In accordance with Federal Acts "On energy industry" and "On licensing of certain types of activities" the Russian Federation Government resolves:
1. To approve of attached Regulation on licensing of electrical energy sales to population.
2. Russian Federation Ministry on Industry and Energy should fix the minimal amount of capital of organizations engaged in electrical energy sales to population.
3. This Resolution comes into force on July 1, 2005.

Russian Federation Government
Chairman M.Fradkov

APPROVED
by Resolution of Russian Federation
Government
N 291 of May 6, 2005

                                                R E G U L A T I O N
                               on licensing of electrical energy sales
                                                  to population

1. This Regulation states the order of licensing of electrical energy sales to population.

2. Licensing of electrical energy sales to population is executed by Federal service of ecological, technological and nuclear monitoring (further on – licensing body).

3. Electrical energy sales to population involves activity of legal entities in selling electrical energy to population including set of procedures aimed at quality, continuous and stable supply of stated category of consumers with electrical energy.

4. Licensing requirements and conditions for implementing activities in selling electrical energy to population include:

à) observation of requirements of legal and other normative acts of the Russian Federation in the sphere of electrical energy, protection of consumers’ rights and technical regulation;

b) Licensing body personnel, where not less than 20 percent of staff has high or secondary vocational education in electrical energy sphere or other high or secondary education in case they have undergone profile training and have been worked in energy industry for not less than 3 years;

c) Separate accounting for purchased electrical energy, services in electrical energy transfer and other services being inseparable part of energy industry supplies;

d) Amount of licensing body's capital should not be less than amount specified by Federal executive administration in charge of formation of state policy in the sphere of fuel-energy complex.

5. In order to obtain a license for electrical energy sales to population (further on – license) the potential licensee should submit the following documents to licensing body:

à) application for granting the license stating the organization's name and organizational-legal form of legal entity, its location and location of its territorial separated branches and objects where the organization is going to implement licensed activities;
b) copies of foundation documents and documents that certify registering of legal entity in Unified state registry of legal entities;
c) Copy of certificate on registration of potential licensee by tax authorities;
d) document certifying payment of state duty for considering license application by licensing body;
e) copies of document certifying high or secondary vocational education of staff or other high or secondary education in energy industry in case they have undergone profile training and have been worked in energy industry for not less than 3 years.

6. Copies of documents stated in item 5 of this Regulation that are not verified by a notary are presented together with originals. Potential licensee is not obliged to present any other documents not stated in this Regulation.

7. Potential licensee is responsible for submitting invalid or distorted information in accordance with the Russian Federation legislation.

8. Documents submitted by potential licensee in accordance with item 5 of this Regulation are accepted by licensing body according to a list. Copy of the list with the date of documents acceptance is sent (handed) to potential licensee.

9. Licensing body has the right to check potential licensee suitability to license requirements and conditions.

10. Licensing body decides on granting or refusing license in time not more than 60 days from the date of application and all required documents acceptance. Licensing body director makes the resolution, and on the accordance of this resolution the licensee obtains the license within 3 days after the licensee certifies payment of state duty for license granting.

11. License is given for 5 years period. Validity of license can be prolonged in set order upon the licensee’s request.

12. Licensee’s observance of licensing requests and conditions are monitored via checkout held upon licensing body order. The order states the licensee's name, checkout time, activities during certain period of time that are subject for checkout and the checkout commission. Plannedmonitoringistobeheldoncein2 years. Monitoring time should not exceed 30 days.

13. Unscheduled check-out can be held:

Upon the complaint of customer who purchased electrical energy from the licensee on breach of licensing requests and conditions by licensee; upon obtaining information from physical and legal entities, government bodies about breach of licensing request and conditions that may cause harm and damage to rights, interests, people’s health, state defense and safety, cultural heritage of the Russian Federation ethnicities, and upon obtaining other information certified by documents or other proofs specifying these breaches;

To confirm that licensee eliminated breaches of licensing requests and conditions revealed during planned monitoring.

14. Licensee should provide conditions for monitoring, including necessary documents and information, grant access of inspectors into working premises and to software and technical equipment used while carrying out licensed activities.

15. Upon the results of monitoring the commission produces an act (stating specific infringements) that is signed by all members of the commission stated in item 12 of this Regulation. Licensee (or his representative) should be notified about the monitoring results and the act should state his notification. If licensee does not agree to monitoring results, he may state his opinion in the act. If licensee refuses to be notified about monitoring results, commission members write this down in the act and sign it.
Licensee has the right to submit his objections concerning the act to licensing body (in written form) attaching necessary documents.

16. Licensing body has the right to suspend the license in case of repeated breaches or serious breach of licensing requests and conditions. .
Licensing body states the time period for licensee to eliminate breaches that caused license suspension. Thisperiodshouldnotexceed6 months. In case licensee did not eliminate stated breaches, licensing body should apply to the court with the request to cancel the license.
Licensee should notify (in written form) licensing body about elimination of breaches that caused license suspension. Licensing body that suspended the license has to decide upon its renewal and notify licensee (in written form) within 3 days after obtaining of correspondent notification and checkout if licensee indeed eliminated breaches that caused license suspension.
Checkout of elimination of licensing requests and conditions breaches should start not later than in 10 days after licensee notifies about the elimination of stated breaches.

17. In case licensing requests and conditions breach caused harm and damage to rights, legal interests, people’s health, state defense and safety, cultural heritage of the Russian Federation ethnicities, the license can be canceled upon the court’s resolution according to request of licensing body.

Together with applying to the court licensing body has the right to suspend the license until the court’s resolution comes into force.

18. Licensee is obliged to fulfill his responsibilities on selling electrical energy to population until the court’s resolution comes to force if licensing body did not suspend the license.

19.  Licensing body has the licenses register stating:

à) name of licensing body;
b) licensed activity;
c) name, organizational-legal form of legal entity, its location, registry number of the document certifying registration of legal entity in Unified state registry of legal entities, identification number of tax payer and licensee code according to All-Russian classifier of enterprises and organizations;
d) date of resolution on granting license;
e) license number;
f) license validity;
g) information about registration of license in license registry;
h) information about license re-issuance;
j) reason and date of license suspension and renewal;
ê) reason and date of license cancellation.

20. While performing licensing activity licensing body is governed by the Federal Act "On licensing of certain types of activities" and this Regulation.