Article 1. The basic concepts used in this Law of the Law on Electric Power Industry

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The following basic concepts are used in this Law:

1) emergency reservation – the minimum consumption of electric energy (minimum power consumption) of consumer facilities with a completely stopped technological process, ensuring their safe condition for life, human health and the environment, as well as the functioning of current collectors for emergency and security lighting systems, security and fire alarm systems, fire extinguishing pumps, drainage systems, cooling of the main technological equipment, communication and emergency ventilation;

2) emergency violation - unacceptable deviations of the technological parameters of the electrical installation or its elements, which caused their decommissioning or damage during operation;

 2-1) the "Accident" mode is a measure introduced by the system operator to maintain the stable operation of the unified electric power system of Kazakhstan or its individual parts;

2-2) readiness passport – an annually issued document confirming the readiness of energy-producing and energy-transmitting organizations to work in the autumn-winter period;

2-3) single buyer is a legal entity designated by an authorized body that carries out the centralized purchase of services to maintain the availability of electric power and the centralized provision of services to ensure the readiness of electric power to carry the load in accordance with the procedure provided for by this Law.;

2-4) a generating unit is a device that generates electrical energy;

2-5) a generating unit with a maneuverable generation mode is a generating unit with adjustable electrical power;

2-6) auction bidding for the construction of newly commissioned maneuverable generation units (hereinafter referred to as auction bidding) is a process organized and conducted by the auction organizer in an electronic system based on an auction aimed at selecting projects for the construction of newly commissioned maneuverable generation units and determining their individual tariffs for a service for maintaining the availability of electrical power;

2-7) an auction participant for the construction of newly commissioned generation units with a maneuverable generation mode (hereinafter referred to as the auction participant) is a legal entity that has been registered in the electronic system of the auction organizer and has received the status of a participant;

2-8) the organizer of auctions for the construction of newly commissioned generation plants with a maneuverable generation mode (hereinafter referred to as the organizer of auctions) is a legal entity, more than fifty percent of the shares (shares in the authorized capital) of which belong to the state and its affiliated persons, determined by the authorized body, carrying out in accordance with the procedure provided for by this Law, organizing and conducting auctions;

2-9) individual tariff for the service of maintaining the availability of electric power during the construction of newly commissioned generation plants with a maneuverable generation mode – the tariff determined based on the results of auctions;

2-10) the planned balance of generation and consumption is the difference between the values of production and consumption of electric energy (for one hour of the operating day) of the entity balancing the electric energy market, approved by the system operator in the hourly daily schedule of production and consumption of electric energy, in kWh;

2-11) is excluded by the Law of the Republic of Kazakhstan dated 04/19/2023 No. 223-VII (effective from 07/01/2023).

2-12) the actual balance of generation and consumption is the difference between the actual values of production and consumption of electric energy (for one hour of an operational day) of the entity balancing the electric energy market in kW.tsch;

2-13) hybrid group – a group of subjects of the wholesale electric energy market with an aggregate share of the use of renewable energy sources in the production of electric energy of at least twenty-five percent located in one energy hub and included in the list of hybrid groups in accordance with the procedure approved by the authorized body;

 2-14) the administrator of a hybrid group is a legal entity belonging to a hybrid group that purchases (purchases) electric energy from energy–producing organizations belonging to the hybrid group for the purpose of its subsequent sale to consumers within this hybrid group and (or) on the balancing electricity market, as well as being a balance provider for energy producers organizations and consumers of electric energy included in the hybrid group;

2-15) consumer of a hybrid group is a consumer who is a subject of the wholesale electric energy market and is included in the list of hybrid groups.;

2-16) dispatching technological control is a process carried out by a dispatcher and designed to solve the tasks of monitoring and controlling the functioning of electrical networks through automated dispatching and technological control systems, as well as receiving and processing messages from individuals and legal entities about the prerequisites for the occurrence or occurrence of technological violations requiring response measures and elimination of failures and damages.;

2-17) individual tariff for the service of maintaining the availability of electric capacity of newly commissioned energy-producing organizations – the tariff determined based on the results of a tender conducted by the authorized body for the construction of generating units being put back into operation, including the return of the amount of capital expenditures and remuneration for the relevant loans raised for the project, and the rate of return on invested capital, subject to annual indexation, to the inflation rate determined according to the data of the authorized body in in the field of state statistics, or annual indexation taking into account changes in the exchange rate of the national currency to foreign currencies, determined according to the data of the National Bank of the Republic of Kazakhstan;

 4-1) green tariff – the tariff for the sale by a single buyer of electric energy generated by facilities for the use of renewable energy sources, established by a single buyer of electric energy in accordance with the rules for determining the tariff for the support of renewable energy sources approved by the authorized body;

4-2) consumer of green energy – a subject of the wholesale electric energy market that purchases from a single buyer of electric energy electric energy generated by facilities for the use of renewable energy sources at green tariffs determined in accordance with this Law;

5) system accident - an emergency violation of the operating modes of electric power facilities, which led to the loss of stability of the unified electric power system of the Republic of Kazakhstan and its division into parts;

6) system services – services provided by the system operator in accordance with this Law;

7) system operator is a national company that carries out centralized operational dispatch management, ensures parallel operation with the power systems of other states, maintains balance in the unified electric power system of the Republic of Kazakhstan, provides system services and purchases auxiliary services from subjects of the wholesale electric energy market, as well as maintenance and maintenance of the national electric grid and ensures its development;

7-1) system and auxiliary services market – a system of relationships between the system operator and subjects of the wholesale electric energy market related to the provision of system and auxiliary services;

8) excluded by the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective sixty calendar days after the date of its first official publication). 8-1) is excluded by the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective sixty calendar days after the date of its first official publication). 9) excluded by the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective sixty calendar days after the date of its first official publication). 10) excluded by the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective sixty calendar days after the date of its first official publication).

11) investment program - a program aimed at the creation of new assets, expansion, renovation, reconstruction and technical re-equipment of existing assets;

11-1) investment tariff – an hourly tariff for the purchase of electric energy from a single buyer of electric energy to cover investment obligations under investment projects, the implementation of which began before July 1, 2023, determined in accordance with the procedure provided for by this Law;

12) excluded by the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (effective from 01.01.2020);

13) excluded by the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (effective from 01.01.2020);

14) excluded by the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (effective from 01.01.2020);

15) commercial metering device - a technical device designed for commercial metering of electric power, electric energy, approved for use in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

15-1) excluded by the Law of the Republic of Kazakhstan dated December 26, 2019 No. 284-VI (effective ten calendar days after the date of its first official publication);

15-2) the buyer of electric energy on the wholesale market is a legal entity that purchases electric energy for the purpose of electricity supply or consumption, as well as to cover regulatory and technical losses.;

15-3) the autumn-winter period is the heating season, the beginning and end of which are established by local executive bodies.;

16) unified electric power system of the Republic of Kazakhstan - a set of electric power stations, transmission lines and substations providing reliable and high-quality energy supply to consumers of the Republic of Kazakhstan;

17) the reserve of electric power of the unified electric power system of the Republic of Kazakhstan is the electric power of units of energy-producing organizations having the required structure, size, and degree of readiness for dispatching that meet the requirements stipulated by the contract.;

18) auxiliary services - services purchased by the system operator from subjects of the wholesale electric energy market to ensure the necessary volumes and structure of regulating reserves of electric power, regulation of active and reactive capacities, and the launch of the power system from a de-energized state;

18-1) state technical inspector - an official of the authorized body exercising state control over compliance with the requirements of the legislation of the Republic of Kazakhstan on the electric power industry;

18-2) the Market Council is a non–profit organization engaged in monitoring the functioning of the electric energy and capacity market, as well as other functions provided for by this Law.;

19) operational day - the current day during which the system operator carries out operations for centralized operational dispatch management of the execution of contracts for the purchase and sale of electric energy concluded by subjects of the wholesale electric energy market;

20) centralized operational dispatch management is a process of continuous management by a system operator of technically coordinated work of energy producing, energy transmitting, energy supplying organizations and consumers of electric energy, ensuring the regulatory level of reliability of the unified electric power system of the Republic of Kazakhstan and compliance with the regulatory quality of electric energy;

20-1) centralized trading market operator - an organization that carries out centralized trading of electric energy, including spot trading of electric energy, and a service for maintaining the availability of electric power;

20-2) positive imbalance is an imbalance whose value is greater than zero (not negative), in kW.tsch;

20-3) operational day – a calendar day starting at 00.00 and ending at 24.00 hours of Central European time, during which the implementation of the daily schedule of production and consumption of electric energy is carried out.;

20-4) the unified state management system for the fuel and energy complex (hereinafter referred to as the information system of the authorized body) is the information system of the authorized body in the field of electric power industry for monitoring and interaction with subjects of the electric power industry;

21) interregional and (or) interstate power transmission lines - power transmission lines with a voltage of 220 kilovolts and higher, providing the transmission of electric energy between regions and (or) states;

22) regional electric grid company – an energy transmission organization having a direct technological connection with an energy producing organization and (or) a national electric grid, owning cable or overhead power transmission lines of at least four voltage classes (220, 110, 35, 20, 10 (6), 0,4 kilovolt), which operates regional-level electric networks and has at least 10,000 connected consumers;

22-1) fuel operating reserve rate - the minimum operating fuel reserve of energy-producing organizations in daily terms;

22-2) adjusting electrical power – the range (proportion) of available electrical power within which an electric station is capable of operating with specified parameters;

22-3) expert organization – a legal entity engaged in energy expertise activities in accordance with the legislation of the Republic of Kazakhstan;

22-4) balance sheet provider is a subject of the wholesale electric energy market that has assumed responsibility for the financial settlement of its own imbalances in the balancing electric energy market and the imbalances of other subjects of the balancing electric energy market in accordance with contracts concluded with them, included in the list of balance sheet providers formed by the balancing market settlement center.;

22-5) a balancing market settlement center is an organization designated by an authorized body that carries out centralized purchase and sale of balancing electricity and negative imbalances in the balancing electricity market in accordance with the procedure and terms provided for by this Law.;

23) balancing electricity – electric energy intended to cover positive imbalances in the implementation by the system operator of the approved hourly daily schedule of production and consumption of electric energy;

23-1) the marginal tariff for balancing electricity is the maximum allowed price for the subjects of the balancing electricity market for the sale of balancing electricity to the settlement center of the balancing market, determined in accordance with the procedure provided for by this Law.;

23-2) imbalance – the difference between the planned and actual balance of generation and consumption in kW.tsch;

23-3) negative imbalance is an imbalance whose value is less than zero (negative), in kW.tsch;

23-4) the marginal tariff for negative imbalances is the maximum price allowed for subjects of the balancing electricity market to purchase negative imbalances from the settlement center of the balancing market, determined in accordance with the procedure provided for by this Law.;

24) technical dispatching is a service provided by a system operator for the implementation of centralized operational dispatch control of modes of production and consumption of electric energy in the unified electric power system of the Republic of Kazakhstan;

24-1) technological reservation – the minimum consumption of electrical energy (minimum power consumption) and the length of time required to complete a continuous technological process and prevent danger to human life and the environment.;

24-2) technological disruption – failure or damage to equipment, electric power plants and networks, including as a result of fire or explosions, deviations from established modes, unauthorized shutdown or limitation of equipment's operability or its malfunction, which led to disruption of the process of production, transmission, consumption of electric and (or) thermal energy;

24-3) Excluded by the Law of the Republic of Kazakhstan dated 03.01.2022 No. 101-VII (effective sixty calendar days after the date of its first official publication).

24-4) the authorized body in the field of housing relations and housing and communal services is the central executive body responsible for the management of the electric power industry in terms of electricity consumption and methodological support in this industry.;

24-5) a household consumer is an individual who uses electric energy for his own household needs, not related to the production (sale) of goods, works and the provision of services.;

25) consumer - a natural or legal person who consumes electric energy on the basis of a contract;

26) authorized body - the state body exercising management in the field of electric power industry:

26-1) excluded by the Law of the Republic of Kazakhstan dated July 11, 2017 No. 89-VI (effective ten calendar days after the date of its first official publication);

27) national electric grid – a set of substations, switchgear, inter-regional and (or) interstate power transmission lines and transmission lines delivering electric energy to electric stations with a voltage of 220 kilovolts and above, which are not subject to privatization and are transferred to a national company in accordance with the procedure and on the terms determined by the Government of the Republic of Kazakhstan;

27-1) electric energy transmission service via the national electric grid is a service provided by a system operator to subjects of the wholesale electric energy market and organizations of other states in accordance with the procedure established by this Law.;

27-2) service for the use of the national electric grid is a service for providing maintenance and maintenance of the national electric grid related to the transmission of electric energy in accordance with the legislation of the Republic of Kazakhstan on natural monopolies, provided by the system operator to subjects of the wholesale electric energy market in accordance with the procedure established by this Law.;

27-3) conditional consumer is a wholesale consumer who purchases electrical energy from energy–producing organizations that are part of the same group of persons, an industrial complex and a qualified consumer, defined in accordance with the Law of the Republic of Kazakhstan "On Support for the Use of Renewable Energy Sources";

28) excluded by the Law of the Republic of Kazakhstan dated 07/04/2012 No. 25-V (effective from 01.01.2019); 29) excluded by the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective sixty calendar days after the date of its first official publication).

29-1) electric networks – a set of substations, switchgears and power transmission lines connecting them, intended for the transmission of electric energy;

30) security zone of electric networks - land plots, water and air space allocated for the purpose of ensuring the safety of electric networks, creating normal operating conditions, preventing their damage, as well as accidents among the population trapped in the security zone of these networks;

30-1) electric charging station – an electrical installation designed for charging mechanical vehicles equipped with electric motors;

31) electric power regulation service – a service provided to a system operator, energy transmission, energy supply organizations and consumers who are subjects of the wholesale electric energy market to compensate for deviations of the actual electric load of subjects of the wholesale electric energy market from the declared electric load;

31-1) electric capacity availability service – a service provided by energy-producing organizations to a single buyer to maintain the readiness of duly certified electric capacity of generating plants to carry the load;

31-2) the marginal tariff for the service of maintaining the availability of electrical power – approved by the authorized body for a period of seven years, the maximum value of the tariff (price) for the service for maintaining the availability of electric power for all existing energy-producing organizations (with the exception of the volume of services for maintaining the availability of electric power, in the provision of which the existing energy-producing organizations and the winners of the tender for the construction of generating plants, newly commissioned, as well as the auction winners use an individual tariff for the service to maintain the availability of electric power, established by the authorized body);

31-3) excluded by the Law of the Republic of Kazakhstan dated 12.11.2015 No. 394-V (effective after ten calendar days after the date of its first official publication);

31-4) individual tariff for maintenance of electric capacity availability – the tariff determined on the basis of the concluded investment agreement between the authorized body and the energy producing organization for modernization, expansion, reconstruction and (or) renewal of generating installations;

31-5) service for ensuring the readiness of electric power to bear the load – a service provided by a single buyer to ensure the readiness of duly certified electric power generating units in the unified electric power system of the Republic of Kazakhstan to bear the load;

31-6) electric power market – a system of relationships between subjects of the wholesale electric energy market related to the maintenance by energy-producing organizations of generating equipment in a state of readiness for electric power generation, renovation, support, reconstruction and technical re-equipment of existing production assets, as well as their creation;

31-7) is excluded by the Law of the Republic of Kazakhstan dated 12.11.2015 No. 394-V (effective after ten calendar days after the date of its first official publication);

31-8) centralized bidding of electric capacity is a process aimed at concluding contracts for the provision of services to maintain the availability of electric capacity between energy–producing organizations and a single buyer in an electronic trading system;

31-9) list of power plants – an approved list of energy-producing organizations that meet the criteria established by this Law;

32) electric power industry - the sphere of production, transmission, supply and consumption of electric energy;

32-1) a single buyer of electric energy is a legal entity with one hundred percent state participation, determined by an authorized body, which carries out centralized purchase and centralized sale of planned volumes of electric energy in accordance with the procedure provided for by this Law.;

 32-2) net consumer of electric energy (hereinafter referred to as the net consumer) – an individual or legal entity that provides fully or partially its own consumption of electric energy and (or) thermal energy from a small-scale facility for the use of renewable energy sources, owned by it by right of ownership or other proprietary right, connected to an electric distribution network and equipped with systems for separate accounting of electric energy consumption from the network and supply volumes to it, including combined installations of renewable energy sources;

32-3) commercial accounting of electric energy – accounting of electric energy necessary for mutual settlement between the parties under contracts of transmission of electric energy, as well as under contracts of electric supply;

33) subjects of the wholesale electric energy market – energy-producing, energy-transmitting, energy-supplying organizations, energy-producing organizations using renewable energy sources, energy-producing organizations using secondary energy resources, energy-producing organizations using energy waste management, electric energy consumers, digital miners and administrators of hybrid groups included in the list of subjects of the wholesale electric energy market formed by the system operator, as well as the system operator, the operator of the centralized trading market and the single buyer of electric energy;

33-1) marginal tariff for electric energy is a monetary expression of the cost of generated electric energy by an energy–producing organization included in a group of energy-producing organizations that sell electric energy, approved by the authorized body every seven years, consisting of the cost of producing electric energy and the profit margin determined according to the methodology established by the authorized body.;

IZPI's note! Subparagraph 34) is provided for in the wording of the Law of the Republic of Kazakhstan dated 07/08/2024 No. 121-VIII (effective from 01.01.2025).

34) guaranteeing supplier of electric energy is an energy supply organization that provides energy to consumers in cases of termination of energy supply to consumers by all other energy supply organizations through no fault of the consumer.;

35) transmission of electric energy – technologically related actions aimed at transmission and (or) distribution of electric energy through electric networks;

35-1) automated commercial electric energy metering system - a set of measuring instruments and a hardware and software package for measuring, collecting, processing, storing and transmitting electric energy metering data;

36) the daily schedule of production and consumption of electric energy is a document approved by the system operator regulating the hourly values of production and consumption of electric energy for each calendar day in accordance with contracts for the purchase and sale of electric energy concluded by wholesale market participants in the markets of decentralized purchase and sale of electric energy and centralized trade in electric energy;

37) balancing the production and consumption of electric energy is a service provided by a system operator for organizing the functioning of a balancing electric energy market;

37-1) a group of energy–producing organizations that sell electric energy is a set of energy-producing organizations formed according to the criteria: type of energy-producing organizations, installed capacity, type of fuel used, distance from the location of the fuel, location in one part of the unified electric power system of the Republic of Kazakhstan, in which there are no technical restrictions on the transmission of electric energy;

38) the retail electric energy market is a system of relationships functioning on the basis of power supply contracts between energy supply organizations included in the list of subjects of the wholesale electric energy market formed by the system operator and subjects of the retail electric energy market;

39) subjects of the retail electric energy market – consumers of electric energy and energy transmission organizations that are not included in the list of subjects of the wholesale electric energy market formed by the system operator;

39-1) the wholesale electric energy and capacity market is a system of relationships between subjects of the wholesale electric energy market, consisting of the wholesale electric energy market, the balancing electric energy market, the electric power market and the market of system and auxiliary services;

40) wholesale electric energy market – a system of relations related to the purchase and sale of planned volumes of electric energy, operating on the basis of contracts for the purchase and sale of electric energy between subjects of the wholesale electric energy market;

41) centralized trade in electric energy – transactions for the purchase and sale of electric energy carried out between energy-producing organizations and a single buyer, as well as between a single buyer and digital miners in an electronic trading system in accordance with this Law;

42) excluded by the Law of the Republic of Kazakhstan dated 12.11.2015 No. 394-V (effective from 01.01.2019);

43) spot trading of electric energy (hereinafter referred to as spot trading) is organized trading of hourly volumes of electric energy on a short-term basis in the following modes: one day in advance and during the operational day;

44) balancing electric energy market – a system of relationships between subjects of the balancing electric energy market and the settlement center of the balancing market resulting from the physical settlement of electricity imbalances in the unified electric power system of the Republic of Kazakhstan by the system operator and related to the purchase and sale of balancing electricity and negative imbalances;

45) the simulation mode of the balancing electric energy market (hereinafter referred to as the simulation mode) is the functioning of the balancing electric energy market without financial regulation of electric energy imbalances;

46) subjects of the balancing electric energy market – subjects of the wholesale electric energy market;

47) energy expertise – an examination conducted in the field of electric power industry for compliance with regulatory legal acts of the Republic of Kazakhstan on existing facilities, projects of reconstructed, modernized and newly built facilities in the field of electric power industry, as well as during the investigation of technological violations and industrial injuries in accordance with the rules approved by the authorized body;

48) energy transmission organization – an organization that provides services for the transmission of electric energy on the basis of contracts;

49) energy supply organization - an organization that sells purchased electric energy to consumers;

50) energy producing organization – an organization engaged in the production of electric and (or) thermal energy for its own needs and (or) sale, with the exception of net consumers who are such in accordance with the legislation of the Republic of Kazakhstan in the field of support for the use of renewable energy sources;

51) excluded by the Law of the Republic of Kazakhstan dated 04.07.2012 No. 25-V (effective from 01.01.2019).

52) the selling price of electric energy from an energy–producing organization is the selling price of electric energy to an energy-producing organization included in the relevant group of energy-producing organizations that sell electric energy, not exceeding its marginal tariff for electric energy multiplied by the corresponding hourly rates determined in accordance with the procedure established by the authorized body.

The Law of the Republic of Kazakhstan dated July 9, 2004 No. 588.

This Law regulates public relations arising in the process of production, transmission and consumption of electric energy.

President

Republic of Kazakhstan

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