Article 15-8. The procedure for organizing and conducting auctions The Law on Electric Power Industry

Home / RLA / Article 15-8. The procedure for organizing and conducting auctions The Law on Electric Power Industry

1. In the case specified in paragraph 9 of Article 15-1 of this Law, the authorized body shall take into account, in the plan for the placement of generating units with a maneuverable generation mode, the volume of capacity being commissioned, including to cover the projected shortage of regulating electric power, and the volume of regulating electric power that has been created or will be created by wholesale market entities included in the Register, in accordance with with the contract for the creation of electric power with the authorized body provided for in paragraph 11 of Article 15-5 of this Law.

2. In order to implement the plan for the placement of generating units with a maneuverable generation mode, the authorized body selects projects.

3. The selection of projects for the construction of newly commissioned generation plants with a maneuverable generation mode is carried out by organizing and conducting auctions among (sequentially in order of priority):

1) sites included in the plan for the placement of generating units with a maneuverable generation mode and having preliminary feasibility studies prepared by a single buyer commissioned by an authorized body on the basis of a technical specification developed by the system operator;

2) sites of existing energy-producing organizations;

3) sites that do not have preliminary feasibility studies.

At the same time, auctions are not held in respect of generating units that will be created by wholesale market entities included in the Register in accordance with the contract for the creation of regulatory electric capacity with the authorized body provided for in paragraph 11 of Article 15-5 of this Law.

4. Newly commissioned generation plants with maneuverable generation mode:

1) they are being created and put into operation after January 1, 2022 in the zone of the unified electric power system of the Republic of Kazakhstan, in which there is and (or) an uncovered shortage of regulating electric power is predicted;

2) they are connected to the automatic control of generating units;

3) have a range of regulation determined in accordance with subparagraph 70-41) of Article 5 of this Law.

During the construction of a generating unit with a maneuverable generation mode of the type of a counter-regulating hydroelectric power station, its operating mode is built in direct dependence on the operating mode of the existing hydroelectric power station located higher up the riverbed.

After the applicant receives the registration permit, the auction organizer registers the applicants in the electronic system.

To register in the electronic system of the auction organizer, the applicant applies to the official Internet resource of the auction organizer for online registration and submits the following documents to his address in electronic form:

1) a copy of the charter;

2) a copy of the certificate of state registration (re-registration) of a legal entity;

3) a copy of the decision of the relevant body of the legal entity on the appointment of the first head;

4) a power of attorney for a representative (if the representation of interests is not carried out by the first head);

5) information about the details of the legal entity (bank details, address, contact phone numbers, email address).

5. The organization and conduct of auctions in accordance with subparagraph 1 of the first part of paragraph 3 of this article shall be carried out in the following manner:

1) the auction documentation is developed on the basis of a preliminary feasibility study prepared by a single buyer in accordance with subparagraph 70-41) of Article 5 of this Law. The preliminary feasibility study should include the location, the point of connection to the national electric grid, the projected cost of the project, the projected individual tariff for the service to maintain the availability of electric power during the construction of newly commissioned generation units with a maneuverable generation mode, the purchase period of the service to maintain the availability of electric power, equal to fifteen years, the volume of services to maintain the availability of electrical power, the zone of shortage of regulated electric power in the unified electric power system of the Republic of Kazakhstan, the required technical, technological and operational characteristics of newly commissioned generation plants with a maneuverable generation mode;

2) the authorized body sends information to the local executive authorities of the regions, cities of republican significance and the capital about the need to reserve land for the construction of generating units with a maneuverable generation mode.;

3) local executive bodies of regions, cities of republican significance and the capital reserve the land plots defined in the preliminary feasibility study for the planned construction of newly commissioned generation plants with a maneuverable generation mode, until the winners of the auction are granted the rights to the land plot in accordance with Article 49-2 of the Land Code of the Republic of Kazakhstan and send relevant information to the authorized body;

4) the authorized body, no later than six months before the expected date of the auction, develops and publishes on its Internet resource the schedule of the auction;

5) an applicant for participation in an auction shall submit to the authorized body copies of the constituent documents and documents confirming the availability of financial resources determined by the authorized body in accordance with subparagraph 70-41) of Article 5 of this Law no later than thirty calendar days before the auction.;

6) the authorized body shall form a commission that, no later than fifteen calendar days before the auction, verifies the documents submitted by the applicant for availability and compliance with the requirements established by this paragraph.

If the documents submitted by the applicant comply with the requirements of this paragraph, the applicant receives access to registration in the electronic system of the auction organizer.;

7) the authorized body, after checking the documents by the commission, sends the information and the list of applicants who have received admission to registration to the auction organizer.

In the case of the construction of newly commissioned generation plants with a maneuverable generation mode, which will use commercial gas to generate electric energy, before the auction:

The central executive body responsible for state regulation of production, transportation (transportation), storage and wholesale sale of gas, as well as retail sale and consumption of commercial and liquefied petroleum gas, in coordination with the authorized body responsible for management in the relevant areas of natural monopolies, determines the volume and marginal prices of wholesale sales of commercial gas in accordance with Article 20. The Law of the Republic of Kazakhstan "On Gas and Gas supply";

Technical specifications are issued for connection to the main gas pipeline and (or) the gas distribution system in accordance with the Law of the Republic of Kazakhstan "On Gas and Gas Supply".

6. The organization and conduct of auctions in accordance with subparagraph 2) of the first paragraph of paragraph 3 of this Article shall be carried out in the following manner:

1) the auction documentation is developed in accordance with subparagraph 70-41) of Article 5 of this Law. The documentation must contain a projected 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, calculated based on preliminary feasibility studies of similar projects and (or) the results of auctions of similar projects in accordance with subparagraph 1) of the first part of paragraph 3 of this Article, after deducting the costs of infrastructure construction, the purchase period for maintaining the availability of electric power, equal to fifteen years, the volume of services for maintaining the availability of electric power, the zone of shortage of regulated electric power in the unified electric power system of the Republic of Kazakhstan;

2) an applicant for participation in an auction shall, no later than thirty calendar days in advance, submit to the authorized body copies of the constituent documents, documents confirming the availability of financial resources determined by the authorized body, in accordance with subparagraph 70-41) of Article 5 of this Law.;

3) operating energy-producing organizations must be located in the zone of the unified electric power system of the Republic of Kazakhstan for which the authorized body has announced the holding of auctions.;

4) existing energy-producing organizations, during the construction of newly commissioned generation plants with a maneuverable generation mode, are required to implement projects using hydrodynamic energy of water and (or) gas to generate electric energy.;

5) the authorized body shall form a commission that, no later than fifteen calendar days before the auction, verifies the documents submitted by the applicant for availability and compliance with the requirements established by this paragraph.

If the documents submitted by the applicant comply with the requirements of this paragraph, the applicant receives access to registration in the electronic system of the auction organizer.;

6) the authorized body, after checking the documents by the commission, sends the information and the list of applicants who have received admission to registration to the auction organizer.;

7) the authorized body, no later than six months before the expected date of the auction, develops and publishes on its Internet resource the schedule of the auction.

7. The organization and conduct of auctions in accordance with subparagraph 3) of the first paragraph of paragraph 3 of this Article shall be carried out in the following manner:

1) the auction documentation is developed in accordance with subparagraph 70-41) of Article 5 of this Law. The documentation must contain a projected 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, calculated based on preliminary feasibility studies of similar projects and (or) the results of auctions of similar projects in accordance with subparagraph 1) of the first part of paragraph 3 of this Article, the period of purchase of services for maintaining the availability of electric power, equal to fifteen years, the amount of services for maintaining the availability of electric power, the zone of shortage of regulated electric power in the unified electric power system of the Republic of Kazakhstan;

2) the applicant for participation in the auction shall submit copies of the constituent documents and documents confirming the availability of financial resources determined by the authorized body in accordance with subparagraph 70-41) of Article 5 of this Law to the authorized body no later than thirty calendar days in advance.;

3) the authorized body shall form a commission that, no later than fifteen calendar days before the auction, verifies the documents submitted by the applicant for availability and compliance with the requirements established by this paragraph.

If the documents submitted by the applicant comply with the requirements of this paragraph, the applicant receives access to registration in the electronic system of the auction organizer.;

4) the authorized body, after checking the documents by the commission, sends the information and the list of applicants who have received admission to registration to the auction organizer.;

5) the authorized body, no later than six months before the expected date of the auction, develops and publishes on its Internet resource the schedule of the auction.

8. Within fifteen calendar days from the date of summing up the auction results, the single buyer shall send to the winner of the auction a draft contract for the purchase of services for maintaining the availability of electric power.

The winner of the auction, within thirty calendar days from the date of receipt of the draft contract for the purchase of services for maintaining the availability of electric power, signs the specified contract for a period of fifteen years from the date of its first certification, at an individual tariff for the service for maintaining the availability of electric power during the construction of newly commissioned generating units with a maneuverable generation mode, determined by based on the auction results.

At the same time, the volume and duration of the purchase of the service for maintaining the availability of electric power of the auction winner are not subject to upward adjustment.

The 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 (if necessary) is subject to annual indexation during the construction period by the inflation rate determined according to the data of the authorized body in the field of state statistics, or annual indexation in accordance with the procedure determined by the authorized body for the amount of borrowed financing in foreign currency, taking into account the change 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.

The winner of the auction is obliged to conclude an annual contract for the provision of electric power regulation services in accordance with the procedure determined in accordance with subparagraph 70-37) of Article 5 of this Law.

Liability for non-fulfillment of obligations under contracts for the purchase of services for maintaining the availability of electric power and for the provision of services for regulating electric power occurs through the use of electric power market mechanisms determined in accordance with subparagraph 42) of Article 5 of this Law.

The contractual electric capacity of newly commissioned generation units with a maneuverable generation mode is subject to annual certification by the system operator from the date of their commissioning.

In the event that, as a result of the next certification of electric power, the value of the certified electric power of newly commissioned generation plants with a maneuverable generation mode turns out to be less than the volume of services for maintaining the availability of electric power specified in the contract for the purchase of services for maintaining the availability of electric power, the volume of services for maintaining the availability of electric power, taken into account when calculating the actual rendered services for maintaining the availability of electrical power, It is reduced to the certified value before the next certification is carried out.

9. Auctions are considered invalid in the following cases::

1) the presence of less than two participants in the auction;

2) the documents submitted by all the auction participants do not comply with the requirements of paragraphs 5, 6 and 7 of this Article and subparagraph 70-41) of Article 5 of this Law.

If the auction is declared invalid, the authorized body has the right to conduct repeated auctions among the sites specified in subitems 1), 2) and 3) of the first part of paragraph 3 of this Article.

10. The winners of the auction shall reimburse the single buyer for the costs incurred in developing the preliminary feasibility study on the basis of which the auction was conducted.

11. The authorized body includes the winner of the auction in the list of power plants.

12. Generating units commissioned as part of the auction are required to comply with the regulatory range determined in accordance with subparagraph 70-41) of Article 5 of this Law.

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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