President signs updated Electric Power Law: Energy Market Development Agency to oversee tariffs and regulation

On August 7, Shavkat Mirziyoyev signed the new version of the law "On Electric Power Industry." 

The document passed three readings in the Legislative Chamber and received approval from the Senate in June-July. It outlines measures for regulating relations in the electric power industry, as well as for creating a competitive electricity market.

The role of the regulator is assigned to the Agency for the Development and Regulation of the Energy Market under the Cabinet of Ministers. As previously reported, this agency will issue licenses for the operation of power plants.

The Cabinet of Ministers is responsible for implementing a unified state policy in the sector. The Ministry of Energy is appointed as the specially authorized state body for electricity matters.

The law defines the procedures for electricity production, transmission, distribution, storage, purchase and sale, import, and export. It also provides a more detailed description of the status, rights, and responsibilities of electricity market participants, which include:

•  Electricity market operator;
•  Producer;
•  Energy storage system operator;
•  Transmission system operator;
•  Central purchaser;
•  Trader;
•  Distribution system operator;
•  Supplier;
•  Consumer.

Tariffs and payments, as well as the methodology for their calculation, will be approved by the Agency for the Development and Regulation of the Energy Market. New rates must be published at least 15 days before they take effect. Tariffs do not have retroactive force.

Additionally, the agency will establish general rules for the electricity market. It will be responsible for publishing annual reports containing information about the market's activities and its participants, pricing mechanisms, and tariff application.