On the Ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 (regarding the formation of the Common Electric power market of the Eurasian Economic Union)

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On the Ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 (regarding the formation of the Common Electric power market of the Eurasian Economic Union)

The Law of the Republic of Kazakhstan dated March 16, 2022 No. 109-VII SAM.

To ratify the Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 (regarding the formation of the common Electric power Market of the Eurasian Economic Union), signed in Nur-Sultan on May 29, 2019.

President of the Republic of Kazakhstan

K. TOKAEV

Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 (regarding the formation of the common electric power market of the Eurasian Economic Union)

The Member States of the Eurasian Economic Union, hereinafter referred to as the Member States,

guided by article 115 of the Treaty on the Eurasian Economic Union of May 29, 2014,

In order to increase the energy security of the member States, form a legal space in the Eurasian Economic Union that allows for fair competition, create conditions for improving the efficiency and competitiveness of the economies of the member States in the field of electric power, and further strengthen mutually beneficial and equitable economic cooperation.

have agreed on the following:

Article 1

To make the following amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014:

1) Article 81 should be worded as follows:

"Article 81 Formation, functioning and development of the common electric power market of the Union

The formation, functioning and development of the common electric power market of the Union shall be carried out on the basis of principles and rules in accordance with Annex No. 21 to this Agreement, taking into account paragraph 8 of Article 104 of this Agreement.";

2) in article 82:

In paragraph 1, the words "common principles and rules in accordance with Annex No. 21 to this Treaty" should be replaced by the words "annex No. 21 to this Treaty and the act of the Union body provided for in paragraph 5 of the said annex".;

to invalidate paragraph 2;

3) in article 104:

Paragraphs 2 and 3 shall be declared invalid;

Paragraph 8 should be worded as follows:

"8. From the date of entry into force of the last of the acts adopted in accordance with paragraphs 5-8 of the Protocol on the Common Electric Power Market of the Eurasian Economic Union (Appendix No. 21 to this Agreement):

Paragraphs 43 to 49 of the said Protocol and its annex shall cease to be in force.;

Paragraph 2, paragraphs one and two of paragraph 5, paragraphs 10 to 38, paragraphs three and four of paragraph 39, paragraph 40 of the said Protocol shall enter into force.";

4) in the Protocol on Ensuring Access to Services of Natural Monopolies in the Electric power industry, including the basics of pricing and Tariff policy (Appendix No. 21 to the said Agreement):

The name should be worded as follows:

"Protocol on the Common Electric Power Market of the Eurasian Economic Union";

Paragraphs 1 to 12 should be replaced with the following text:

"I. General provisions

1. This Protocol has been developed in accordance with Articles 81 and 82 of the Treaty on the Eurasian Economic Union (hereinafter referred to as the Treaty) and defines the legal basis for the formation, functioning and development of the common electric power market of the Union.

2. The provisions of this Protocol and the acts provided for in this Protocol shall not apply to relations related to the trade of electric energy of the Member States with third States, including relations related to the interstate transmission of electric energy (capacity) through the territory of a Member State to the territory of third States, from the territories of third States through the territory of the State- a member.

The interstate transmission of electric energy (capacity) for the purpose of fulfilling obligations with respect to the subjects of the electric power industry of third countries is regulated by the legislation of the Member State through whose territory the interstate transmission of electric energy (capacity) is carried out.

3. The concepts used in this Protocol mean the following:

"accession agreement" is an agreement concluded in accordance with the rules of mutual trade in electric energy on the common electric power market of the Union, establishing mutual obligations between a participant in the common electric power market of the Union, the operator(s) of centralized trade in a certain type of centralized trade in electric energy and other infrastructure organizations of the common electric power market of the Union, ensuring the execution of purchase and sale agreements.sales of electric energy based on the results of centralized trading;

"access to the services of subjects of natural monopolies in the field of electric power industry" - the opportunity for subjects of the common electric power market of the Union to use the services of subjects of natural monopolies in the field of electric power industry in the common electric power market of the Union;

"substitution of electric energy (capacity)" is the interconnected and simultaneous supply of equal amounts of electric energy (capacity) to and from an electric power system through different supply points located on the border (borders) of a member state;

"interstate power transmission line" is a power transmission line crossing the state borders of the Member States.;

"interstate transmission of electric energy (capacity)" means the provision of services by authorized organizations of the Member States for the transfer and (or) substitution of electric energy (capacity). In accordance with the legislation of the Member State, the relevant relations are formalized by contracts for the provision of services for the transmission (transit) of electric energy (capacity) or other civil law contracts, including contracts for the purchase and sale of electric energy.;

"interstate section" is a technologically determined set of power transmission lines of all voltage classes between power systems (parts of power systems) 2 or more States passing through the State borders of the Member States, as well as through the State borders of the Member States and third States;

"interstate flow" - the flow of electric energy (capacity) through an interstate power transmission line;

"common electric power market of the Union" is a system of relations between subjects of internal wholesale electric power markets of different member states on the basis of parallel operating electric power systems related to the purchase and sale of electric energy (capacity), operating on the basis of this Protocol, acts provided for in paragraphs 5-8 of this Protocol, and relevant agreements between subjects of the common electric power the Union market;

"centralized trade operator" is an organization that provides services for the organization of a certain type of centralized trade in electric energy on the common electric power market of the Union;

"transfer of electric energy (capacity)" - ensuring the flow of electric energy (capacity) produced on the territory of one Member state through the networks of another Member state between supply points located on its border (borders);

"balance-flow of electric energy" is an algebraic sum (taking into account the direction) of interstate flows of electric energy along all power transmission lines included in the interstate section.;

A "free bilateral agreement" is an agreement for the purchase and sale of electric energy concluded between participants in the common electric power market of the Union, in which volumes, prices, delivery and settlement dates and other conditions for fulfilling obligations are determined by the parties to the agreement independently, taking into account the throughput capacities of interstate sections, other technological and regulatory restrictions.;

"network operator" is an organization authorized, in accordance with the legislation of a Member State, to provide services for the transmission of electric energy across the territory of that Member State.;

"system operator" is an organization authorized, in accordance with the legislation of a Member State, to carry out operational dispatch control of the electric power system of a member state.;

"fixed-term contract" is an agreement for the purchase and sale of electric energy between participants in the common electric power market of the Union, containing standardized conditions for the period and hours of supply of electric energy, as well as for other essential conditions, in which the price and volume of electric energy are determined during centralized trading in accordance with the regulations of the operator of centralized trading on fixed-term contracts.;

"subjects of the domestic wholesale electric power market" - legal entities that are subjects of the wholesale electric power market of a Member State in accordance with the legislation of that Member State.;

A "dead-end scheme" is a scheme in which electricity is supplied to consumers of electric energy in one Member State via interstate power transmission lines receiving voltage from another Member State.;

"services of subjects of natural monopolies in the field of electric power industry" - services for the transmission of electric energy, operational dispatch management in the electric power industry, provided by subjects of natural monopolies to ensure mutual trade in the common electric power market of the Union and interstate transmission of electric energy (capacity).

II. Principles of formation, functioning and development of the common electric power market of the Union

4. The formation, functioning and development of the common electric power market of the Union shall be carried out on the basis of the following principles:

1) cooperation on the basis of equality, mutual benefit and non-economic harm to any of the Member States;

2) maintaining a balance of economic interests of producers and consumers of electric energy, as well as other subjects of the common electric power market of the Union;

3) priority use of mechanisms based on market relations and fair competition to form a sustainable system to meet the demand for electric energy (capacity) in competitive activities;

4) ensuring unhindered access to the services of subjects of natural monopolies in the field of electric power industry within the limits of technical feasibility, subject to the priority use of these services to meet the internal needs of the member States in the implementation of interstate transmission of electric energy (capacity);

5) step-by-step formation and development of the common electric power market of the Union on the basis of parallel operating electric power systems of the member States, taking into account the specifics of existing models of electric power markets of the member States;

6) using the technical and economic advantages of parallel operation of the electric power systems of the Member States in compliance with mutually agreed conditions of parallel operation;

7) the implementation of electric energy trade between the subjects of the Member States, taking into account the energy security of the Member States;

8) gradual harmonization of the legislation of the Member States in the field of electric power industry, including regarding the disclosure of information by the subjects of the common electric power market of the Union.

III. Rules of operation of the common electric power market of the Union

5. To the extent technically possible, the Member States shall ensure unhindered access to interstate transmission of electric energy (capacity) via interstate transmission lines, taking into account the provision of domestic electric energy (capacity) needs of the Member States in accordance with the rules defining the principles and procedure for access to interstate transmission of electric energy (capacity) (hereinafter referred to as the rules access).

Interstate transmission of electric energy (capacity) is carried out on the basis of relevant agreements between the organization (organizations) authorized to carry out interstate transmission of electric energy (capacity) and the consumer of the service for interstate transmission of electric energy (capacity). The procedure for concluding, executing, modifying, terminating, terminating, registering, and accounting for these agreements is determined by the access rules.

The access rules are approved by the Intergovernmental Council.

6. Mutual trade in electric energy on the common electric power market of the Union is regulated by rules approved by the Intergovernmental Council (hereinafter referred to as the rules of mutual trade in electric energy).

7. The regulation of legal relations related to the determination and distribution of the capacity of interstate sections is carried out in accordance with the rules governing the relationship of subjects of the common electric power market of the Union in determining and distributing the capacity of interstate transmission lines available for mutual trade in electric energy on the common electric power market of the Union and interstate transmission of electric energy (capacity), approved by The Intergovernmental Council.

8. Information interaction between subjects of the common electric power market of the Union, state bodies of the member States and the Commission during the functioning of the common electric power market of the Union is carried out in accordance with the rules defining the composition of data and procedures for their provision by subjects of the common electric power market of the Union, state bodies of the Member States and the Commission during the functioning of the common electric power market of the Union and approved by the Intergovernmental Council (next, the rules of information exchange).

IV. Powers of the Commission

9. In order to ensure the formation, functioning and development of the common electric power market of the Union, the Commission shall exercise the following powers::

1) monitoring the functioning of the common electric power market of the Union in accordance with the procedure approved by the Council of the Commission;

2) preparation of proposals for improving the legal regulation of the common electric power market of the Union;

3) other powers provided for by this Protocol.

V. Management of the common electric power market of the Union and ensuring its functioning

10. The general electric power market of the Union is managed and its functioning is ensured by the following bodies and organizations:

state bodies of the Member States authorized in accordance with the legislation of the Member States to carry out regulation and (or) control in the field of electric power industry;

infrastructure organizations of the common electric power market of the Union.

In order to ensure the functioning of the common electric power market of the Union, subsidiary bodies (the Council of Heads of State Bodies of the Member States, working groups, special commissions) may be established by decision of the Supreme Council on the initiative of the Member States.

11. The state bodies of the Member States authorized in accordance with the legislation of the Member States to carry out regulation and (or) control in the field of electric power industry may include::

State bodies of the Member States authorized to implement state policy in the field of electric power industry;

state bodies of the member States authorized to implement and/or conduct competition (antimonopoly) policy;

state bodies of the Member States with the authority to regulate and (or) control the activities of natural monopoly entities.

The State bodies of a member State authorized in accordance with the legislation of that Member State to carry out regulation and (or) control in the field of electric power industry shall carry out the following functions and powers in order to ensure the functioning of the common electric power market of the Union:

ensure the implementation of measures aimed at the implementation of this Protocol;

promote the harmonization of the legislation of the Member State in the field of electric power industry in accordance with the acts adopted in accordance with paragraphs 5-8 of this Protocol.;

participate in the preparation and review of monitoring data on the functioning of the common electric power market of the Union;

carry out control over compliance by subjects of the common electric power market of the Union registered in the territory of the member state, the competitive (antimonopoly) legislation of the member state, rules of mutual trade in electric energy and rules of access in the territory of the member state;

They regulate and control the activities of natural monopolies in the field of electric power industry, registered in the territory of the member State and operating in the common electric power market of the Union, in accordance with the legislation of the member State in the field of regulation and (or) control of the activities of natural monopolies.;

They consider complaints concerning violations of access rules by a subject of the common electric power market of the Union registered in the territory of the relevant member State.;

approve methodological guidelines for determining prices (tariffs) for services of infrastructure organizations of the common electric power market of the Union, registered in the territory of the relevant member state and not being subjects of natural monopolies in the field of electric power industry;

other functions and powers provided for by acts adopted in accordance with paragraphs 5-8 of this Protocol and the legislation of the Member States.

The procedure for the exercise of the functions and powers specified in this paragraph by the State bodies of the Member States authorized in accordance with the legislation of the Member States to carry out regulation and (or) control in the field of electric power industry is determined by the legislation of the respective Member States.

12. The composition of the infrastructure organizations of the common electric power market of the Union is determined in accordance with paragraphs 21-23 of this Protocol.

The rights and obligations (functions and powers) of infrastructure organizations of the common electric power market of the Union in terms of ensuring the functioning of the common electric power market of the Union are determined by this Protocol, acts adopted in accordance with paragraphs 5-8 of this Protocol, and the legislation of the member States in the part determined by these acts.

13. The Member States shall ensure the interaction of the state bodies of the Member States authorized in accordance with the legislation of the Member States to carry out regulation and (or) control in the field of electric power industry, infrastructure organizations of the common electric power market of the Union and participants of the common electric power market of the Union.

VI. Subjects of the common electric power market of the Union

14. The subjects of the common electric power market of the Union include:

1) participants of the common electric power market of the Union;

2) infrastructure organizations of the common electric power market of the Union.