Problems And Tasks Of Legal Regulation Of Common Energy Markets Of The Eurasian Economic Union

 
PIIS23124350021928-2-1
DOI10.18572/2410-4396-2018-1-57-62
Publication type Article
Status Published
Authors
Occupation: Head of the Department of Energy Law
Affiliation: Kutafin Moscow State Law University (MSAL)
Address: Russian Federation,
Journal nameEnergy law forum
EditionIssue 1
Pages57-62
Abstract

Gradual formation of the common energy markets of the Eurasian Economic Union includes development and coordination of indicative (forecast) balances of gas, oil, and oil products of the union. The common energy market is formed step by step on the basis of electric power systems operating in parallel. The Treaty on the Eurasian Economic Union also provides for development of concepts and programs for the formation of the common energy markets. Upon completion of activities under the programs, the parties shall conclude international treaties: on the formation of a common electric power market, which shall include, among other things, uniform rules for access to services of natural monopoly entities, on the formation of a common gas market containing, among other things, uniform rules for gas transmission systems located in the territories of the member states, and on the formation of common markets of oil and oil products containing, among other things, uniform rules for access to the systems for transportation of oil and oil products. Certain work has already been done. The member states have currently developed and ensured approval by the Supreme Eurasian Economic Council of the Concept for the Formation of a Common Electric Power Market; the Concept for the Formation of a Common Gas Market, and the Concept for the Formation of the Common Markets of Oil and Oil Products. One of the most difficult tasks for preparation of relevant international treaties is to handle work on unification of uniform rules for access to services of natural monopoly entities. It should be taken into account that national legal regulation of relations concerning transmission and transportation of energy resources of the member states is different. For the development of uniform rules, thorough legal analysis of the laws of the member states of the Union and determination of the best provisions for incorporation into the uniform rules will be required. The article outlines possible provisions for incorporation into the uniform rules for access to the gas transmission systems that can also be included into the uniform rules for access to the systems for transportation of oil and oil products and used upon development of the uniform rules for access to services of natural monopoly entities in the electric power industry

Keywordsenergy law, international legal regulation in the electric power industry, common energy market of the Eurasian Economic Union
Received06.02.2018
Publication date30.03.2018
Number of characters17297
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1 At the scientific and practical conference devoted to the Analysis and Prospects of the Fuel and Energy Complex of the Member States of the Eurasian Economic Union in the Field of Energy Security, Energy Saving, Energy Efficiency, and Ecology, it was noted that creation of common markets will contribute to the uninterrupted energy supplies to the countries of the Union, and it was stressed that the member states develop long-term mutually beneficial cooperation in the energy sector and implement coordinated energy policy as a part of the phased development of the common energy markets. [1] Difficulties and disagreements in the work of forming the legal framework for the common energy markets result from the fact that some countries act mostly as suppliers, while others are consumers of energy resources. [2]
2 The Eurasian Economic Commission (EEC) together with the member states and the business community of the Eurasian Economic Union (hereinafter referred to as the Eurasian Economic Union, the EAEU, the Union) identified the existing obstacles on the domestic market of the Eurasian Economic Union, which were reflected in the Barriers, Exemptions and Restrictions of the Eurasian Economic Union report, the so-called White Book. [3]
3 In the Energy Policy section of the White Book, it is noted that the energy markets form about 30% of the total turnover within the Union and, accordingly, are significant for the mutual trade of the member states; supply of energy resources is a significant factor that influences the development of the national economy both for the exporting and the importing countries.
4 Among the barriers and exemptions in the energy sector, the White Book distinguishes the lack of unified and transparent approaches to determining technical capabilities of systems for transmission of oil, oil products, and gas located in the territories of the member states, the lack of unified and transparent approaches to determining the technical capabilities upon transmission of electricity in the territories of the member states, and the lack of unified rules for access to energy infrastructure.
5 Participants of scientific events and representatives of the Saint Petersburg International Mercantile Exchange (SPIMEX) also emphasize that the key component of the common gas market, and the common market of oil and oil products will be exchange trade; it is noted that there is every reason for development of exchange trade under the conditions of already functioning gas transmission system of the gas market of the EAEU, the potential of the market of oil products is also estimated as high. [4]
6 Current legal bases for the formation of the common energy markets of the Eurasian Economic Union are envisaged in Section XX of the Treaty on the Eurasian Economic Union, Annexes Nos. 21, 22, and 23 of the Treaty. Paragraph 1, Article 79 of the Treaty on the Eurasian Economic Union specifies the basic principles for the formation of the common energy markets including: ensuring market pricing for energy resources, ensuring development of competition in the common energy markets, lack of technical, administrative and other barriers to trade in energy resources, relevant equipment, technologies and related services; ensuring development of transportation infrastructure of the common energy markets; ensuring nondiscriminatory conditions for business entities of the member states in the common energy markets; creation of favorable conditions for attracting investments in the energy complex of the member states, harmonization of national norms and rules for functioning of the technological and commercial infrastructure of the common energy markets.
7

The barriers identified by the Eurasian Economic Commission do exist, which results from differences in the current models of legal regulation of the energy markets of the member states and certain gaps in international legal regulation.

8 Current models of legal regulation in such energy industries as gas, oil, and electric power industries have common features and differences.
9 Thus, according to the laws of the Republic of Belarus, the Republic of Kazakhstan, the Russian Federation, and the Kyrgyz Republic, transportation of oil and oil products through trunk pipelines is referred to the natural monopolies. In the Republic of Armenia, it is not the case.
10 Services for gas transportation through pipelines as well as services for transmission of electric power are referred to the natural monopolies in accordance with the laws of all member states of the Union.
11 At the same time, in accordance with the laws of the Republic of Kazakhstan, the natural monopolies also include services for storage and transportation of commercial gas through gas links, trunk pipelines and (or) gas distribution systems, operation of group tank units, and transportation of crude gas through gas links. [5] According to the laws of the Republic of Armenia, the natural monopolies also include services for distribution of natural gas; services of the operator of the gas supply system. Pursuant to the laws of the Kyrgyz Republic, the natural monopolies also include distribution, storage, and sale of natural gas. [6] Moreover, under the laws of the Republic of Belarus, the Republic of Kazakhstan, and the Kyrgyz Republic, the natural monopolies also include distribution of electric energy.

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5. Law of the Republic of Kazakhstan dd. July 9, 1998 № 272-I On Natural Monopolies // https: //online.zakon.kz/ Document/?doc_id=1009803#pos=0;0

6. Law of the Kyrgyz Republic dd. August 8, 2011 № 149 On Natural Monopolies in the Kyrgyz Republic // http: //cbd.min- just.gov.kg/act/view/ru-ru/203389

7. http: //www.eurasiancommission.org/ru/act/energetikaiinfr/energ/Pages/activity.aspx; https: //msal.ru/content/ ob-universitete/struktura/kafedry-vypuskayushchie/kafedra-energeticheskogo-prava/arkhiv-novostey/?hash= tab2993

8. Romanova V.V. Energy Law Order: Current State and Tasks. Moscow : “Yurist” Publishing House. 2016. S. 211-237.

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