ELECTRICITY LAW (No. 8)

This Law is aimed at assuring reliable, safe and uninterrupted supply of electricity and thermal energy and at improving the quality of service to all consumers, creating a competitive environment and energy market, encouraging development of the private sector and attracting investments. The Law consists of 33 Articles dealing with the following matters: objectives (art. 1); definitions (art. 2); separation of functions (art. 3); state regulation (art. 4); general provisions for licensing (art. 5); revocation, suspension or modification of the licence (art. 6); review of licences (art. 7); general licences (art. 8); new generation capacities (art. 9); hydropower stations (art. 10); nuclear plants (art. 11); power generation for proper needs (art. 12); maintenance and operation of the national grid (art. 13); obligation of distributors (art. 14); electricity supply contract (art. 15); compliance with the operational requirements (art. 16); interruption of services (art. 17); electricity trade (art. 18); call for tenders (art. 19); tender procedure (art. 20); tariffs (art. 21); provision of service for low income consumers (art. 22); metering, billing and collection (art. 23); offences and penalties (art. 24); periodicity of tariff revision (art. 25); accounting standards (art. 26); separation of accounts (art. 27); environmental protection (art. 28); environmental impact assessment (art. 29); disasters (art. 30); liability (art. 31); dispute settlement (art. 32); coming into effect (art. 33). State regulation of the electricity sector shall be carried out to provide electricity and thermal energy at economically justified, socially affordable and non-discriminatory prices, as well as to control for the provision of reliable, safe and uninterrupted generation and consumption of electricity and thermal energy. Generation, transmission, distribution or sale of electricity or thermal energy shall be licensed. Issuance of licences shall be charged. No generation licence shall be required for any legal entity or individual entrepreneur generating electricity for their own use. For capacity of 1000 kW or more, they must obtain permissions from the State Energy Agency and local authorities. Legal entities or natural persons generating electricity for their own needs are forbidden to connect to the National Grid and to sell electricity to third parties without the appropriate authorization. Licence holders should bear the cost of preventing or mitigating pollution originating from their operations. The decision to site a new power plant or hydro-electric station shall be subject to an environmental impact assessment prior to the issuance of a construction permit. In case of an emergency or natural disaster limitations on the use of electricity may be imposed.