The security agreement of access to services of natural monopolies in the field of power industry, including bases of pricing and tariff policy

of November 19, 2010

The government of the Republic of Belarus, the Government of the Republic of Kazakhstan and the Government of the Russian Federation which further are referred to as with the Parties

being guided by the Agreement on the Customs union and the Common economic space of February 26, 1999, the Constitutive treaty of Eurasian economic community of October 10, 2000, the Agreement on ensuring parallel work of electric utility systems of the State Parties of the Commonwealth of Independent States (further - the CIS) of November 25, 1998, the Agreement on transit of electrical energy and capacity of the State Parties of the Commonwealth of Independent States of January 25, 2000, the Agreement on mutual assistance in cases of accidents and other emergency situations on electrical power objects of the State Parties of the CIS’ of May 30, 2002, the Concept of forming of the total electrical power market of the State Parties of the CIS of November 25, 2005, the Agreement on forming of the total electrical power market of the State Parties of the Commonwealth of Independent States of May 25, 2007, The concept of forming of total energy market of state members of Eurasian economic community (further - EurAsEC) of December 12, 2008, the Agreement on the single principles and regulations of activities of subjects of natural monopolies of December 9, 2010, the Agreement on the single principles and competition rules of December 9, 2010,

aiming to develop mutually beneficial cooperation in the field of production and transfer of electrical energy,

expressing readiness for equal cooperation in the field of power industry on the basis of mutual trust and non-interference to management of the states of the Parties of electric utility systems,

aiming to promote forming of the total electrical power market of the State Parties of the Common economic space (further - EEP)

agreed as follows:

Article 1 Basic concepts and determinations

For the purposes of this agreement the following basic concepts and determinations are used:

"the subject of the domestic market of electrical energy" - the faces which are subjects of the market of electrical energy (capacity) of the State Party of EEP according to the national legal system of this state, performing activities in the field of power industry including production of electrical energy (capacity), acquisition and sale of electrical energy (capacity), power supply of consumers, rendering services in transfer of electrical energy (capacity), supervisory control in power industry, sale of electrical energy (capacity), the organization of purchase and sale of electrical energy;

"services of subjects of natural monopolies in power industry" - services in transfer of electrical energy in power network, supervisory control in power industry and other services referred according to the national legal system of the states of the Parties to the sphere of natural monopolies;

"access to services of natural monopolies" - possibility of the subject of the domestic market of the state of one Party to use services of subjects of natural monopolies in the field of power industry in the territory of the state of other Party;

"the total electrical power market of the State Parties of EEP" - the system of the relations between subjects of the domestic markets of electrical energy of the states of the Parties connected with purchase and sale of the electric power (capacity) and the accompanying services, which is acting on the basis of the general rules and the relevant agreements;

"internal needs of the states of the Parties" - amounts of electric power (capacities) necessary for their consumption in the territory of the relevant states of the Parties;

"interstate transfer of electrical energy (capacity)" - rendering services by authorized organizations of the Parties in movement and/or substitution of electrical energy (capacity). Depending on features of the national legal system the corresponding relations are drawn up by contracts for transit or other agreements, including purchase and sale agreements of the electric power (capacity);

"movement of electrical energy (capacity)" - providing overflows of one Party of electrical energy (capacity) made in the territory of the state through networks of the state of other Party between the delivery points located on its border (borders);

"substitution of electrical energy (capacity)" - the interconnected and simultaneous delivery of equal amounts of electrical energy (capacity) to power supply system and from it through the different points of delivery located on border (borders) of the state of the Party.

Article 2 the Principles of interaction in the field of power industry

1. Interaction of the Parties in the field of power industry is based on the following principles:

- use of technical and economic benefits of parallel work of electric utility systems of the states of the Parties (further - power supply systems of the states of the Parties);

- not drawing economic damage when implementing parallel work;

- use of the mechanisms based on the market relation and fair competition as one of the main instruments of forming of steady system of satisfaction of demand for electrical energy (capacity);

- step-by-step forming of the total electrical power market of EEP on the basis of in parallel the working power supply systems of the states, taking into account features of the existing models of the markets of electrical energy (capacity) of the states of the Parties;

- step-by-step harmonization of legislations of the states of the Parties in the field of power industry;

- harmonizations of technical regulations and rules.

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