Article 15-4. Investment agreements for modernization, expansion, reconstruction and/or renovation The Law on Electric Power Industry

Home / RLA / Article 15-4. Investment agreements for modernization, expansion, reconstruction and/or renovation The Law on Electric Power Industry

1. Investment agreements for modernization, expansion, reconstruction and (or) renewal are concluded in relation to the main generating equipment, as well as auxiliary equipment of existing (existing) electric power plants of existing energy-producing organizations.

Existing energy-producing organizations, one hundred percent of whose shares (shares in the authorized capital) belong to the state, and which are owned by the municipal authorities and simultaneously carry out activities for the production of electric, thermal energy and water (distillate), have the right to implement an investment agreement for modernization, expansion, reconstruction and (or) renewal with the creation of a separate legal entity with transfer of obligations to him under the concluded investment agreement for modernization, expansion, reconstruction and (or) renovation by concluding an additional agreement to the current investment agreement for modernization, expansion, reconstruction and (or) renovation between the authorized body, the specified energy producing organization and the legal entity.

The legal entity specified in part two of this paragraph means a legal entity affiliated with an operating energy-producing organization defined in accordance with part two of this paragraph.

The legislation in the field of electric power industry applied to energy-producing organizations that have concluded an investment agreement for modernization, expansion, reconstruction and (or) renewal with an authorized body applies to a legal entity to which, in accordance with part two of this paragraph, obligations under the concluded investment agreement for modernization, expansion, reconstruction and (or) renewal have been transferred.

1-1. The list and requirements for auxiliary equipment of existing (existing) electric power plants of existing energy-producing organizations in respect of which an investment agreement is concluded shall be established in accordance with the procedure established by the authorized body.

2. For the implementation of modernization, expansion, reconstruction and (or) renewal, existing energy-producing organizations develop appropriate investment programs, during the development of which an independent technical and financial audit is conducted.

3. The results of the technical and financial audit are: identification of the optimal scheme for modernization, expansion, reconstruction and (or) renovation, determination of the impact of the investment program on the service life of the main generating equipment, the expediency of the investment program and the required amount of financing for the investment program.

4. The results of the technical and financial audit and the investment program for modernization, expansion, reconstruction and/or renovation are subject to review by the Market Council.

5. Based on the recommendation of the market council, the authorized body decides to conclude (or refuse to conclude) an investment agreement for modernization, expansion, reconstruction and (or) renewal.

5-1. Energy producing organizations included in the Register by the authorized body are not entitled to conclude investment agreements with the authorized body for modernization, expansion, reconstruction and (or) renewal, with the exception of investment agreements concluded to provide electricity to consumers who purchase electric energy from a single buyer of electric energy.

6. The investment agreements for modernization, expansion, reconstruction and (or) renewal for each year set target indicators for the following indicators: the specific cost of conventional fuel for the supply of electric and (or) thermal energy; available electric capacity; the service life of the main generating equipment; the degree of wear of the main generating equipment; environmental indicators.

7. After the authorized body concludes an investment agreement for modernization, expansion, reconstruction and (or) renewal with an existing energy-producing organization, a single buyer enters into a contract for the purchase of electric power availability services with this energy-producing organization at an individual tariff for electric power availability services in the amount and for the time period determined by the authorized body.

The electric capacity of generating units put into operation under an investment agreement for modernization, expansion, reconstruction and (or) renewal is subject to annual certification by the system operator from the date of their commissioning.

If, as a result of the next certification of electric capacity, the value of the certified electric capacity of generating units put into operation under the investment agreement for modernization, expansion, reconstruction and (or) renewal turns out to be less than the volume of services for maintaining the availability of electric capacity specified in the contract for the purchase of services for maintaining the availability of electric capacity, the volume of services for maintaining the availability of electrical power, The amount specified in the contract for the purchase of services for maintaining the availability of electrical power is reduced to the certified value until the next certification is carried out.

8. Existing energy producing organizations that have concluded investment agreements for modernization, expansion, reconstruction and (or) renewal with the authorized body are required to submit to the authorized body annually, no later than March 31 of the year following the reporting year, a report on the achievement of the indicators (indicators) established in these agreements, confirmed by an independent energy expertise.

In case of failure to achieve the target indicators set out in the investment agreement for modernization, expansion, reconstruction and (or) updating, the authorized body has the right to terminate this agreement or change the individual tariff for the service for maintaining the availability of electric power, the volume and timing of the purchase of the service for maintaining the availability of electric power with notification to the system operator.

9. Energy-producing organizations that have concluded agreements with the authorized body and implemented large-scale investment programs from 2009 to 2015 during the period of the marginal electricity tariff program, the source of which, in addition to the investment component of the marginal tariff, was significant additional external financing (loans, loans), as well as loans (loans), other money received for for the purposes of refinancing and repayment of the principal debt of previously attracted obligations for projects included in development programs, approved by local executive bodies, conclude individual investment agreements with the authorized body for modernization, expansion, reconstruction and (or) renovation in a simplified manner.

9-1. Energy-producing organizations whose power plants were put into operation from 2009 to 2015, for the construction of which borrowed financing (loans, loans) was attracted until 2015, as well as loans (loans), other money received for the purpose of refinancing and repayment of the principal debt of previously attracted obligations for the purpose of financing the construction of a power plant, and concluded with the authorized body and the state body responsible for the management of natural monopolies, investment agreements, conclude individual investment agreements with the authorized body on commissioned power plants in a simplified manner.

10. Admission to review, review and selection of investment programs for modernization, expansion, reconstruction and (or) renewal, conclusion of investment agreements for modernization, expansion, reconstruction and (or) renewal, the corresponding conclusion of an agreement on the purchase of services to maintain the availability of electric power and the establishment of individual tariffs for this agreement for services to maintain the availability of electric power the volumes and terms of purchase of services for maintaining the availability of electric power are carried out 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.

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Republic of Kazakhstan

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