**UNOFFICIALTRANSLATION**
**Current as ofDecember 20, 1999**
 
 
THE REPUBLIC OF MOLDOVA
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**Gas Act**
 
The Parliament adopts this organic act.
 
The present Act establishes the basicprinciples of the organization and regulation of the activitiesregarding the production, storage, transportation, distributionand supply of gas as well as the institutional system of theprotection of consumers.
 
The goal of theAct is to set up the legal framework of an effective competitionin the gas market in order to increase the efficiency of the gasindustry.
 
 
CHAPTER I
 GENERAL PROVISIONS
 
**Article 1. Thescope of the Act**
 
(1)   The scope of the present Actshall cover the following:
 
a)      productionand storage of combustible gases (hereinafter: gas);
b)     transportation anddistribution of gas;
c)      gas supplyactivities, including gas import and export and gas transit;
d)     prices for gas andregulations for the gas industry;
e)      licensing
f)      protectionof the interests of consumers;
 
(2) The presentAct regulates the legal relationships between the partners in thegas market: gas entities, suppliers and consumers.
 
(3) The scope ofthe present Act shall not extend to the utilization of bottledgas. The utilization of bottled gas shall be regulated inaccordance with a Government Decree.
 
 
**Article 2.General conditions**
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Gas shall beproduced, stored, transported, distributed and supplied in anefficient way from the economic point of view observing thelegislation regarding the safety of property, environment andlabor protection as well as other laws and regulations in forcein the interests of the national economy and consumers.
 
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**Article 3.Definition of terms**
 
For the purposeof the present Act there are utilized the following terms:
 
1. Consumer
-natural (private) person or legal entitywhose gas consuming installations are connected to the gasnetwork through one or more connection points.
 2. Consumer equipment
-the installations of the consumer and theconsumer gas network situated downstream from the connectionpoint.
 
3. Connection point
-the place where the consumer equipment isconnected to the  gas network and that is the boundary ofthe property  of the consumer and the gas entity or thesupplier.
 
4. Cost of service  
    Minimum costs
-actual costs necessarily and reasonablyincurred during the performing of an activity.
 
5.  Distribution entity
-legal entity who has been given the licensefor the distribution of gas.
 
6. Distribution point
-an object of the distribution network thatserves the purpose of gas transfer  from the pipelines ofhigh or medium pressure to the pipelines of medium or lowpressure.
 
7. Gas entity
- a legal person engaged in the production,storage, transportation and gas distribution.
 
8. Gasdistribution network
-a system consisting of high, medium and lowpressure gas pipelines and other equipment and distributionpoints situated downstream from the distribution station andupstream from the connection point that  serve in theaggregate the purpose of  distribution  of a supply ofgas to the connection points.
 
9. Gas distribution station
-the installations that belong to the gastransportation networks and serve the purpose of gastransfer  from high pressure pipelines to distributionpipelines of high, medium or low pressure.
 
10. Gas meter
-apparatuses and the combination of devicesthat serve to measure the volumes of gas transported through thetransportation and distribution networks as well as the volumesof gas utilized by the consumers.
 
11. Gas network
-gas transportation and distributionnetworks.
 
12. Gas producer
-legal entity who has been given the licenseto extract gas as a natural resource from the territory of theRepublic of Moldova   or to produce it artificially.
 
13. Gas system
-the totality of the elements of the chainof production, storage, transportation, distribution andutilization of gas.
 
14. Gas transportation network
 
 
-a system consisting of high pressure gaspipelines, stations for compression, distribution and measurementthat serve in the aggregate the purpose of  gastransportation.
 
15. Natural monopoly
-activity aimed at transportation and supplyof gas in the course of the  performance of which marketrules are absent or do not operate adequately because the consumer has no other choice.
 
16. Pay for connection
- payment for meter procurement, testing andinstallation, as well as for other equipment, apparatus and pipesto the consumer necessary to satisfy requirements for connectionsto the transportation and distribution grids.
 
17. Storage
-the activity related to storing gas.
 
18. Supplier
-a legal entity who has been given licensefor acquisition and for sale of  a supply of  gas atregulated and unregulated tariffs.
 
19.  Supply
-acquisition  and selling the gas
 
20.  Transportation entity
-legal entity who has been given the licensefor the transportation of gas.
 
 
 
**CHAPTER II**
 
ADMINISTRATIVE COMPETENCE AND PROTECTION OF CONSUMERS
 
**Article 4.Responsibilities of the State.**
 
The policy of theoperation and development of the gas system of the Republic ofMoldova is implemented by Government as follows:
a)      Establishesthe strategy (program) of the extraction and utilization of gasfrom gas fields find on the territory of the Republic of Moldovaand the strategy for the development of the main gas pipelinesincluding joint projects with other states. Assures energysecurity of the state.
b)     Establishes theconditions regarding the import, export and transit of gas;
c)      Approves theconstruction of the main gas pipelines;
d)     Approves theconstruction of artificial gas storage with the capacity thatexceed 0.1 million cubic meters as well as of gas storage basedon the utilization of natural (underground) reservoirs.
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**Article 5. The National Agency forEnergy Regulation** 
 
(1) Thegas system shall be regulated by the National Agency for EnergyRegulation, hereinafter: Agency.
 
(2) TheAgency is a permanent public body with the status of a legalentity that is not subordinated in any way in its activity to anyother government or private agency or institution, except thestipulations of Art. 5 (3) and Art. 8 (p.3, 4, 5, 8) and art.9(4).
 
(3) TheGovernment in accordance with the present act shall approve theRegulation of the Agency.
 
**Article 6. Thetasks and main duties of the National Agency for EnergyRegulation**
 
(1) The Agencyhas the following obligations:
 
a)      license theproduction of gas, gas storage operation, transportation,distribution and supply of gas as well as activities which assurethe increase of efficiency and competition on the gas market,
b)     control themeeting of requirements and the quality of services;
c)      in casesstipulated in the present Act amends or withdraws the licensesmentioned in Art 6, 1,a;
d)     elaborates andapproves in accordance with the established process themethodology of calculation of regulated gas tariffs, and approvesregulated gas tariffs;
e)      supervisethe correctness of calculation- of the regulated gas tariffs-performed by the license holders according to the provisionsdefined in the license;
f)      monitors thebusiness of the agents that act in the gas market;
g)      defines theeconomic technique data and data that provide the functioning ofgas system in the whole, that shall be made public by the licenseholders, taking in consideration their confidentiality;
h)     promotes thecompetition in the gas market;
i)      establishes  the accounting model and information system tobe used  by the license holders to report to the Agency, incompliance with the National Standard Accounting System.
 
 
**Article 7. Therights of the Agency**
 
(1) In theinterest of the fulfillment of its duties stipulated in thepresent Act the Agency is entitled:
a)      to controlthe observance of the conditions, stipulated in the license, bythe license holders;
b)     to control thecorrectness of application of regulated tariffs by the licenseholders;
c)      to haveaccess to the documents concerning the activities subject tolicense even in case they contain state or business secrets;
d)     to obtain copies,abstracts of such documents and request additional informationfrom the  license holder in order to fulfill its duties;
e)      to enforcethe principle of minimum costs regarding the production,transmission, distribution and supply of gas;
f)      to issueregulations in order to perform its duties in the most efficientway;
g)      to exactfines.
 
(2) The Agencymay also have other rights stipulated in its regulations andlegislation in force.
 
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**Article 8.Administration of the Agency**
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(1) The Agencyshall be managed by the Administration Council consisting of 3Directors.
 
(2) The decisionof the Administration Council shall be taken by a majority ofvotes. Each Director of the Administration Council has one vote.
 
(3) The Directorsof the Administration Council shall be appointed by theGovernment 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, oneDirector for a term of 4 years and one Director for a term of 6years.  The Government of the Republic of Moldova shallappoint a Director of the Administration Council every 2 years orwhenever a term, for any cause, becomes vacant, in which case thenew Director shall serve the remaining time of the unexpiredterm. No person shall serve as a Director of the AdministrationCouncil for more than 12 years and no person shall be appointedDirector after having served as a Director for more than 6 years,including any time remaining on the current term of the Director.
 
(4) A Directormay be dismissed by the Government of the Republic of Moldovaonly if he/she resigns, looses the citizenship of the Republic ofMoldova, is not able to fulfill his/her duties by reason ofhealth, is elected in an other function, is convicted by thecourt, violates systematically his/her obligations, violates thelegislation in force.
 
(5) TheGovernment of the Republic of Moldova shall designate one of theDirectors as General Director of the Agency’sAdministration Council.
  
(6) The GeneralDirector shall engage and direct the staff of the Agency beingsupported 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 AdministrationCouncil shall not:
     a) hold any officeor position;
     b) be ashareholder, debtor or creditor;
     c) receive orexpect to receive any compensation or other financialconsideration;
     d) attempt toobtain employment for any person or himself.
 
(8) The General Director shall present areport regarding the activity of the Agency in the previous yearto the Parliament and the Government of the Republic Moldova.
 
 Article 9 The Agency’s budget.
 
(1) By November 15 of each year, theAgency will prepare its detailed budget for the next year on thebasis of:
a)      annualregulatory fees applied by the Agency to license holders;
b)     fees forlicense issuance;
c)      othersources provided by the legislation.
 
(2) The Agency will establish theregulatory fees level in the basis of valuation of gas volumesfor the next year, received from the license holders untilNovember 1, and that will be sufficient to cover all thebudgetary expenditures of the Agency during the next year. Todetermine the level of regulatory fees for the production,transportation, distribution, gas supply at regulated andnon-regulated tariffs, there will be applied the followingprinciples:
 
-       in the case of gas production (accumulation) entities the feeswill be imposed on the gas volume produced (stored);
-       in the case of gas transportation entities, the fees will beimposed on the gas volume delivered to the distribution networks;
-       in the case of distribution entities, the fees will be imposed onthe gas volume delivered to the final customers;
-       in the case of gas supply entities the fees will be imposed onthe delivered volumes.
 
 
(3) The regulatory fees, paid by licenseholders, will be transferred on the current account of theAgency, which is the sole user of these funds. In the case wherethe Agency’s funds are not fully utilized during thecurrent year of regulation, then they should be transferred andincluded in the next year budget; in the case where it occurs adeficit of funds during the current year of regulation, theAgency is entitled to reimburse it from the next year budget,applying an appropriate regulatory fee. The Agency is entitled tocontract loans at reasonable rates of interest to cover thecurrent costs that can not be covered by the collected regulatoryfees. The Agency will reimburse the funds received from theregulatory fees applied.
 
(4) TheAgency’s budget will be approved by the Minister of Financeat the level of 0.06-0,09% from the annual cost of the energy andnatural gas supplied to customers. The Agency’s budget willbe published in the republican mass media.
  Article 10. Financial report
 
By March 1 ofeach year, the ANRE will prepare a financial report which willinclude both the accounting data of the regulatory feestransferred by the license holders on the current account of theAgency, and the Agency’s expenditures during the previousyear. The financial report will identify all the loans contractedby the Agency during the given regulation year as well as otherfunds utilized by the Agency. The financial report will bepublished in the republican mass media.
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** **
**Article 11. Protection ofconsumers**
 
(1) In the course of the performance ofits activities the Agency shall:
a)       pay regularattention to matters affecting the interests of consumers;
b)      elaborate detailedrules regarding the protection of consumers;
c)       investigatethe complaints of consumers;
d)      co-operate with theorganizations that represent the interests of consumers;
e)       provide theorganizations which protect the interests of consumers as well asthe consumers with necessary data and relevant informationregarding the activity of license holders excepting theconfidential information;
f)       decide indisputed matters both between consumers and suppliers, andbetween consumers and transmission and distribution entities.
 
(2) The consumersmay address a claim to the Agency concerning any matters withinthe authority of the Agency including the quality of servicesprovided by a gas entity or a supplier. The Agency shall examinethe mentioned complaints and will take respective measures withinthe limits of its authority.
 
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**Article 12.Transparency of the Agency’s activity. Decisions of theAgency**
 
(1) TheAdministration Council shall perform its duties so in order toensure the transparency of its activity. In this order:
 
a)      theAdministration Council’s sessions will be public;
b)     The interestedParties will be informed in advance about the agenda of theAdministration Council’s session. Both, the interestedParties and the public at large will have free access to theexamination of problems in discussion. In case when the problemsunder discussion are confidential, they will be examined atclosed-door meeting, the session’s decisions beingaccessible to every interested party.
 
(2) In the event of a disagreement betweena licensee and a consumer or another licensee, involving a matterwithin the jurisdiction of the ANRE which cannot be resolvedthrough negotiation, the matter of disagreement shall be analyzedby the ANRE in order to make a decision within the scope of itsauthority.
 
(3) A decision ofthe Agency may be appealed to Court according to effectivelegislation. 
 
(4) The licenses issued by the Agency as wellas its decisions of public interest shall be published in theMonitorul Oficial of the Republic of Moldova.
 
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**CHAPTER III**
 
LICENSING
 
**Article 13.Activities subject to license**
 
(1) Production ofgas, gas storage operation, transportation, distribution andsupply of gas are activities subject to license. There can belicensed other activities of the gas industry if doing so it isstimulated the competition in the gas market.
 
(2) The activityconnected to operation of gas storage of the capacity under 0.1million cubic meters is not subject to license.
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**Article 14.The conditions for licensing**
 
(1) To performthe activities stipulated in the Article 13 there shall be issuedlicenses to economic entities that are legal entities and if theysatisfy the following conditions:
 
-       are registered in the Republic of Moldova;
-       prove that they have financial and technical sources as wellprofessional training to ensure a normal performance of thelicensed activity;
 
(2) The managerof the enterprise, that is license holder, shall have to meet thefollowing requirements:
 
-       to be able to perform his/her duties,
-       to have permanent residence in the Republic of Moldova,
-       to have no previous convictions relevant to the activityregulated by the present Act,
-       not to be punished earlier - according to the criminal code - forthe deeds - intentionally done,
-       higher education with a technical bias and at least 5 yearsexperience in the field.
 
(3) There shallnot be issued licenses to economic entities that undergobankruptcy or liquidation procedures, as well as to economicorganizations whose licenses were withdrawn earlier for reasonsprovided in Art.17 (2), b, c, d, e, and there has not yet passed10 years from the moment of the withdrawal.
  Article 15. Types of licenses
 
(1) The Agency isentitled to issue the following types of licenses:
a)      license forproduction of gas;
b)     license for theoperation of gas storage facilities;
c)      license fortransportation of gas;
d)     license fordistribution of gas;
e)      license forthe gas supply at regulated tariffs;
f)      license forthe gas supply at non-regulated tariffs;
g)      licensesnecessary for the promotion of competition in the gas market toreduce the tariffs and protect the consumers.
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(2) The licensesfor each type of the activity and the Regulation on licenseissuance shall be approved by the Administration Council of theAgency and shall include among other data and information theconditions concerning the calculation of tariffs and therequirements regarding the quality of services.
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**Article 16.The rights and the obligations of a license holder**
 
(1) The licenseholder is obliged:
a)      to fulfillthe conditions stipulated in the license;
b)     to observe theprinciple of minimum costs presenting the detailed calculationsproving it to the Agency in the case where the Agency decides onthe non-competitiveness of the gas market;
c)      to fulfillits obligations defined in the license without discriminatingagainst any market participant  or consumers;
d)     to providecontinuous services except the cases stipulated in the licenseand in case of non-payment, technical and safety problems, and inaccordance with the terms of contracts;
e)      to presentto the Agency annual reports on their activity during theprevious year according to a form and terms established by theAgency. At the Agency’s request, the license holders willsubmit any other information necessary for the Agency’soperation under the effective legislation;
f)      to pay on aregular basis the regulatory fees.
 
(2) In the case where the legal or physicperson do not fulfill its obligations of payment in accordancewith the concluded agreement or the conditions on servicerendering, the license holder can not be obliged by any public orprivate authority to provide such kind of services.
 
(3) Licensee hasfree access to the natural gas meters located on the premises ofcustomers with whom Licensee has a contract to provide a supplyof natural gas.
 
(4) The licenseholder is prohibited from purchasing shares of another licenseholder without the Agency’s written approval.
 
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**Article 17.Amendment and withdrawal of the license**
 
(1) The licensemay be amended on the initiative of the ANRE or the licenseholder and with the agreement of the other party in the event ofsubstantial changes in circumstances.
 
(2) The Agencymay withdraw the license definitely or temporarily in case:
a)      the licenseholder requests the withdrawal of the license;
b)     the license holderis declared bankrupt and is unable to fulfill itsresponsibilities;
c)      the licenseholder obtained the license fraudulently;
d)     the license holderdoes not observe the conditions stipulated in the license;
e)      the licenseholder breaks the present Act and the legislation in force in the course of the performance of its activity.
 
(3) In the eventof license’s withdrawal the Agency is obliged to takemeasure in order to ensure reliable and efficient supply of gasto consumers.
 
(4) The Agency’s decision on theamendment or withdrawal of the license can be argued in theCourt.
 
 
**Article 18.Merger or separation of gas entities**
 
Merger of gasentities, merger of gas entities with other economicorganizations and associations, and separation or division of thegas entities or gas suppliers shall be done only with theapproval of the Agency if such a merger, separation or divisioncould influence regulated tariffs.  Upon the entitiesobtaining the appropriate approval, theAgency may amend the license conditions.
 
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**CHAPTERIV                    **
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RIGHTS TO OTHER PARTIES REAL ESTATE
 
**Article 19.General rights**
 
(1) A gas entitylicense holder is entitled to apply to the authorized bodies for:
a)      the right ofpreparatory work;
b)     right of cabling;
c)     expropriation;
d)     other necessaryauthorizations.
 
(2) The licenseholder is obliged to recompense the damages caused to the ownerof the real estate or other property as a result of preparatorycabling works, construction, installation, repair and theelimination of the consequences of the faults.
 
(3) In order toprevent or eliminate a real or imminent accident the owner or theuser of the real estate shall permit the gas entities to utilizeits real estate as required.
 
(4) In the areasunder nature protection the rights listed in point (1) shall notbe exercised unless a preliminary permission from the competentnature protection authority is obtained.
 
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**Article 20. Right of preparatorywork.**
 
In connection with the construction ofthe gas networks the gas entity may apply for a permission forright of preparatory work.
 
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**Article 21.Right of cabling**
 
(1) The right ofcabling permits the license holder of the gas entity to performthe construction, installation, repair and replacement of the gaspipelines, compressor stations, distribution stations anddistribution points and other equipment of the gas networks.
 
(2) The right ofcabling ceases if the construction of the gas objects is notfinalized in 5 years.
 
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**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 estateon the basis of the right of use.
 
(2) The right ofuse is established on the basis of an agreement with the owner ofthe real estate.
 
 
(3) In case therecannot be reached an agreement concerning the establishment ofthe right of use the license holder may request the support ofcompetent authority to solve the problem.
 
(4) The right ofuse ceases in case the construction of the objects defined inpoint (1) shall not been finalized within 5 years reckoned fromthe date the right of use was authorized.
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**Article 23.Expropriation**
 
(1) In case thelicense holder has not been able to obtain the right of use inorder to build the compressor station, distribution station anddistribution points and other objects of public use it isentitled to initiate the procedure of the expropriation of thereal estate of the other owner according to the legislation inforce.
 
(2) In order toconstruct and operate the gas pipelines, the procedure ofexpropriation may take place only if the license holderdemonstrates that the right of cabling stipulated in Article 21hinders substantially or even terminates the proper use of thereal estate.
 
(3) The realestate expropriated in accordance with points (1) and (2) shallbe transferred to the ownership of the state and put at thedisposal of the license holder with the right of use.
 
 
**CHAPTER V**
 
PRODUCTION, STORAGE, TRANSPORTATION,
DISTRIBUTION AND SUPPLY OF GAS
 
**Article 24. Co-ordination of theactivities of the gas system**
 
(1) The gasentities shall function in a co-operating gas system. In theinterest of the operation of the co-operating gas system thetransportation and distribution entities and suppliers shallco-operate on the basis of the market economy principles andunique operational control over the gas system.
 
(2) Subject to conditions contained inlicenses and to regulations of ANRE, the gas entities togetherwith the suppliers shall elaborate the rules concerning:
a)      theconditions of co-operation within the gas system,
b)     the application ofrestrictions in relationships between parties.
 
(3) The legalrelationship between the participants to the gas market shall beestablished in contracts in accordance with the licenseconditions and the regulations issued by ANRE.
 
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**Article 25.Production of gas and operation of gas storage**
 
(1) All gasproducers as well as those that operate the gas storage have theright to participate in the gas market on condition that thetechnical requirements for connection to the gas network aresatisfied, the quality of supplied gas corresponds to thestandard in force.
 
(2) The Licensefor the gas production and storage is valid unless the Agencywithdraws it due to the breach of the license. The license can becancelled by the Agency after 25 years of the presentation of awritten notice.
 
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**Article 26.Transportation and distribution of gas**              
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(1) Every licensee or consumer has the rightof access to the gas transportation and distribution networkswithout discrimination.
 
(2) The gas transportation or distributionentity is obliged to transport gas to the place of destination inaccordance with the conditions defined in the contract concludedbetween parties, license conditions and regulations issued by theAgency.
 
(3) The gastransportation entity as well as the gas distribution entity mayalso be a supplier.
 
(4) The gastransportation and distribution entities shall perform the dutiesof the dispatching activity in order to manage the volumes of gasdefined in the contracts concluded between the participants ofthe gas market.
 
(5) The gastransportation entity as well as the gas distribution entityshall answer any claim relevant to its activity during a periodof 15 days reckoned from the moment when the claim wasregistered.
 
(6) The License for gas transmission anddistribution is valid unless the Agency withdraws it due tobreach of the License. The license can be cancelled by the Agencyafter 25 years of the presentation of a written notice.
 
(7) The license holder for the gastransmission and distribution will operate its transportationnetworks in accordance with the conditions stipulated in thelicense and effective technical rules.
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**Article 27.Supply of gas**
 
(1) The supplieris obliged to deliver gas to consumers in accordance with thestipulations of the license and Chapter VI.
 
(2) Except themarkets considered by the Agency to be competitive the suppliershall purchase gas at the lowest level of tariffs that areconsistent with reliable gas supply. The contracts regarding thepurchasing of gas by the supplier in a market considered by theAgency to be non-competitive shall have to be approved by theAgency.
 
(3) The suppliershall undertake responsibility for any damages related to afailure by the supplier to obey the gas quality standards inforce.
 
 
**Article28.**   **Extension of gas networks**
 
(1) Thetransportation and distribution entities are responsible for theoptimal extension of their gas networks in accordance with theincrease of gas demand
 
(2) The transmission and distributionentities are responsible for connecting their networks to otherlicensees or consumers requesting a gas service connection fromthe transport or distribution networks, subject to paragraph (5)below.
 
(3) Expendituresfor the extension of the transport network system will be coveredby the transmission entity and they will be taken intoconsideration on tariff calculation, if the latter is doneaccording to license conditions or regulations issued by theAgency.
 
(4) Expendituresfor the extension of the distribution network system will becovered by the distribution entity and they will be taken intoconsideration on tariff calculation for distribution of gas, ifthe latter is done according to license conditions or regulationsissued by the Agency.
 
(5) The transportand distribution entities may require from other licensees orconsumers who require an extension of transport or distributionnetworks to meet their specific needs financial support for thedesign and construction of such networks, if the latter is doneaccording to license conditions or regulations issued by theAgency.
 
(6) Any entitywhich obtains a transportation or distribution license from theAgency may conduct its licensed activity in any limited territoryin Moldova where there is no other gas service licensee providingsimilar services. The Agency shall establish regulations toencourage maximum availability of gas service in Moldova and toavoid service area conflicts between licensees.
 
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**CHAPTER VI**
 
LEGAL RELATIONSHIPS BETWEEN SUPPLIERS AND CONSUMERS
 Article 29. Legal relationships
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(1) For gas markets determined by theAgency to be non-competitive the Agency shall elaborate and adoptregulations that control the legal relationships between theparticipants in gas market.
 
(2) For the gasmarkets determined by the Agency to be competitive, the legalrelationships between the gas suppliers and purchasers shall beestablished within the conditions of the contract signed betweenthese parties.
 
A**rticle 30.Gas supply contract**
 
(1) The gas shallbe supplied only on the basis of a contract concluded between theconsumer and the supplier. The contract will include theeffective date and terms of the contract, specify the cases ofbreach of contract, suspension and limitation of contract as wellas other responsibilities of the suppliers and purchasers of gas.
 
(2) Theprovisions of the contracts may be further detailed and completedin appendixes and other additional documents.
 
(3) The consumersare entitled to conclude individual contracts of gas supply withany supplier including the suppliers from outside the borders ofthe Republic of Moldova.
 
(4) Consumerrequirements concerning purchasing natural gas and revision ofexisting contracts will be considered and satisfied by theappropriate licensee taking into account technical feasibility.
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**Article 31.The effects of the gas supply contract**
 
(1) The supplieris obliged to ensure the continuous supply of gas - of theparameters stipulated in the standards in force- according withthe conditions contained in the contract.
 
(2) The operationof consumer equipment shall not endanger life, health andproperty and destabilize the proper operation of the gas entityas well as the receipt of gas by other consumers.
 
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**Article 32.Suspension and restrictions**
 
(1) The gasentities are entitled to suspend the supply of gas for theshortest possible period when the life of people and property areendangered, there are not observed the established regimes of gasconsumption, there are operational breakdowns in the operation ofthe gas networks as well as for carrying out connections andother maneuvers that cannot be performed otherwise.
 
(2) The gasentities shall inform the consumers in advance of the date andexpected duration of suspension of gas supply caused bymaintenance and elimination of the consequences of faults.
 
(3) The gasentities are entitled to restrict or suspend the supply of gas incase of gas crisis at the national scale or because of theinterests relevant to foreign trade, national economy,environmental protection and national defense.
 
(4) The gasentities shall not compensate the damages caused as a result ofsuspensions and restrictions carried out because of circumstanceslisted in point (3) of the present Article if the actions of thesupplier have complied with the points (1) and (2).
 
(5)Transportationand distribution entities may suspend orterminate gas supply to a customer or other licensee for failureto comply with applicable contracts**.**
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**Article 33.Measurement of gas consumption and payment settlement**
 
(1) The licenseholders for gas transportation and distribution are responsiblefor the installation, operation, maintenance and periodicrecalibration of the gas meters of consumers connected to theirnetwork.
 
(2) The licenseholders for gas transportation and distribution shall meter thequantity of supplied gas in accordance with the standards inforce. The supplier is obliged to utilize only tested meters.
 
 (3) Theconsumer shall:        
(a)    pay for connection; and
(b)   pay for gas consumed based onmeter readings and concluded contracts.
 
(4) Thecontracting parties may initiate an unplanned testing of the gasmeter. In case the complaint has not been proved the complainantshall incur the expenses related to this unplanned testing. Ifthe complaint has been proved then there shall be performed a newpayment settlement.
 
 
**CHAPTER VII**
 
TARIFF REGULATION
 
**Article 34.Tariffs of gas**
 
(1) Regulated gastariffs shall be calculated and applied by the respective licenseholders according to a methodology established beforehand.
 
(2) Themethodology of calculation and application of tariffs shall beelaborated and approved by the Agency in accordance withestablished process for definite periods of time.
 
(3) Themethodology of regulated tariff calculation shall includethecalculation of the expenditures:
a)      related tothe cost of service;
b)     related toefficient development of the gas entities;
c)      related tothe fulfillment of the obligation regarding the environmentprotection;
d)     the necessaryprofit in order to  continue the activity of the licenseholders;
 
(4) Themethodology of regulated tariff calculation should contain thestate policy concerning the development of the national gassystem, as well as the transit, the import and the export of gasand to promote a reliable supply of gas at minimum costs as wellas the efficient utilization of the production capacities;
 
(5) The licenseholders shall provide the Agency with all information that isnecessary for the activity of supervising the correctness ofcosts and calculations of regulated tariffs.
 
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**CHAPTER VIII**
 
FINAL AND TRANSITORY PROVISIONS
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**Article 35.The settlement of disputes between the contracting parties**
 
Except Art.12(2), the disputes between the parties shall be solved in thecourt of law.
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**Article 36.Final provisions**
 
(1) The Agency may amend a license, withoutthe agreement of the licensee, during the first year afterpublication of this Act provided such amendment is necessary toprotect the interest of licensees and consumers.
 
(2) TheGovernment within two months shall:
a)      submit theproposals to the Parliament in order to amend the legislation inforce in concordance with the present Act; and
**b)    **amend its legal rules according to thepresent Act.
 
 
Chairman ofParliament
Dumitru Diacov
 
Chisinau,September 17, 1998
Nr.136-XIV