Senate approves a new version of the law “On Electric Energy”

Today, on July 10, during the fifty-fourth plenary session of the Senate, senators discussed and approved the revised Law "On Electric Power," according to the Senate's press service.

The current law, enacted in 2009, does not address the wholesale and retail electricity markets, lacks mechanisms to support competition, and does not ensure reliable, safe, stable, and low-cost electricity supply. It also fails to establish guarantees for protecting consumer interests in terms of quality.

“The new version of the Law on Electricity aims to protect consumer interests regarding prices, reliable electricity supply, and service quality. It supports the creation and development of an efficient, transparent, and competitive electricity market, free from significant barriers,” the report stated.

The law outlines the structure and general rules for the effective operation of the electric energy network, encouraging a competitive environment and attracting private investments.

"Fair competition, equality and accountability, openness and transparency, and the priority of electric energy security are defined as the main principles of the industry in the law. A new article outlining the goals of the electric energy industry has also been introduced," the report states.

Moreover, the law sets out general regulations for the activities of traders (both individuals and legal entities) in the electricity market, outlining their rights and responsibilities.

According to the senators, the law's adoption will attract private investments, enhance the efficiency of the electric power industry, clarify the rights and responsibilities of electric power companies, and promote the generation of electricity from renewable energy sources.

The senators also reviewed and approved the law titled "On Energy Conservation, Rational Use, and Improvement of Energy Efficiency."

“The law outlines tasks and regulations to ensure energy security, promote energy saving, and increase efficiency. It establishes principles for the rational use of resources and the efficient use of electric and thermal energy, fuel, and alternative energy sources in both economic sectors and the social sphere,” the report stated.  

The law also proposes to establish penalties for violations of energy conservation and efficiency standards and for excessive resource consumption.

The law envisions measures for energy saving and efficiency improvements in various sectors, including construction and transport, buildings and structures, heat supply and utility companies, agriculture, and water management.