Article 7-1. Licensing in the field of electric power industry The Law on Electric Power Industry

Home / Laws / Article 7-1. Licensing in the field of electric power industry The Law on Electric Power Industry

1. The activities of energy transmission and energy supply organizations are subject to licensing in accordance with the legislation of the Republic of Kazakhstan on permits and notifications.

2. The purchase of electric energy for the purpose of energy supply is carried out by energy supply organizations licensed to engage in this type of activity.

A license to purchase electric energy for energy supply purposes is issued to organizations that meet the following qualification requirements:

1) the presence of electrical networks (cable or overhead power lines) of at least four voltage classes (220, 110, 35, 20, 10, 6, 0,4 kilovolts) with direct technological connection to the national electric grid;

2) the presence of at least thirty thousand directly connected consumers of electric energy, including through communal networks, with the exception of legal entities, one hundred percent of shares (shares in the authorized capital) of which belong to the state, are owned by the public and simultaneously carrying out activities in accordance with paragraphs 3), 4) and 14) paragraph 1 of the Article 5 of the Law of the Republic of Kazakhstan "On Natural Monopolies", for which the presence of twelve thousand directly connected consumers of electric energy is sufficient.

3. The issuance, suspension, renewal, and revocation of a license for the transmission of electric energy shall be carried out by the authorized body in accordance with the procedure and on the grounds established by the Law of the Republic of Kazakhstan "On Permits and Notifications" and this Law.

The license for carrying out activities for the transmission of electric energy may be suspended for a period of no more than six months in the following cases::

1) the discovery of false information in the licensee's materials submitted when obtaining a license to carry out activities for the transmission of electric energy;

2) failure to comply with the instructions of the control body on the elimination of identified violations of the requirements of the legislation of the Republic of Kazakhstan in the field of electric power industry within the prescribed period;

3) the licensee's voluntary application to the authorized body.

Upon suspension of the license for carrying out activities for the transmission of electric energy, the licensee continues to carry out activities for the transmission of electric energy through its electric networks in accordance with subparagraph 3) paragraph 6 of Article 13-1 of this Law.

In case of failure to eliminate the comments that were the basis for the suspension of electric power transmission activities, before the expiration of the suspension period, the authorized body, within ten working days from the expiration of the suspension period, initiates the procedure for revoking the license to carry out electric power transmission activities.

The renewal of the license for the transmission of electric energy is carried out upon the request of the licensee in accordance with the procedure established by paragraphs 3 and 7 of Article 45 of the Law of the Republic of Kazakhstan "On Permits and Notifications".

From the moment of revocation of the license for carrying out electric energy transmission activities, the owner of electric networks is obliged to transfer his networks within six months in accordance with paragraph 2 of Article 13-1 of this Law.

4. Inspections carried out for compliance with the qualification or licensing requirements for permits issued in accordance with the Law of the Republic of Kazakhstan "On Permits and Notifications" are carried out by the control body for energy transmission organizations in accordance with the Business Code of the Republic of Kazakhstan.

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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