On the Electric Power Industry

 

On 6 December 2011 the President signed Federal Law No. 394-FZ amending the Federal Law “On the Electric Power Industry.”

The Law aims to improve mechanisms for state regulation of prices of electric power (capacity) on the wholesale power (capacity) market. In particular, it specifies a procedure for calculating payments for electric power (capacity) by OJSC “Administrator of the Trading System of the Wholesale Electricity Market”.

The Law also specifies a regime for tariff regulation, including within “nonpricing” zones for imports and exports of electric power (capacity). In addition, the Law specifies a procedure for cooperation between JSC Federal Grid Company of the Unified Energy System (“JSC FGC EUS”), the manager of the unified national (all-Russia) power grid (“UNPG”) and companies owning or possessing facilities which are part of the UNPG. In particular, the Law assures JSC FSK EUS’s pre-emptive right to purchase such facilities if these companies decide to sell them, and defines a procedure for the exercise of such right.

The Law entered into force on 6 December 2011, save for certain provisions.

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

Share/Save