Law No. 327-VIII “On the Introduction of New Investment Opportunities, Guarantees of the Rights and Legal Interests of Business Entities for Large-Scale Energy Modernization.”

This Law establishes the legal and economic basis for implementing energy services to improve the energy efficiency of state and municipal property facilities. This Law shall be applied to all customers participating in the energy service procurement, regardless of the procurement item cost. The essential terms of the energy service agreement include the following: (a) the subject matter of the energy service agreement including the list of measures, terms and conditions for the energy service supply; (b) energy service agreement price; (c) basic level of consumption of fuel and energy resources and housing and utility services in physical terms and in the monetary form at prices (tariffs) as of the date of announcement of the procurement procedure; (d) the level of reduction in consumption and/or expenses for corresponding fuel and energy resources and/or housing and utility services to be achieved as a result of the energy service supply for each year of validity of the energy service agreement; (e) the term of energy service agreement validity; (f) the obligation of the parties to the agreement to ensure, during the performance of the energy service agreement, the modes and conditions for the use of the fuel and energy resources and/or housing and utility services agreed by the parties; (g) liability for non-fulfilment or improper fulfilment of obligations under the energy service agreement; (h) terms and procedure for the termination of the energy service agreement; and (i) the procedure and methods for measuring (calculating) and verifying the actual level of reduction in consumption and/or expenses of the customer for fuel and energy resources and/or housing and utility services.