The State Duma of the Russian Federation approved in the first reading a draft law simplifying the interaction of the electric power industry entities

The State Duma of the Russian Federation in the first reading approved a draft law on amendments to the Federal Law "On the Electric Power Industry", which simplifies the interaction of entities in terms of the technological functioning of the electric power industry.

The bill presupposes the exclusion of non-functioning regulation mechanisms in the electric power industry, Anastasia Bondarenko said.

“The requirement to conclude an agreement for the provision of services for operational dispatch control before concluding an agreement on the transmission of electrical energy will be excluded. This will simplify the procedure for concluding an agreement with network organizations for companies and consumers who are not payers for services in the United Dispatch Management (UDM)”, the Deputy Minister explained.

It is also proposed to exclude the provision stipulating control of the System Operator over the generating companies investment programs implementation, which contradicts Articles 21 and 29 of the Federal Law “On the Electric Power Industry”.

“The amendments proposed by the draft law will make it possible to comprehensively regulate the technologically interrelated issues of reliability, safety in the electric power industry and the quality of electric energy within the framework of a unified system of normative acts. The amendments envisaged by the bill correspond to the principles of implementing the “regulatory guillotine” mechanism and take into account the modern system of regulatory control formed in the industry, ”said Anastasia Bondarenko.

In addition, the principles of the distribution of functions between the entities of operational dispatch management, companies and consumers will be fixed.

“In addition, there will be a procedure for agreeing technical solutions and measures aimed at ensuring the reliable functioning of the power system, as well as amended the rule on the establishment of a legal penalty for late payment for operational dispatch control services,” she added.

The project is aimed at clarifying the conceptual framework, improving the order of interaction between energy companies and energy consumers, as well as unifying certain provisions of the Federal Law following the established practice, said Anastasia Bondarenko, presenting the bill to the State Duma.

“In terms of the conceptual apparatus, the definitions of such terms as “operational and technological control”, “operational and dispatch control in the electric power industry”,              “installed generating capacity”, “installed generating capacity” will be clarified. In addition, it is planned to introduce the definition of "available generating capacity" and exclude the outdated concept of "rolling power cut" and the unused concept of "maximum available generating capacity", - explained the State Secretary - Deputy Minister of Energy of the Russian Federation.