Law of the Republic of Moldova: Gas Act

no. 136-XIV from 17 September 1998

CHAPTER I GENERAL PROVISIONS

Article 1. The scope of the Act

(1)    The scope of the present Act shall cover the following:
a)    production and storage of combustible gases (hereinafter: gas);
b)    transmission and distribution of gas;
c)    gas supply activities, including gas import and export and gas transit;
d)    prices for gas and regulations for the gas industry;
e)    licensing;
f)    protection of the interests of consumers.
(2)    The present Act regulates the legal relationships between the partners in the gas market: gas entities, suppliers and consumers.
(3)    The scope of the present Act shall not extend to the utilization of bottled gas. The utilization of bottled gas shall be regulated in accordance with a Government Decree.

Article 2. General conditions

Gas shall be produced, stored, transmitted, distributed and supplied in an efficient way from the economic point of view observing the legislation regarding the safety of property, environment and labor protection as well as other laws and regulations in force in the interests of the national economy and consumers.

Article 3. Definition of terms

For the purpose of the present Act there are utilized the following terms: Gas system - the totality of the elements of the chain of production, storage, transmission, distribution and utilization of gas;
Gas entity - a legal person engaged in the production, storage, transmission and gas distribution;
Gas producer - legal entity who has been given the license to extract gas as a natural resource from the territory of the Republic of Moldova or to produce it artificially;
Storage - the activity related to storing gas;
Transmission entity - legal entity who has been given the license for the transmission of gas;
Distribution entity - legal entity who has been given the license for the distribution of gas;
Gas dist ribution network - a system cons i st ing of high, medium and low press ure gas pipelines and other equipment and dist ribution points s i tuated downst ream from the dist ribution station and upst ream from the connection point that serve in the aggregate the purpose of dist ribution of a s upply of ga s to the connection points ;
Gas transmission network - a system cons i st ing of high press ure gas pipelines , stations for compress i on, dist ribution and meas urement that serve in the aggregate the purpose of gas trans mis s i on;
Gas network - ga s trans miss i on and dist ribution networks ;
Gas distribution station - the installations that belong to the ga s tran s miss i on networks and serve the purpose of gas transfer from high press ure pipelines to dist ribution pipelines of high, medium or low press ure;
Distribution point - an object of the dist ribution network that serves the purpose of gas transfer from the pipelines of high or medium press ure to the pipelines of medium or low pressure;
Connection point - the place where the cons umer equipment is connected to the gas network and that is the boundary of the property of the cons umer and the gas entity or the s upplier;
Supply - acquis i tion and selling the gas ;
Supplier - a legal entity who has been given license for acquis i tion and for sale of a s upply of gas at regulated and unregulated tarrffs ;
Consumer - natural (private) person or legal entity whose gas cons uming installations are connected to the gas network through one or more connection points ;
Consumer equipment - the installations of the cons umer and the cons umer gas network s i tuated downst ream from the connection point;
Gas meter - equipment and the combination of devices that serve to meas ure the volumes of gas trans mitted through the trans miss i on and dist ribution networks as well as the volumes of gas utilized by the consumers ;
Cost of service - actual costs necessarily and reasonably incurred during the performing of an activity as production, storage, trans miss i on, dist ribution and s upply of gas ;
Natural monopoly - activity aimed at trans miss i on and s upply of gas in the course of the performance of which market rules are absent or do not operate adequately because the cons umer has no other choice;
Pay for connection - payment for meter procurement, test ing and installation, as well a s for other equipment, apparatus and pipes to the consumer necessary to satisfy requirements for connections to the trans miss i on and dist ribution grids .

CHAPTER II ADMINISTRATIVE COMPETENCE

Article 4. Responsibilities of the Government.

The policy of the operation and development of the gas system of the Republic of Moldova is implemented by Government as follows :
a)    Establishes the strategy (program) of the extraction and utilization of gas from gas fields find on the territory of the Republic of Moldova and the strategy for the development of the main gas pipelines including joint projects with other states. Assures energy security of the state.
b)    Establishes the conditions regarding the import, export and transit of gas;
c)    Approves the construction of the main gas pipelines;
d)    Approves the construction of artificial gas storage with the capacity that exceed 0.1 miilion cubic meters as well as of gas storage based on the utilization of natural (underground) reservoirs.

Article 5. The National Energy Regulatory Agency

(1)    The gas system shall be regulated by the National Energy Regulatory Agency, hereinafter: Agency.
(2)    The Agency is a permanent public body with the status of a legal entity that is not subordinated in any way in its activity to any other government or private agency or institution, except the stipulations of Art. 5 (3) and Art. 8 (p.3, 4, 5, 8) and art. 9(4).
(3)    The Government in accordance with the present act shall approve the Regulation of the Agency.

Article 6. The tasks and man duties of the National Agency for Energy Regulation

(1) The Agency has the following obligations:
a)    license the production of gas, gas storage operation, transmission, distribution and supply of gas as well as activities which assure the increase of efficiency and competition on the gas market,
b)    control the meeting of requirements and the quality of services;
c)    in cases stipulated in the present Act amends or withdraws the licenses mentioned in Art 6, 1,a;
d)    elaborates and approves in accordance with the established process the methodology of ca l cula tion of regulated ga s ta r^fs, a nd a pproves regulated ga s ta rtffs;
e)    supervise the correctness of ca l culation- of the regula ted ga s ta rtffs- performed by the license holders according to the provisions defined in the license;
f)    monitors the business of the agents that act in the gas market;
g)    defines the economic technique data and data that provide the functioning of gas system in the whole, that shall be made public by the license holders, taking in consideration their confidentiality;
h)    promotes the competition in the gas market;
i)establishes the accounting model and information system to be used by the license holders to report to the Agency, in compliance with the National Standard Accounting System.

Article 7. The rights of the Agency

(1)    In the interest of the fulfilment of its duties stipulated in the present Act the Agency
is entitled:
a)    to control the observance of the conditions, stipulated in the license, by the license holders;
b)    to control the correctness of application of regulated tariffs by the license holders;
c)    to have access to the documents concerning the activities subject to license even in case they contain state or business secrets;
d)    to obtai  copies, abstracts of such documents a nd request a dditional information from the license holder in order to fulfilits duties;
e)    to enforce the principle of minimum costs regarding the production, transmission, distribution and supply of gas;
f)    to issue regulations in order to perform its duties in the most efficient way;
g)    to exact fines.
(2)    The Agency may also have other rights stipulated in its regulations and legislation in
force.

Article 8. Administration of the Agency

(1)    The Agency shall be managed by the Administration Council consisting of 3 Directors.
(2)    The decision of the Administration Council shall be taken by a majority of votes. Each Director of the Administration Council has one vote.
(3)    The Directors of the Administration Council shall be appointed by the Government of the Republic of Moldova for a term of 6 years, except the case of their initial appointment under this Act when: one Director shall be appointed for a term of 2 years, one Director for a term of 4 years and one Director for a term of 6 years. The Government of the Republic of Moldova shall appoint a Director of the Administration Council every 2 years or whenever a term, for any cause, becomes vacant, in which case the new Director shall serve the remaining time of the unexpired term. No person shall serve as a Director of the Administration Council for more than 12 years and no person shall be appointed Director after having served as a Director for more than 6 years, including any time remaining on the current term of the Director.
(4)    A Director may be dismissed by the Government of the Republic of Moldova only if:
a)    he/she resigns,
b)    looses the citizenship of the Republic of Moldova,
c)    is not able to fulfil hissher duties by reason of health,
d)    is elected in an other function,
e)    is convicted by the court,
f)    violates systematically hissher obligations,
g)    violates the legislation in force.
(5)    The Government of the Republic of Moldova shall designate one of the Directors as General Director of the Agency's Administration Council.
(6)    The General Director shall engage and direct the staff of the Agency being supported by at least one member of the Administration Council.
(7)    At enterprises regulated by the Agency, in accordance with this act, the Director of
the Administration Council shall not:
a)    holed any office or position;
b)    be a shareholder, debtor or creditor;
c)    receive or expect to receive any compensation or other financial consideration;
d)    attempt to obtain employment for any person or himself.
(8)    The General Director shall present a report regarding the activity of the Agency in
the previous year to the Parliament and the Government of the Republic Moldova.

Article 9. The Agency's budget.

(1)    By November 15 of each year, the Agency wiil prepare its detailed budget for the
next year on the basis of:
a)    annual regulatory fees applied by the Agency to license holders;
b)    fees for license issuance;
c)    other sources provided by the legislation.
(2)    The Agency wiil establish the regulatory fees level in the basis of valuation of gas
volumes for the next year, received from the license holders until November 1, and that
wiil be sufficient to cover all the budgetary expenditures of the Agency during the next
year. To determine the level of regulatory fees for the production, transmission,
distribution, gas supply at regulated and non-regulated tartffs, there wiil be applied the
following principles:
a)    in the case of gas production (accumulation) entities the fees wiil be imposed on the gas volume produced (stored);
b)    in the case of gas transmission entities, the fees wiil be imposed on the gas volume delivered to the distribution networks;
c)    in the case of distribution entities, the fees wiil be imposed on the gas volume delivered to the final customers;
d)    in the case of gas s upply entities the fees wiil be imposed on the delivered volumes .
(3)    The regulatory fees , paid by license holders , wiil be transferred on the current account of the Agency, which is the sole user of these funds . In the case where the Agency's funds are not fully utilized during the current year of regulation, then they should be transferred and included in the next year budget; in the case where it occurs a deficit of funds during the current year of regulation, the Agency is entitled to reimburse it from the next year budget, applying an appropriate regulatory fee. The Agency is entitled to contract loans at reasonable rates of interest to cover the current costs that can not be covered by the collected regulatory fees. The Agency wiil reimburse the funds received from the regulatory fees applied.
(4)    The Agency's budget wiil be approved by the Minister of Finance at the level of 0.06¬0,09% from the annual cost of the energy and natural gas supplied to customers. The Agency's budget wiil be published in the republican mass media.

Article 10. Financial report

By March 1 of each year, the ANRE wiil prepare a financial report which wiil include both the accounting data of the regulatory fees transferred by the license holders on the current account of the Agency, and the Agency's expenditures during the previous year. The financial report wiil identify all the loans contracted by the Agency during the given regulation year as well as other funds utilized by the Agency. The financial report wiil be published in the republican mass media.

Article 11. Protection of consumers

(1)    In the course of the performance of its activities the Agency shall:
a)    pay regular attention to matters affecting the interests of consumers;
b)    elaborate detailed rules regarding the protection of consumers;
c)    investigate the complaints of consumers;
d)    co-operate with the organizations that represent the interests of consumers;
e)    provide the organizations which protect the interests of consumers as well as the consumers with necessary data and relevant information regarding the activity of license holders excepting the confidential information;
f)    decide in disputed maters both between consumers and suppliers, and between consumers and transmission and distribution entities.
(2)    The consumers may address a claim to the Agency concerning any maters within
the authority of the Agency including the quality of services provided by a gas entity or a
supplier. The Agency shall examine the mentioned complaints and wiil take respective
measures within the limits of its authority.

Article 12. Transparency of the Agency's activity. Decisions of the Agency

(1)    The Administration Council shall perform its duties so in order to ensure the
transparency of its activity. In this order:
a)    the Administration Council's sessions wiil be public;
b)    the interested Parties wiil be informed in advance about the agenda of the Administration Council's session. Both, the interested Parties and the public at large wiil have free access to the examination of problems in discussion. In case when the problems under discussion are confidential, they wiil be examined at closed-door meeting, the sess i on's decis i ons being access i ble to every interested party.
(2)    In the event of a disagreement between a licensee and a cons umer or another licensee, involving a mater within the juris diction of the AN RE which cannot be re s olved through negotiation, the matter of disagreement shall be analyzed by the AN RE in order to make a decision within the scope of its authority.
(3)    A decision of the Agency may be appealed to Court according to effective legislation.
(4)    The licenses iss ued by the Agency as well as its decis i ons of public interest s hall be publis hed in the Monitorul Oficial of the Republic of Moldova.

CHAPTER III LICENSING

Article 13. Activities subject to license

(1)    Production of gas , gas storage operation, trans miss i on, dist ribution and s upply of gas are activities subject to license. There can be licensed other activities of the gas industry if doing so it is stimulated the competition in the gas market.
(2)    The activity connected to operation of gas storage of the capacity under 0.1 miilion cubic meters is not subject to license.

Article 14. The conditions for licensing

(1) To perform the activities stipulated in the Article 13 there shall be issued licenses to economic entities that are legal entities and if they satisfy the following conditions: a) are registered in the Republic of Moldova;
b) prove that they have financial and technical sources as well professional training to ensure a normal performance of the licensed activity.
(2)    The manager of the enterprise, that is license holder, shall have to meet the
following requirements:
a)    to be able to perform hissher duties;
b)    to have permanent residence in the Republic of Moldova;
c)    higher education with a technical bias and at least 5 years experience in the field;
d)    to have no previous convictions relevant to the activity regulated by the present Act, not to be punished earlier - according to the criminal code - for the deeds - intentionally done.
(3)    There shall not be issued licenses to economic entities that undergo bankruptcy or
liquidation procedures, as well as to economic organizations whose licenses were
withdrawn earlier for reasons provided in Art.17 (2), b, c, d, e, and there has not yet
passed 10 years from the moment of the withdrawal.

Article 15. Types of licenses

(1)    The Agency is entitled to issue the following types of licenses:
a)    license for production of gas;
b)    license for the operation of gas storage facilities;
c)    license for transmission of gas;
d)    license for distribution of gas;
e)    license for the gas supply at regulated ta^fs;
f)    license for the gas supply at non-regulated tariff;
g)    licenses necessa ry for the promotion of competition in the ga s ma rket to reduce the ta ritfs a nd protect the consumers.
(2)    The licenses for ea ch type of the a ctivity a nd the Regula tion on license issua nce sha I l
be a pproved by the Administra tion Council of the Agency a nd sha I l include a mong other
data a nd informa tion the conditions concerning the ca l cula tion of ta ritfs a nd the
requirements rega rding the qua l ity of services.

Article 16. The rights and the obligations of a license holder

(1)    The license holder is obliged:
a ) to fulfil the conditions stipulated in the license;
b)    to observe the principle of minimum costs presenting the deta i led ca l culations proving it to the Agency in the ca se where the Agency decides on the non-competitiveness of the ga s ma rket;
c)    to fulfiil its obligations defined in the license without discriminating against any market participant or consumers;
d)    to provide continuous services except the ca ses stipulated in the license a nd in ca se of non-payment, technical and safety problems, and in accordance with the terms of contra cts;
e)    to present to the Agency a nnua l reports on their a ctivity during the previous yea r according to a form and terms established by the Agency. At the Agency's request, the license holders wiil submit any other information necessary for the Agency's operation under the effective legislation;
f)    to pay on a regular basis the regulatory fees.
(2)    In the case where the legal or physic person do not fulfiil its obligations of payment
in accordance with the concluded agreement or the conditions on service rendering, the
license holder can not be obliged by any public or private authority to provide such kind
of services.
(3) Licensee has free access to the natural gas meters located on the premises of
customers with whom Licensee has a contract to provide a supply of natural gas.
(4)    The license holder is prohibited from purchasing shares of another license holder without the Agency's written approval.
(5)    The right to hold more than one license is regulated by the Agency.

Article 17. Amendment, suspension and withdrawal of the license

(1)    The license may be amended on the initiative of the ANRE or the license holder and with the agreement of the other party in the event of substantial changes in circumstances.
(2)    The Agency may withdraw the license definitely or temporarily in case:
a)    the license holder requests the withdrawal of the license;
b)    the license holder is declared bankrupt and is unable to fulfiil its responsibilities;
c)    the license holder obtained the license fraudulently;
d)    the license holder does not observe the conditions stipulated in the license;
e)    the license holder breaks the present Act and the legislation in force in the course of the performance of its activity.
(3)    In the event of license's withdrawal the Agency is obliged to take measure in order to ensure reliable and efficient supply of gas to consumers.
(4)    The Agency's decision on the amendment or withdrawal of the license can be argued in the Court.

Article 18. Merger or separation of gas entities

Merger of gas entities, merger of gas entities with other economic organizations and associations, and separation or division of the gas entities or gas suppliers shall be done only with the approval of the Agency if such a merger, separation or division could influence regulated taritfs. Upon the entities obtaining the appropriate approval, the Agency may amend the license conditions.

CHAPTER IV RIGHTS TO OTHER PARTIES REAL ESTATE


Article 19. General rights

(1)    A gas entity license holder is entitled to apply to the authorized bodies for:
a)    the right of preparatory work;
b)    right of cabling;
c)    expropriation;
d)    other necessary authorizations.
(2)    The license holder is obliged to recompense the damages caused to the owner of the real estate or other property as a result of preparatory cabling works, construction, insta I la tion, repa i r a nd the elimination of the consequences of the fa ults.
(3)    In order to prevent or eliminate a rea l or imminent a ccident the owner or the user of the real estate shall permit the gas entities to utilize its real estate as required.
(4)    In the areas under nature protection the rights listed in point (1) shall not be
exercised unless a preliminary permission from the competent nature protection authority is obtained.

Article 20. Preparatory works.

In connection with the construction of the gas networks the gas entity may apply for a permission for right of preparatory work.

Article 21. Right of cabling

(1)    The right of cabling permits the license holder of the gas entity to perform the construction, installation, repair and replacement of the gas pipelines, compressor stations, distribution stations and distribution points and other equipment of the gas networks.
(2)    The right of cabling ceases if the construction of the gas objects is not finalized in 5 years.

Article 22. Right of use

(1)    Any object - of the gas entities - that are not stipulated in the Article 22, point (1) may be placed and operated on other parties real estate on the basis of the right of use.
(2)    The right of use is established on the basis of an agreement with the owner of the real estate.
(3)    In case there cannot be reached an agreement concerning the establishment of the right of use the license holder may request the support of competent authority to solve the problem.
(4)    The right of use ceases in case the construction of the objects defined in point (1) shall not been finalized within 5 years reckoned from the date the right of use was authorized.

Article 23. Expropriation

(1)    In case the license holder has not been able to obtain the right of use in order to build the compressor station, distribution station and distribution points and other objects of public use it is entitled to initiate the procedure of the expropriation of the real estate of the other owner according to the legislation in force.
(2)    In order to construct and operate the gas pipelines, the procedure of expropriation may ta ke pla ce only if the license holder demonstra tes tha t the right of ca bling stipulated in Article 21 hinders substa ntia I ly or even termina tes the proper use of the re a l est a te.
(3)    The rea l estate expropriated in a ccorda nce with points (1) a nd (2) sha I l be
tra nsferred to the ownership of the state a nd put at the disposa l of the license holder with the right of use.

CHAPTER V
PRODUCTION, STORAGE, TRANSMISSION, DISTRIBUTION
AND SUPPLY OF GAS

Article 24. Co-ordination of the activities of the gas system

(1) The gas entities shall function in a co-operating gas system. In the interest of the operation of the co-operating gas system the transmission and distribution entities and suppliers shall co-operate on the basis of the market economy principles and unique
operational control over the gas system.
(2)    Subject to conditions contained in licenses and to regulations of ANRE, the gas
entities together with the suppliers shall elaborate the rules concerning: a) the conditions of co-operation within the gas system, b) the a pplica tion of restrictions in relationships between parties. (3) The lega l rela tionship between the pa rticipa nts to the ga s ma rket sha I l be esta blished in contra cts in a ccorda nce with the license conditions a nd the regula tions issued by ANRE.

Article 25. Production of gas and operation of gas storage

(1) All ga s producers a s well a s those tha t opera te the ga s stora ge h ave the right to pa rticipa te in the ga s ma rket on condition tha t the technica l requirements for connection to the ga s network a re sa tisfied, the qua l ity of supplied g a s corresponds to the sta nd a rd
in force.
(2) The License for the gas production a nd stora ge is va l id unless the Agency withdra ws it due to the brea ch of the license. The license ca n be ca ncelled by the Agency after 25
yea rs of the presenta tion of a written notice.

Article 26. Transmission and distribution of gas

(1) Every licensee or consumer ha s the right of a ccess to the ga s tra nsmission a nd distribution networks without discrimination.
(2) The gas transmission or distribution entity is obliged to transport gas to the place of destination in accordance with the conditions defined in the contract concluded between parties, license conditions and regulations issued by the Agency.
(3)    The gas transmission entity as well as the gas distribution entity may also be a
supplier.
(4) The gas transmission and distribution entities shall perform the duties of the dispatching activity in order to manage the volumes of gas defined in the contracts concluded between the participants of the gas market.
(5) The gas trans miss i on entity as well as the gas dist ribution entity s hall answer any claim relevant to its activity during a period of 15 days reckoned from the moment when
the claim was registered.
(6) The License for gas transmission and distribution is valid unless the Agency withdraws it due to breach of the License. The license can be cancelled by the Agency after 25 years of the presentation of a written notice.
(7) The license holder for the gas transmission and distribution wiil operate its transmission networks in accordance with the conditions stipulated in the license and
effective technical rules.

Article 27. Supply of gas

(1) The supplier is obliged to deliver gas to consumers in accordance with the stipulations of the license and Chapter VI.
(2)    Except the markets considered by the Agency to be competitive the supplier shall
purchase gas at the lowest level of taritfs that are consistent with reliable gas supply.
The contracts regarding the purchasing of gas by the supplier in a market considered by the Agency to be non-competitive shall have to be approved by the Agency.
(3)    The supplier shall undertake responsibility for any damages related to a failure by
the supplier to obey the g a s qu a l ity sta nd a rds in force.

Article 28. Extension of gas networks

(1) The transmission and distribution entities are responsible for the optimal extension of their gas networks in accordance with the increase of gas demand.
(2) The transmission and distribution entities are responsible for connecting their networks to other licensees or consumers requesting a gas service connection from the transmission or distribution networks, subject to paragraph (5) below.
(3) Expenditures for the extension of the transmission network system wiil be covered by the transmission entity and they wiil be taken into consideration on taritf calculation, if the latter is done according to license conditions or regulations issued by the Agency.
(4) Expenditures for the extension of the distribution network system wiil be covered by the distribution entity and they wiil be taken into consideration on taritf calculation for distribution of gas, if the latter is done according to license conditions or regulations
issued by the Agency.
(5) The transmission and distribution entities may require from other licensees or consumers who require an extension of transmission or distribution networks to meet their specific needs financial support for the design and construction of such networks, if the latter is done according to license conditions or regulations issued by the Agency.
(6) Any entity which obtains a transmission or distribution license from the Agency may conduct its licensed activity in any limited territory in Moldova where there is no other gas service licensee providing similar services. The Agency shall establish regulations to encourage maximum availability of gas service in Moldova and to avoid service area
conflicts between licensees.

CHAPTER VI LEGAL RELATIONSHIPS BETWEEN GAS MARKET
PARTICIPANTS

Article 29. Legal relationships

(1)    For gas markets determined by the Agency to be non-competitive the Agency shall elaborate and adopt regulations that control the legal relationships between the participants in gas market.
(2)    For the gas markets determined by the Agency to be competitive, the legal relationships between the gas suppliers and purchasers shall be established within the conditions of the contract signed between these parties.

Article 30. Gas supply contract

(1)    The gas shall be supplied only on the basis of a contract concluded between the consumer and the supplier. The contract wiil include the effective date and terms of the contra ct, specify the ca ses of brea ch of contra ct, suspension a nd limitation of contra ct a s well a s other responsibilities of the suppliers a nd purcha sers of ga s.
(2)    The provisions of the contra cts ma y be further deta i led a nd completed in a ppendixes a nd other a dditiona l documents.
(3)    The consumers a re entitled to conclude individua l contra cts of ga s supply with a ny supplier including the suppliers from outside the borders of the Republic of Moldova.
(4)    Consumer requirements concerning purchasing natural gas and revision of existing contracts wiil be considered and satisfied by the appropriate licensee taking into account technical feasibility.

Article 31. The effects of the gas supply contract

(1)    The supplier is obliged to ensure the continuous supply of gas - of the parameters stipulated in the standards in force- according with the conditions contained in the contra ct.
(2)    The opera tion of consumer equipment sha I l not enda nger life, hea l th a nd property a nd desta bilize the proper opera tion of the gas entity a s well a s the receipt of gas by other consumers.

Article 32. Suspensions and restrictions in supply of gas

(1)    The gas entities are entitled to suspend the supply of gas for the shortest possible period when the life of people and property are endangered, there are not observed the established regimes of gas consumption, there are operational breakdowns in the operation of the gas networks as well as for carrying out connections and other maneuvers that cannot be performed otherwise.
(2)    The gas entities shall inform the consumers in advance of the date and expected duration of suspension of gas supply caused by maintenance and elimination of the consequences of faults.
(3)    The gas entities are entitled to restrict or suspend the supply of gas in case of gas crisis at the national scale or because of the interests relevant to foreign trade, national economy, environmental protection and national defense.
(4)    The gas entities shall not compensate the damages caused as a result of suspensions and restrictions carried out because of circumstances listed in point (3) of the present
Article if the actions of the supplier have complied with the points (1) and (2).
(5) Transmission and distribution entities may suspend or terminate gas supply to a customer or other licensee for failure to comply with applicable contracts.

Article 33. Measurement of gas consumption and payment settlement

(1)    The license holders for gas transmission and distribution are responsible for the installation, operation, maintenance and periodic recalibration of the gas meters of consumers connected to their network.
(2)    The license holders for gas transmission and distribution shall meter the quantity of supplied gas in accordance with the standards in force. The supplier is obliged to utilize only tested meters.
(3)    The consumer shall:
(a)    pay for connection; and
(b)    pay for gas consumed based on meter readings and concluded contracts.
(4)    The contracting parties may initiate an unplanned testing of the gas meter. In case
the complaint has not been proved the complainant shall incur the expenses related to
this unplanned testing. If the complaint has been proved then there shall be performed a
new payment settlement.

CHAPTER VII
GAS TARIFF REGULATION

Article 34. Tariffs of gas

(1)    Regula ted ga s ta ritfs sha I l be ca l cula ted a nd a pplied by the respective license holders a ccording to a methodology esta blished beforeha nd.
(2)    The methodology of ca l cula tion a nd a pplica tion of ta ritfs sha I l be ela bora ted a nd
a pproved by the Agency in a ccord a nce with esta blished process for definite periods of time.
(3)    The methodology of regulated ta ritf ca l culation sha I l includethe ca l culation of the
expenditures:
a ) rela ted to the cost of service;
b)    rela ted to efficient development of the ga s entities;
c)    rela ted to the fulfilment of the obligation rega rding the environment protection;
d)    the necessa ry profit in order to continue the a ctivity of the license holders;
(4)    The methodology of regulated ta ritf ca l culation should conta i n the sta te policy concerning the development of the nationa l ga s system, as well a s the tra nsit, the import a nd the export of gas and to promote a relia ble supply of gas at minimum costs as well as the efficient utiliza tion of the production ca pa cities.
(5)    The license holders sha I l provide the Agency with a I l information that is necessa ry for the a ctivity of supervising the correctness of costs a nd ca l culations of regulated ta ritfs.

CHAPTER VIII FINAL AND TRANSITORY PROVISIONS


Article 35. Settlement of disputes

The settlement of disputes between the contra cting pa rties except Art. 12(2), the disputes between the pa rties sha I l be solved in the court of la w.

Article 36. Final provisions

(1)    The Agency may a mend a license, without the a greement of the licensee, during the first year after publication of this Act provided such a mendment is necessary to protect the interest of licensees a nd consumers.
(2)    The Government within two months shall:
a ) submit the proposals to the Parliament in order to a mend the legisla tion in force in
concorda nce with the present Act; and
b) a mend its lega l rules a ccording to the present Act.


Chairman of Parliament
Dumitru Diacov
Chisina u, Spetember 17, 1998
Nr.136-XIV
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