfer of electric and/or heat energy shall be indivisible.
      4. Buying and selling, and leasing or transfer to discretionary management of electricity generation facilities and/or parts thereof shall be carried out at preliminary agreement and coordination with the authorized organisation and the state organisation managing natural monopolies and on regulated markets, regardless of form of ownership.
      Footnote. Article 22 as amended by the Laws of the Republic of Kazakhstan dated April 11, 2006 No. 136 (enforced from the date of its official publication); 29.12.2008 No. 116-IV (enforced from 01.01.2009).

Article 23. Liability for a breach of legislation of the Republic of Kazakhstan concerning electrical power industry

      Persons, guilty of a breach of legislation of the Republic of Kazakhstan concerning electric power industry shall be liable as prescribed by the laws of the Republic of Kazakhstan.
      Note by RCLI!
      Article 24 provides for changes through Law of Republic of Kazakhstan dated 16.05.2014 No, 203-V (enforced on expiry of six months following date of first official publication).

Chapter 6. Final and transitional provisions

Article 24. The order of enforcement of this Law

      1. This Law enters into force from the date of its official publication, with the exception of:
      1) Paragraph 2 of article 13 and paragraph 4 of article 14, enforced from October 1, 2004;
      2) Paragraph 6 of article 13, enforced from January 1, 2008.
      2. The regulations determined by the sub-paragraph 4) of paragraph 1 and sub-paragraph 2) of paragraph 2) of article 10 shall be valid until December 31 2007.
      3. The Law of the Republic of Kazakhstan dated July 16, 1999 “Concerning the electric power industry” (Bulletin of the Parliament of the Republic of Kazakhstan, 1999, No. 20, article 729) shall be declared no longer in force.
      Footnote. Article 24 as amended by the Law of the Republic of Kazakhstan dated 11 April, 2006 No. 136 (shall be enforced from the date of its official publication).

Article 25. Final and transitional provisions

      1. The regional transmission organizations shall divide electrical and/or heat energy transfer from energy delivery activities until October 1, 2004.
      2. The regional electricity grid companies divide electrical energy activities from energy delivery activities according to establishment of organizations until October 1, 2004.
      3. The energy-producing organizations shall conclude agreements from May 1, 2009 as prescribed by this Law.
      4. The prohibition provided by paragraph 3-3 of article 13 of this Law shall not extend to cases of electrical energy sales by the energy-supplying organizations, supplying no more than 1 megawatt of average daily (basic) energy capacity until July 1, 2009.
      Note by RCLI!
      Paragraph 5 shall be valid until 01.01.2016 in accordance with Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V.
      5. Energy-producing organizations, that have not taken measures to conclude an agreement as provided for by paragraph 3-1 of article 12-1 of this Law and have not concluded an agreement with the authorized body shall sell electrical energy at a price that does not exceed electrical energy generation costs, excluding depreciation costs and income.
      Footnote. Article 25 as amended by the Laws of the Republic of Kazakhstan dated 29.12.2008 No. 116-IV (enforced from 01.01.2009); 04.07.2012 No. 25-V (enforced upon expiry of ten calendar days after its first official publication).

      The President
      of the Republic of Kazakhstan