Amendments to Electric Power Industry legislation of Kazakhstan15 march 2016, 17:42
GRATA Finance & Securities Group has released a legal alert covering important legal developments in the Kazakhstani legislation that occurred in 2015.
Most of the changes were introduced in the legislation pursuant to adoption in May 2015 of a new policy document – the Plan of the Nation: 100 Steps for Implementation of 5 Institutional Reforms – governing the development of Kazakhstan in the short-term perspective.
The legal review covers the following areas:
1. Law on Corruption Countermeasures
2. New Civil Procedure Code
3. Law on Astana International Financial Center
4. Law on Judicial System
5. Law on Supreme Judicial Council
6. Resolution on Application of Bankruptcy and Rehabilitation Legislation by the Courts
7. New Commercial Code
8. PPP Law
9. Law on WTO Accession
10. Law on Special Defensive, Antidumping and Compensational Measures
11. Law on Ownership Right Further Protection
12. Law on Amendments to Electric Power Industry
13. Law on Amendments Related to Non-performing Loans, Financial Services and Financial Organisations
14. Law on Agricultural Cooperatives
15. Privatisation Decree
16. Rules of Electronic Trades
17. New Procurement Law
Each of them is addressed in a separate release on our website, whereas the today’s release deals with the changes in the legislation regulating Electric Power Industry.
LAW ON AMENDMENTS TO ELECTRIC POWER INDUSTRY
On 12 November 2015, Kazakhstan enacted the Law on Amendments to Electric Power Industry (Law of the Republic of Kazakhstan dated 12 November 2015 no. 394-V “On Introduction of Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on Electric Power Issues”). Amendments were made to the Law On Electric Power Industry (Law of the Republic of Kazakhstan “On Electric Energy” dated 9 July 2004 no. 588-II), the Law On Natural Monopolies and Regulated Markets (Law of the Republic of Kazakhstan “On Natural Monopolies and Regulated Markets” dated 9 July 1998 no. 272-I) and some other laws.
The most important amendment introduced by the Law on Amendments to Electric Power Industry is that the introduction of the capacity market in Kazakhstan has been postponed by 3 years until 2019. Initially, capacity market was planned to be introduced in Kazakhstan from 1 January 2016, however, given the recent crisis and respective decrease of industrial production, it was decided by the Government to postpone introduction of capacity market to avoid increase of tariffs and additional burden on industrial consumers. Accordingly, “ceiling” tariffs system that was planned to expire on 1 January 2016 due to introduction of capacity market has been also extended until 1 January 2019. The Order of the Minister of Energy of the Republic of Kazakhstan No 676 (Order of the Minister of Energy of the Republic of Kazakhstan dated 30 November 2015 No 676 “On Introduction of Amendments and Additions to Certain Orders of the Minister of Energy”) has established the rates of ceiling tariffs for the next three years (2016-2019).
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