9.2

Main laws and regulations

The main laws and regulations governing JSC Tyumenenergo activities carried out in the field of electricity distribution and network connection of receiving devices of electricity consumers, electricity grid facilities and electric power generation facilities, are:

  1. Federal Law N 147-FZ dated 17.08.1995

    “On Natural Monopolies” (as amended by Federal Law N 291-FZ of 30.12.2012, by Federal Law N 132-FZ dated 28.07.2012 with effect from 27.01.2013)

    The Law defines legal framework of the federal policy in respect of natural monopolies in Russia and aims to achieve a balance between consumers` interests and natural monopoly entities providing availability of their goods for consumers and efficient operation of natural monopoly entities.

  2. Federal Law N 35-FZ dated 26.03.2003

    “On Electricity” (as amended by Federal Law N 83-FZ of 20.04.2014, N 217-FZ of 21.07.2014, N 307-FZ of 14.10.2014, N 466-FZof 29.12.2014)

    The Law establishes the legal framework for economic relations in the sphere of electricity industry, including:

    • the powers of public authorities to regulate such relations;
    • fundamental rights and duties of electric power generation facilities, when operating in the field of electric power industry, and consumers of electricity;
    • guarantees of reliable electric power supply to consumers;
    • responsibility of grid companies to consumers for reliability and quality of electric power;
    • responsibility for maintenance and operation of power facilities;
    • approval of investment programs of electric power generation facilities by the Government of the Russian Federation and executive authorities of the constituent entities of the Russian Federation.
  3. Federal Law N 36-FZ dated 26.03.2003

    “On Electric Power Industry Performance Features in Transition Period and On Amendments to Certain Regulations of the Russian Federation and Repealing Certain Regulations of the Russian Federation Due to Adoption of Federal Law ‘On Electricity’ (as amended by Federal Law N 35-FZ of 05.04.2013, N 466-FZ of 29.12.2014)

    The Law establishes:

    • the date of the end of the transition period of reform (July 1, 2008);
    • gradual market liberalization until 2011;
    • control of the Russian Federation over the activities of the territorial grid companies being natural monopoly entities until 2011;
    • since April 1, 2006 a ban on concurrent operations on electricity distribution and operational dispatch management in electric power industry and on generation and sale of electricity.
  4. Federal Law N 261-FZ dated 23.11.2009

    “On Energy Saving and Energy Efficiency and On Amendments to Some Laws and Regulations of the Russian Federation” (as amended by Federal Law N 291-FZ of 04.10.2014, N 339-FZ of 04.11.2014, N 344-FZ of 04.11.2014, N 466-FZ of 29.12.2014, by Federal Law N 458-FZ of 29.12.2014)

    The Law:

    • regulates relations on energy saving and energy efficiency;
    • establishes minimum requirements for programs on energy saving and energy efficiency to be compiled by all state-owned companies, budgetary institutions, regulated organizations, as well as regions and municipalities;
    • establishes the obligation to implement energy surveys for:
      • public authorities, bodies of local self-government, endowed with the rights of legal entities;
      • government-linked organizations or municipal entities;
      • organizations carrying out regulated activities;
      • organizations involved in production and (or) transportation of water, natural gas, thermal energy, electric energy, extraction of natural gas, oil, coal, production of refined products, natural gas, oil refining, oil, refined products transportation;
      • organizations, whose total expenses on consumption of natural gas, diesel and other fuels, fuel oil, thermal energy, coal, electricity, exceed ten million rubles for the calendar year;
      • organizations conducting activities in the field of energy saving and energy efficiency, being funded fully or partially at the expense of the federal budget, budgets of constituent entities of the Russian Federation, local budgets;
    • puts into the stream of commerce energy service contracts under which contractors will raise energy efficiency of energy use by the customer;
    • establishes a mandatory procedure for ensuring energy resources accounting and application meters for metering of energy resources when making settlements on energy resources.
  5. Federal Law N 135-FZ dated 26.07.2006

    “On Protection of Competition” (as amended by Federal Law N 143-FZ of 04.06.2014)

    The Law defines institutional and legal framework for protection of competition, including prevention and suppression of:

    • monopolistic activity and unfair competition;
    • prevention, restriction, elimination of competition by the federal executive authorities and public authorities of the constituent entities of the Russian Federation, bodies of local self-government, other authorities or organizations performing functions of these bodies, as well as state non-budgetary funds, the Central Bank of the Russian Federation.
  6. Federal Law N 39-FZ dated 25.02.1999

    “On Investment Activities in the Russian Federation Carried Out in the Form of Capital Investments” (as amended by Federal Law N 396-FZ of 28.12.2013)

    The Law defines legal and economic framework for investment activities carried out in the form of capital investment in the territory of the Russian Federation, and also establishes guarantees of equal protection of rights, interests and property of entities involved in investment activities carried out in the form of capital investments, irrespective of the forms of ownership.

  7. The Russian Federation Government Resolution N 442 dated 04.05.2012

    “On Functioning of Retail Electricity Markets, Full and (or) Partial Restriction of Electric Power Use Conditions” (as amended on 10.02.2014 N 95, on 31.07.2014 N 750, on 11.08.2014 N 792, on 23.01.2015 N 47, on 28.02.2015 N 183, on 28.02.2015 N 184, as amended by Resolution of SAC RF of 21.05.2013 N VAS-15415/12)

    The Resolution approved:

    • The main provisions of electricity retail markets functioning;
    • Rules for full and (or) partial restriction of electric power use electricity.

    The main provisions of electricity retail markets functioning establish:

    • legal framework of electricity retail markets functioning;
    • the rules of last resort suppliers` activity;
    • the procedure of granting the status of the last resort supplier, determination and (or) change of boundaries of zones of last resort suppliers` activity;
    • features of provision of electricity distribution services and payment of electricity losses at retail markets;
    • basic regulations of electricity commercial metering in the retail market.

    The main innovations in 2014 were provisions on responsibility of a grid company to sent to the address of the entity involved in the retail market, with whom the applicant intends to conclude a contract of power supply (sale and purchase (supply) of electricity (power) ) in respect of power receivers, network connection of which is in progress (not completed), a copy of the network connection contract signed with the applicant regarding connection of its power receivers, and copies of other documents of the applicant, which the grid company has as of the date of delivery; as well as there was determined the list of these documents, and the procedure and deadlines for operations of a grid company and last resort supplier. There was determined the starting date of performance of obligations by the last resort supplier under the contract of power supply (sale and purchase (supply) of electricity (power) ) in case of signing thereof prior to completion of the procedure for network connection of power receivers in respect of which is such a contract is to be signed.

    Rules for full and (or) partial restriction of electric power use conditions establish:

    • the grounds and procedure for full and (or) partial restriction and resumption of electric power use conditions.
  8. The Russian Federation Government Resolution N 861 dated 27.12.2004

    “On Approval of the Rules for Non-discriminatory Access to Electricity Distribution Services and Rendering These Services, the Rules for Non-discriminatory Access to Services of Operational Dispatch Management in Electric Power Industry and Rendering These Services, the Rules for Non-discriminatory Access to Services of Administrator of Wholesale Market Trading System and Rendering These Services, the Rules for Network Connection of Power Receivers of Electricity Consumers, Electric Power Generation Facilities, and Electric Grid Facilities Owned by Grid Companies and Other Persons, to Electric Grids” (as amended on 10.02.2014 N 95, on 20.02.2014 N 130, on 07.03.2014 N 179, on 11.06.2014 N 542, on 31.07.2014 N 740, on 31.07.2014 N 750)

    The Resolution approved four regulations of which the most important for grid organizations are:

    • the Rules for Non-discriminatory Access to Electricity Distribution Services and Rendering These Services;
    • the Rules for Network Connection of Power Receivers of Electricity Consumers, Electric Power Generation Facilities, and Electric Grid Facilities Owned by Grid Companies and Other Persons, to Electric Grids.

    The Rules for Non-discriminatory Access to Electricity Distribution Services and Rendering These Services establish the main principles and the procedure for ensuring non-discriminatory access to electricity distribution services and rendering these services. The Rules defined the procedure of conclusion and execution of the contract on rendering electricity distribution services, the procedure for access to the grids in the context of limited transmission capacity thereof.

    The main innovations in 2014 were:

    • provisions of the Rules for compulsory conclusion of by a grid company of the contract on rendering electricity distribution services in case an applicant sends a request for conclusion of such a contract in respect of the power receivers that do not have network connection (direct or indirect) to the facilities of such a grid company but in respect of which there is a contract on implementation of network connection to the grids of this grid company. The procedure for conclusion of such a contract on rendering electricity distribution services, as well as the time of entry into force thereof was determined;
    • clarification of the method in which the scope of electricity distribution services for grid companies and consumers was determined;
    • clarification of the method in which the voltage level for each delivery point when calculating and applying a price (tariff) for electricity distribution services was determined;
    • the provisions of the Rules were supplemented by provisions on the procedure for determining the value of electrical energy losses in electric grids when distributing thereof to the territorial grid companies in applying two-rate tariff option.

    The Rules for Network Connection of Power Receivers of Electricity Consumers, Electric Power Generation Facilities, and Electric Grid Facilities Owned by Grid Companies and Other Persons, to Electric Grids determine the procedure of network connection of power receivers of electricity consumers, electric power generation facilities, and electric grid facilities owned by grid companies and other persons, to electric grids (hereinafter referred to as the power receivers), regulate the procedure of power receivers` network connection to a grid company`s grids (hereinafter - network connection), including use of temporary circuits, define essential terms of the contract on implementation of the network connection to electric grids, establish requirements to delivery of technical conditions, including individual ones, for access to electric grids and criteria of existence (lack) of technical capability of network connection of consumers` power receivers due to redistribution of maximum capacity among legal entities and individual entrepreneurs, as well as specificity of electric power consumers` refusal from maximum capacity in favor of a grid company.

    The main innovations in 2014 were:

    • provisions on the procedure of review of fulfilment by an applicant and a grid company of technical conditions;
    • provisions on restoration and re-registration of the documents on the network connection;
    • provisions that a consumer (buyer) intending to conclude a contract with the last resort supplier of power supply (sale and purchase (supply) of electricity (power) ) shall, in case of conclusion of such a contract until completion of the procedure of its power receivers` network connection to the grids of a grid company, have the right either directly or through a grid company to provide the last resort supplier with a statement on conclusion of the respective contract. In this case, there is determined the course of action binding on a grid company regarding transfer of copies of applicants` documents to the relevant entities operating in the retail markets, including upon completion of the network connection.

    There were also approved the form of acts on the network connection implementation, delineation of balance inventory, delineation of operational responsibilities, inspection (survey) of electrical installations, the act on technical conditions completion.

  9. The Russian Federation Government Resolution N 24 dated 21.01.2004

    “On Approval of Standards of Disclosure of Information by Entities of Wholesale and Retail Markets of Electricity” (as amended on 31.08.2013 N 758, on 09.12.2013 N 1131, on 17.02.2014 N 116, on 17.02.2014 N 119, on 25.02.2014 N 136, on 28.04.2014 N 381, on 11.06.2014 N 542, on 09.08.2014 N 787, on 23.01.2015 N 47, as amended by Decree of the Russian Federation Government dated 16.02.2015 N 132)

    The standards establish structure of the information disclosed by entities of wholesale and retail markets of electricity, as well as the procedure, ways and terms of disclosure thereof.

  10. The Russian Federation Government Resolution N 977 dated 01.12.2009

    “On Investment Programs of Electric Power Industry Entities” (as amended on 29.03.2014 N 247, on 16.02.2015 N 132)

    The Resolution approved:

    • criteria for including electric power entities, in which authorized capital the state participates, and the grid companies into the list of entities which investment programs (including identification of sources of their financing) are to be approved by authorized federal executive bodies and (or) executive authorities of Russian Federation constituents;
    • the rules for approval of the investment programs of electric power entities, in which authorized capital the state participates, and of the grid companies;
    • the rules for supervising implementation of the investment programs of electric power entities.

    Depending on certain criteria, investment programs of electric power entities are approved by:

    • Ministry of Energy of the Russian Federation;
    • authorities of constituent entities of the Russian Federation.

    State control over use of investment resources to be included in the tariffs regulated by the state, is carried out by the Federal Service for Tariffs and executive bodies of the Russian Federation constituent entities in the field of state tariff regulation.

  11. The Russian Federation Government Resolution N 1178 dated 29.12.2011

    “On Pricing in the Field of Regulated Prices (Tariffs) in Electric Power Industry” (as amended on 17.02.2014 N 117, on 25.02.2014 N 136, on 07.03.2014 N 179, on 02.06.2014 N 505, on 11.06.2014 N 542, on 01.07.2014 N 603, on 31.07.2014 N 750, on 09.08.2014 N 787, on 11.08.2014 N 792, on 16.08.2014 N 820, on 23.08.2014 N 850, on 29.10.2014 N 1116, on 03.12.2014 N 1305, on 26.12.2014 N 1549, on 23.01.2015 N 47, on 13.02.2015 N 120, on 19.02.2015 N 139, as amended by Resolution of SAC RF of 02.08.2013 N VAS-6446/13, Decree of the Russian Federation Government of 16.02.2015 N 132)

    The Resolution approved two documents:

    • Basic principles of pricing in the field of regulated prices (tariffs) in electric power industry;
    • Rules of government regulation (revision, application) of prices (tariffs) in electric power industry.

    In the first document the basic principles and methods of tariffs (prices) regulation in electric power industry are defined, in the second document the fundamentals and establishment procedure (revision, application) of such tariffs are set.

    In pricing basic principles activities on which the organizations carrying out regulated types of activity are obliged to keep the separate accounts are listed.

  12. Order of the Federal Tariff Service of the Russian Federation of 06.08.2004

    “No. 20-e/2 On Approval of Methodical Instructions Concerning Calculation of Regulated Tariffs and Prices for Electric (Thermal) Energy in the Retail (Consumer Market) ” (as amended on 14.04.2014, on 16.09.2014), as amended by Resolution of the Supreme Arbitration Court of the Russian Federation of 28.10.2013 N VAS-10864/13, by Order of the FTS of Russia of 16.09.2014 N 1442-e)

    Methodical instructions are intended for the use by regulators (federal executive authority on regulation of natural monopolies and executive authorities of constituent entities of the Russian Federation in the field of state regulation of tariffs), the local governments regulated by the organizations for calculation by a method of economically reasonable expenses of regulated tariffs levels and prices on the retail (consumer) market of electric energy (power) and thermal energy (power).

  13. Order of the Federal Tariff Service of the Russian Federation of 11.09.2012

    “No. 209-e/1 On Approval Methodical Instructions Concerning Determination of Charge Amount for the Network Connection to Electric Grids” (as amended on 01.08.2014)

    Methodical instructions determine basic provisions concerning calculation of the charge amount for the network connection of power receivers of electric energy consumers, electric power generation facilities, and electric grid facilities owned by grid companies and other persons, to electric grids, and are intended for use by the Federal Tariff Service, executive authorities of constituent entities of the Russian Federation in the field of state regulation of tariffs, the grid companies, as well as persons who have applied to the grid companies for the network connection.

In addition to federal laws and regulations, regulations of constituent entities of the Russian Federation are applied, inter alia, those governing granting of land plots and issuance of permits for construction of electric grid facilities, as well as decisions of a regional executive body in the field of tariff regulation - Regional Energy Commission of the Tyumen Region, Khanty-Mansiisk Autonomous District — Yugra, and Yamalo-Nenets Autonomous District:

  • on introduction of unified (boiler) tariffs for services on electric power distribution to consumers in the territory of the Tyumen Region, Khanty-Mansiisk Autonomous District – Yugra and Yamalo-Nenets Autonomous District;
  • on introduction of individual tariffs for services on electric power distribution for mutual settlements among JSC Tyumenenergo and adjacent grid companies;
  • on introduction of standardized tariff rates, rates for maximum power unit (rub./kW) for a regulation period, formulas for calculation of payment for network connection to electric grids of JSC Tyumenenergo by applicants` power receivers.