LAW ON ENERGY (No. 08-2828/1)

This Law regulates the founding and operation of a Regulatory Commission on Energy, sets forth terms and conditions for the operation in energy sector, protection of energy facilities, devices and plants, environment and nature against the harmful effects caused by the operation thereof, and establishes supervision in the energy sector. The Law shall be applicable to: (a) electric power generation, transmission, and distribution; (b) production and processing of coal; (c) production, treatment, and transportation of oil and oil derivatives; (d) production, transportation, and distribution of natural gas; (e) generation, transportation, and distribution of heat and geothermal energy; (f) generation of other types of energy; (g) transit of energy and energy supplies; and (h) trade with energy and energy supplies. The Law consists of 11 Articles dealing with the following matters: general provisions (art. 1); sphere of application (art. 2); licensing terms and conditions (art. 3); activities of public utility (art. 4); public enterprises (art. 5); hydropower generation (art. 6); coal extraction and mining (art. 7); oil and natural gas production, processing and transportation (art. 8); generation, transmission and distribution of heat and geothermal energy (art. 9); generation of renewable energy and energy from alternative sources (art. 10); suppliers and users of energy (art. 11). The activities covered by this Law can be performed by local and foreign legal and physical entities in conformity with licence. For carrying out activities of common interest (electric power generation, transportation, and distribution, production, transportation, and distribution of natural gas and production, transmission and distribution of heat and geothermal energy, except for internal use) , public enterprises may be established by the Government.