The Energy Law
The Energy Law regulates matters relating to energy generation, transmission, distribution, dispatching and supply activities, construction of energy facilities and energy consumption. The law is based on economic principles, market mechanisms and the rights and obligations of both the industry and the consumers. The law changes the operations and regulations of the energy sector.On the structural side, the law creates generation, transmission, dispatch, distribution and supply entities for the energy industry. On the regulatory side, it provides that each of these new entities will have to apply for licences for operation, and separately for electricity and district heating.The Law calls for the establishment of an Energy Regulatory Agency (ERA) that will be responsible for administering its provisions.
The amendment to the Energy Law adds a new regulation that sets energy prices and tariffs which account for power production costs and profit margins. The price and tariffs for electricity and heating production, and the amount of fuel supplied (for generation of heat and electricity) will be regulated. The amendment aims to increase private sector participation, business development and investments in the energy sector. The increased business interest and participation of private sector will result in the increased development of the energy sector.