Legislative Decree of the President of Islamic Republic of Afghanistan

On Endorsement of Power Services Regulation Act

Article l: In pursuance of provision of Article 79 of  Afghan  constitution,  I endorse  the  Power Services : Regulation  Act  which has been approved in (12) Chapters  and (53) Articles based on the Approval No. 19 dated 26/08/2015 of the Cabinet of Islamic Republic of Afghanistan.

Article 2:

The Minister of Justice and Minister of State for Parliamentary Affairs shall be bound to Present this Decree to the National Assembly within (30) days after the first session of this Assembly.

Article 3:

This decrees hall come into force from the date of endorsement and shall be published in the Official Gazette along with the approval of the Cabinet and the said law.

Mohammad Ashraf Ghani

President of Islamic Republic of Afghanistan The Approval of the Cabinet of Islamic Republic of Afghanistan  on Power  Services Regulation Draft Act

No:19

Dated:04t h  ofAsad1394

I, endorse the Power  Services  Regulation  Draft  Act which  has been approved on 04/06/1394 by the cabinet of Islamic Republic of Afghanistan in twelve chapters  and fifty three articles.

Mohammad Ashraf Ghani

President of Islamic Republic of Afghanistan 

Power Services Regulation Act

Chapter 1

Basis Article 1:

. . .

General Provisions

This law has been enacted in the light of Provision of Article 10 of the Afghan constitution.

Objectives Article 2:

The objectives of this law shall be as following :

1-         To supply electrical energy from natural resources of the country and imported energy,

2-         To improve the quantity and quality of energy services, and its development and  promotion,

3-          Economic growth and development as well as public welfare,

4-         Public access to  the  electricity energy services in exchange fo a fair price,

5-          Non-discriminatory access of the electricity energy service providers to the market

1-    Electricity Energy Services: he services through which the electricity shall be supplied to consumers in exchange of a fixed price.

2-    Electricity Power Plants:  the , buildings and the  equipment  that  shall be  used for generation, transmission and distribution of electricity energy.

3-    Electricity Network: the systems by which the electricity energy shall be supplied  using equipment,  substations,  transformer  stations,  junctions, cables  lines and other re.lated equipment.

4-    License:  a wr itt e·n  permit  which  shall be issued to  the  applicant  in  accordance

with the provisions of this law for production, import, export, transmission and distribution of the electricity energy and other related activities.

5-    Contract: a written document that shall be concluded between the Ministry of Energy and Water and the holder of the license in accordance with  the provisions of this Law in order to construct and assemble the electricity energy facilities, and the rights and obligations of the parties shall be specified therein

6-    Tariff: the written document that shall be used on behalf of the permit holder in accordance with the provisions of this law, to determine the price of electricity consumption.

7-    Fees: financial fund received from license holder in exchange of each unit of production  or  transmission  or  distribution   or   import   and   or   export   of elect ricit y.

8-    Consumer: a natural or legal person/entity who demands and makes use of the electricity,  paying for  the  services included in the tariff.

9-    Distribution: Electrical Energy supply to the consumers through medium and low-voltage networks  and  in  exceptional  cases,  from  high  voltage  networks  up to  110 KV.

10-   Distribution Procedure: Technical rules and principles observing which, the operation responsibilities and technical design of all types of distribution networks of the substations, including the criteria on consumer connection to the network and transmission of electricity shall be described in compliance with the national and international standards.

11-   Power Distribution System: the total lines and equipment used in transmission of electricity to  the consumers  through medium  and low voltage.

12-  Electricity Dispatching Center: the center which functions to provide reliable and economic power, awareness, timing and to set and schedule production capacity,  and the  ability to import and transfer  the power.· 

14-   Market Dominant Force: a natural or legal person/entity holding license for electric energy services and having (40) percent or more of gross income of specified electrical energy market on the basis  of  the  assessment  Electric Power Regulation Department of the Ministry of Energy and Water considering certain categories of services  and geographical boundaries.

15-   Recognized Standard: the technical specifications and national, regional and international  standards  published in the  area of electricity power.

16-   Electricity Zone: a certain geographical area determined for the purpose of electricity  supply.

17-   Renewable Energy Sources: The stable, unlimited, and non-fossil provision of natural (hydro,  wind, solar, biomass  and geothermal) resources.

18-   Transmission System: The high voltage power transmission lines  and equipment  used to  transmit  the  electricity current.

19-   Land Area: a certain area in which the license holder makes construction and installation of electric power generation facilities, substations,  and  the transformer  stations in accordance  with the provisions  of  this law.

20-   Sub-area: a certain area not included in the license  but  the  license  holder carries out some  works  relating  to  transmission,  distributions,  import  and export of electricity to the  mentioned  area  on  the  basis  of  the  owner agreement  in accordance with the provisions  of this Law.

21-   Accident: a mishap occurred during construction act ivit ies, installation and operation of  facilities,  transmission,  distribution,  import  and  export  of electricity  resulting into physical and material loss, injuries or casualties .

22-   Confidential Information: the technical, financial and business documents and information belonging to design, restoration of insurance status, activities, planning, maintenance, management and financing  of  energy  services  and other activities related to the electricity facilities of suppliers,  users .and consumers.

23- Transmission System Operator: a person responsible for  operation, maintenance and development of transmission in certain areas , and interconnections with other networks  to  strengthen the  system in  long-term  to

6-    To address the complaints of consumers and license holders and to resolve disputes arising out of the mentioned issues in accordance with the provisions of this law.

7-    To create technical, economic, financial, and marketing committees, and other energy  advisory committees.

8-    To appoint auditors to take care of the provisions of this law and the terms set forth in the  license.

9-    To issue orders to prevent violations of the terms of licenses under this law. 10- To impose cash fine under this law.

11-   To establish a single calculating unit  system  for  transparent  calculation  of power  supply  and its control.

12-   To identify dominant personality in the energy supply market.

13-   To assign dominant personality in the market to provide electricity services to consumers and other license holders without discrimination under this law.

14-   To continuously monitor electrical energy services all over the co unt ry. 15- To create elect rical energy services dat abase .

16-   To monitor the activities of the license holders in order to comply with international conventions of power sector to which Afghanistan has accede d.

17-   To determine technical standards for electrical equipment and its  approval through  concerned  authorities.

18-   To regulate and monitor the activities of license holders in accordance with the provisions of this law.

19-   To protect the interests of electricity consumers.

20-   To prevent the abusage of dominant force in the market.

21-   To provide healthy competition environment for the license holders.

22-  To identify the contingent violations of the provisions of this law and the terms of the licenses.

23-   To oblige the license holders to compensate damages  arising from violation of the terms of licenses.

24-   To submit annual report to the office of the Ministry of Energy and Water. 25- To perform other duties stipulated in this law.

Chapter 2 Regulation of Energy Services

Article 8: 

(1)      Without obtaining the license and concluding contract, no one shall take action on construction, installation and assembly  of  the  equipment,  production facilities, t ran smissi on, distribution, import and export of Electricity power .

(2)      Real or legal persons/entities that avail the means of production of the electrical energy for their personal usage shall be exempted from the provisions of paragraph (1) of this Article, provided that the  technical conditions have been adhered in accordance with the accepted standards.

(3)      Energy services up to  one-hundred  kilowatts  that are supplied  for  rural areas by the real and legal entities shall be exempted  from  the  provisions  of paragraph (1) of  this Article.

Qualifications for Permit Applicant Article 9:

(1)  A person/entity may obtain the license set forth in this law  and  make  the contract  that  has the  following qualifications:

1-          Domestic  legal person  or entity  established in accordance  with the provision s of  Afghan laws and that has obtained the investment license.

2-         Foreign legal person or entity established in accordance with the provisions of  the laws of his/her/its  subject  country  and  that  has  obtained  investment license based on the provisions of law in Afghanistan.

3-         Having enough capital to provide machinery, equipment and  tools  and  necessary expertise to implement the terms of the license  .

4-         Provide a financial guarantee to the agency.

(2)    The following persons or entities may not  obt ai ·n  licenses under this law:

1-    Legal entity in which the persons set forth in. Article 151 of the Afghan constitution, or their immediate relatives are members.

2-    Legal entity that its dissolution  order has been issued by a competent  court.

3-    Legal entity that its one or more shareholders or members of it s _Executive Board or Board of Directors hav'e lost their full legal capacity.  ,.

4-    Legal  entity  that  its  one  or  more  shareholders.   or  mem ber·-s  of ,t he performing job in the  Ministry  of Energy and Water.   -    Legal entity that a competent court has issued the  bankruptcy  sentence  about the member  of its Executive  Board or Board of Directors.

6-    Legal person/entity whose license has been revoked, unless at least two years has been passed. fwm  the date of its revocation.

(3)    If persons mentioned in Article 151 of the Afghan constitution have been the members of the legal entity mentioned in section (1) of paragraph (1) of this Article before occupation of the duty, they shall be obliged to resign their membership of the legal entity.

(4)    In order to obtain a permit, foreign legal persons/entities shall be obliged to establish and activate their permanent agencies in Afghanistan and maintain operation documents relating to the energy services therein.

(5)    Companies that apply to obtain the licenses and make contracts shall  be required to submit the names of their shareholders  with the amount of capital share of  each one to  this Department.

Types of Licenses

Article 10:

(1)      The licenses  set forth in this law shall be as follows:

1-  Electricity Generation License . 2- Electricity Transmission License. 3-  Electricity  Distribution License.

4-    Electrical Energy Import License. 5- Electrical Energy Export License.

(2)           Licenses referred to in paragraph (1) of this Article shall be granted by the Department  in exchange for  certain fees and provision of a financial guarantee.

(3)      Fees set forth in paragraph 2 of this Article shall be determined by pro posal of Ministry of Energy and Water (MEW)and approval of government, and received by the Department and transferred to the government bank account.

(4)      The amount of fir1ancial guarantee set forth in paragraph 3 of this Article shall be determined by proposal of the Ministry of Energy and Water and the approval of the government and transferred to the deposit account in the bank.

Validation of License

Article 11:

The validity period of licenses under this Act shall be determined  as follows: 1-  Electricity Generation  licenses for  a maximum of 25 years.

2-    Electricity transmission licenses for  a maximum of 25 years..· .

,

3-    Electricity distribution licenses for  a maximum of 20 yea  s.. ··   . 4-  Electricity import licenses for  a maximum of 15 years.

5-  Electricity export licenses for a maximum of 15 year s.

Competitive Process:

Article 12:                                                                                                                  ....

(1) In order to ensure public  interests,  the  Department  starts  a  competitive process in relation to the applicants obtaining  licenses,  for  provision  of electricity  services as follows:

1-    Publish notifications for the public awareness about the submitted applications, provided that confidential and specific  information  set forth  in the applications remain confidential.

2-    Providing the opportunity of (45) days to the  applicants  of  power  supply following publication  of the  notifications  with an aim to  submit  applications.

(3)   If the department  receives  another  request  after  publication  of  notification,  it shall evaluate the requests within 25 working days and grant the license to the most qualified applicant, and if any  other  applicant  does  not  refer,  the  mentioned applicant shall be granted the license in this case.

Obligation of the  License Holder:

Article 13:

The license holder shall be obliged to  observe the following:

1-   The provision of energy services in accordance with the contents of license.

2-    Preparation of a work plan and budget and other information required to the Department.

3-    Payment  of  compensation  to  the  affected  party  for  damage  caused  by   the activities related t.o.th. e supply of electricity.

4-    Report the activities and statements of the department on demand.

5-    Maintain records and books of account and operation costs during the implementation of activities and delivery of energy services.

6-    Compliance with the laws and regulations of health  care ,  environment  and safety (safe technique)  of the  work area and staff.

7-    Payment of  the .in co me tax and customs duties in accordance with law.

8-    Regulation of accounting in accordance- w.i-t,h Afgh n law and international standards.

9-    Payment of the  approved fees.

Recruitment of Workers Article 14: 

expertise.

(2) The licensee may hire foreign skilled workers by the permission of the Department, if domestic workers by the  same level or higher is not  availa ble.

Renewal of License Article 15:

(1)  In case of no violation of provisions of this law and the terms of license, the license holder may request the extension of license, 60 working days prior to expiration of the period and provide the appropriate reasons and exp lanat ions in written to the Department.

(2)  The Department shall be required to evaluate the application and approve or reject it within 20 working days, and in case of confirmation extend the license, and in case of rejection, notify the applicant in written on its reasons.

If not satisfied, the applicant may refer to the authority set forth in the lice nse or contract or the authorities mentioned in Article 41 of this law.

Cases of License Suspension

Article 16:

{1) If the license hold er. viol at es the terms of the license or provisions of this law, the Department may justify him/her in written to  correct  the  defects  or  advice and warn the license holder as the  case may be.

{2) If the license holder ignores the decision made,  the  Department  may respectively amerce the license holder with the imposition of cash  fine  or suspend the  license within {90) days considering the  following  conditions:

1-    In case of  repeated violations  after imposition of the fine, up to  {2U) days.

2-    In case of continuing infringement or being failed to resolve the  defects despite the warning and without cogent reason, up to {45) days.

3-    In case the  extension request is proved false or deceptive, up to (60) days .

4-    In case of non-payment of the payable fees on due date and receipt of a relevant written notice, up to {90) days. 

{3) In case of being unsatisfied with the suspension order, the license holder may

2-         In case of delay or postponement of the activities under licenses without any cogent reason.

3-         In case of non-payment of taxes and land lease tax in the specified time. 4- In case of issuance of bankruptcy order to the holder of license.

(2)      The decision to abolish the license holder's license shall be taken when the Department already has officially warned the license holder regarding the provisions set forth in paragraph (1) of this Article, but the license holder has been disrespectful within the period contained in the warning, without any cogent reason.

(3)      If not satisfied, the applicant may refer to the authority set forth in the license or contract or the authorities mentioned in Article 41 of this law.

(4)      Revocation  of  license  shall  not  relieve  the  license  holder  from  liabilities set

forth in the license.·. . .

(5)      If  the  license  is revoked,  the  license holder  shall  be obliged to  remove  their

machineries, equipment, instruments and installations out of the area set forth in the license, or sell it within (6) months after receiving of a written notice, in this case, the Ministry of Energy and Water shall have the priority right to purchase.

(6)      If the equipment, instruments, machineries and installations installed are not sold or removed after the expiration of the period specified in paragraph (5) of this Article, it shall depend to the Ministry of Energy and Water thereafter.

Chapter 3

Establishment, Construction and Installation of Power Production Facilities

Construction and installation of facilities Article 18:

Construction and assembly of energy generation plants with transmission and distribution systems or without it, shall be carried out  after  obtaining  the  license based on a separate contract.

Use of land Article 19:

(1)  If the land needed for the construction and installation of contracted electric power facilities is governmental property, the Ministry of Energy and Water shall provide necessary leasing facilities to the contractor within the period specified in the contract according to the terms of the contract and license.

(2) The Department shall provide the right of having proper traffic road and other easement necessary for construction of the buildings and installation of power generation facilities.

If the needed land for the easement is a private property, the Department shall

obtain the passage permit from the  owner  or  possessor  of  the  property considering  the  easement  rights, in  accordance  with  the law. 

(3)  If the owner or occupier of the easement land receives damage as a result of road passage of the license holder, the license holder shall be obliged to compensate the damage.

(4)  If the owner or OC.(I.JP..ier of the easement land is not satisfied with the offered compensation,  he/she may refer to  the Department  or the  Court.

Construction of Rooms and Other Buildings Article 20:

The license holder may construct rooms and necessary buildings in order to provide energy services and assembly facilities.

Land Lease Article 21:

(1)  If the land required for activities of energy  services,  is  a  private  propert y,  the license  holder  may  lease  the  mentioned,  with  the  consent  and  agreement   of the  owner,  otherwise  the  Ministry  of Energy  and Water  r.na-y  m a ke acquisition property, the department shall be required to obtain a traffic permit from the respective department and if the land is a private pro pert y, the license holder shall have to lease it.

(2) The  department  may  also  observing  eas_ement   rights  of  the  license  holder, grant the right of usage of the  easement  area  which  is  a state  property  to other persons.

Re-habitation or Fair Replacement Article 23:

(1)  If the residents are forced te> leave the area as a result of  infr ast ruct ure activities of power services,  the  Department  shall,  before  implementation  of the project  and in  coordination  with the concerned  departments,  provide them housing in another place as the final option; In this case, the license holder shall, prior to implementation of the project prepare the re-habitation plan of the affected person in consultation with them, and provide financial resources or fair replacement to the displaced residents.

(2)  If the activity sef forth in Paragraph (1) of this Article is performed by the Department, it shall, before implementation of the project be obliged  to provide financial resources to displaced residents in consultation with the concerned Departments to meet their expenses and compensation.

Transfer of License Article 24:

(1)  The license holder may propose to the Department the transfer of all or part of the privileges of related license to a person eligible under this law.

(2) The license holder may only agree the transfer of license when the holder has fulfilled its legal obligations and the transferee is eligible under the terms and conditions  of this law and undertakes  the  obligations of the license holder.

Implementation of Approved Tariff Article 25:

Chapter 4 Tariffs

(1)       The   license   holder   who is  the          dominant one of the conditions of the license and shall be applied on all license holders without discrimination.

(2)      The tariffs may not be discriminatingly imposed to the benefit or detriment of any person without cogent reasons.

(3)     The departments may, in the following cases revise the tariffs of electricity services:

1-    In  the     event  that   obvious   compromise   prevails   between the  electricity companies in determining the rate of electricity.

2-    In the event that one or more companies deliberately have taken measures to destabilize the  market in imposition of the tariff. 

3-    If tariffs are levied by the  companies in a deceptive form.

Publishing Tariffs

Article 26:                          . . .

(1)  The license holder who has a dominant force in the market, shall be obl iged to publish  the  latest tariff  of electricity  services  supplied  in  the  market  as follows:

1-    Registration of the approved tariffs in the Department.

2-    Free of charge publish of the copies of tariffs on the relevant website for public access .

3-    Keep copies of tariffs in the respective  offices for  public use.

(2)  The license holder who is the dominant force in the market shall be obliged  to prepare all parts of the tariff to applicants in exchange of a specified amount of remuneration   dete rmined   by  the    Department    in    accordance    with    the cond it ion s set forth in  the license.

Chapter 5 Competition

Determination of Dominant Force in the Market Article 27:

The holder of license determined by the Department as  a  dominant  force  in  the market, shall be obliged to submit a wr itt en request to the Department within (10} business days according to the procedures, in order to  record  their  new responsibilities as the  dominant force in the market .

Misuse of  Dominant  Force in the Market

Article 28:

(1)     The license  holder,  who  is  the  dominant  force  in the  market ,  may  not  do act i vit ies that lead to the misuse of the market. The following shall be deemed to  be misusing points  of a dominant  force in the market:

1-    Failure to respond to the competitor's demand on providing limited so ur ce s within  a month  after  the  demand  and with  reasonable  conditions  and limit s, provided that such a facility shall be available to  the  license holder.

2-   Bringing together the energy se rvice s by im posit i on of con dit ions, limits and determination of price by the license holder who has a dominating force in the market  and  im pos·e it  as a  condition(s)  on  t he new  competit or s  to reduce competition.   

3-    Surpassing in the acquisition or preservat io n of limited resources, including the right of traffic to carry out energy services activities in order to prevent the entry of other competitors in the market.

4-    Delivery of services at a price lower t han the cost of service or any other rate approved by the Minist ry of Energy and Wat er.

5-    Discount on a service that serves to reduce competition an d compensate it in another service.

The cases that the Minist ry of Energy and Water has specifi cally approved such disco unts in the tariffs are exempted from this pro vision.

6-   Incompet ency in implementation of obligations of int erp er so nal connection under t his law .

7-    Discriminat ion  in  the  prov1s1o n  of  int erp erson al  connections  access  or  other services or facilities to competitors. Where the condit ions are ad missib le based on the difference in prices, in suffi cienc y of facilities or available reso urce s, shall be exempted.

(2)      The following measures that prevent s the d evelopment of the market and entry of the competitors to the market,  shall also be forbidden:

1-    Determination  of  prices  to  the  competitor  upon whole sale transaction  to increase or decrease the prices in order to harm the competitor or both that makes the benefit or entry of the competitor to the market impossib le.

2-    Asking the license holder or forcing the competitor to avoid the sale.

3-    Sett in g up the technical specifi cat ion s of t h e rele vant network or its price in a way that prevent s the network activities and/or  the  purchasing  of  the competitor's  services.

4-    Evasion to pro vide timely technical info rmat io n, reso urces, information  and other busin ess data needed to  new competitors t o provide services.

5-    Using the information gained from com petit or on int erpersonal co nnect ion or supply of services by the license holder who has t he 9s>minant force in order to compete  with them.

Anti-Competitive Activities 

Article 29:

No one shall be permitte.·d. to.

take actions in limiting or disrupting activities related to electricity supply competition in the market; the following shall  be  considered  to include these activities:

1- Setting prices or other conditions, or service limits in electricity market. 2-  Assignment of person who wins the contract in the electricity market. 3- Division, partner or determination of electricity markets.

Determination of Misuse of Dominant Market Force and Anti-Competitive Activities

Article 30:

The Department may itself or through the complaint or information,  determine misuse of dominant market force or anti-competitive activity of the license holder and shall take necessary measures in this regard. The measures taken by the Department shall be applicable in this regard, unless the other party not satisfied with it and refers to the dispute resolution authority or a court.

Measures  Preventing Misuse or  Anti-Competition Activity

Article 31:                                                                                                 

The Department  shall be obliged to  take the  following measures [...] to prevent misuse of dominant force and anti-competitive activity:                   

1-    To appoint  one or more persons  to  stop the measures wt,i !i lea cf'l o abuse  or anti-competitive activities,  and/or  t-o  reduce  its ari si ngim pact

2-    To review reports prepared by the responsible persons and gain information about stoppage or continuation of prohibited activities and taking actions necessary to eliminate the negative impacts of these activities on the market, competitors  and consumers.

3-   To oblige individuals included in the decision to prepare tariffs based on cost paid and implement it within (20) working days after registration in the Department.

4-    To deprive offenders who frequently commit crime from adopted decisions on some commercial areas or pro ibiting the activities  C?f other  entities  or  their book of accounts, provided that the perm 'it holder has already been warned of such a decision in written and the effectiveness of decision is ensured .

Chapter 6

Network Interconnection and Access to it

Commitments related to. Article 32:

Interconnection 

(1) The license holder shall be obliged to provide interconnection of the elect ricit y networks with regard to the provisions of this law and the terms  of  the relevant lice nse .

(2)  The permit holder, who has  a dominating force  in the  market, shall effectively and non-discriminatingly ensure interconnection in possi ble t echnica l areas amongst  other  permit holders.

(3)  The permit holder who has a dominating force in the market shall be obliged to make available to the other license holder s, the accounting info rm at ion, technical specifications, network characteristics, and the condit ions and limits along with the price  approved  by  the Department.

(4)  The department may oblige the license holders who have dom inant force in the market to make available equal opportunities (including price, timeframe and quality) to affiliated and non-affiliated competitors under ident ica l conditions.

(5)  The license holder may reject the  request  for  interpersonal  connection  based on justified reasons on lack of  technical facilities.

(6)  If the interpersonal connection that has been requested at a specific location is unpractical based on the technical reasons and practical in one or more point s, the supplier shall be obliged to explain to the applicant the reasons of all t he technical  and commercial  conditions  that allow connection.

(7)  The holder of licenses that do not have a dominating force in the market , sha l l have the right to negotiate  requirements  with each other about  the condit  ion s of interpersonal connection; in case of failure to reach an agreement, they may refer the relevant decision to the Ministry of Energy and Wat er . The decision made by the  Ministry of Energy and Water shall be applicable on the part ies.

Suggesting Interconnection Points Article 33:

(1)  The licensee  who has a dominant shall be obliged to submit the  list  of  requested  co nnect io [...]this law to the Department for approval with  the provisions of 

(2)  The licensee, who has been identified by the Department as a dominant force in the market, shall within 20 working days of identification, provide the proposal of connection points for approval to the Department  which  contains the following tech.ni.ca. l and commercial information:

1-    List of all connection standards and se rvices, and its explanation,

2-    Location  of  connection  points, conditions  and limits  of its  connection   and  disconnection,

3-    All applicable technical requirements and protocols for connection,

4-    Conditions of testing the operation of connections,

5-    Power flow control during connection,

6-    Requirements in order to identify the connection lines,

7-    The least conditions to notify  any changes,  annexes and termination  conditions of  the  connection Agreement,

8-    Other   technical   data needed  to create   the   possibility of  connection  in accordance  with the provisions  of this law.

Commercial  proposal includes:

1-    Applicable tariffs and its conditions and limits, in a manner that shall be appropriate, non-discriminatory and on the basis of estimation on increment in revenues and expenditures,

2-    Protectable confidential information,

3-   Other commercial information needed to implement interpersonal connection in accordance with the provisions of this law,

{3) Having received the connection points proposal, the department shall be obliged to release a statement in order to collect public opinion and publish it in the relevant website, and use the connection points after reviewing the comments and responses provided,.

(4)  The department may amend the proposal for interpersonal connection points considering the provisions of paragraph (2) of this article.

(5) The licensee responsible for providing interpersonal connection in accordance with the provisions of this Law shall implement the interpersonal connection based on the  approved proposal of the interpersonal connection  points. Any

Implementation of Suggestion on Connection Points Article 34:

(1)  Interpersonal connection service provider shall provide the answer within (40} business   days  froin  the  date  of  receipt  of  the  request  based  on approve proposal.

(2)  If the interpersonal connection service provider is not able to connect the requested connection points, it shall be obliged to inform the applicant and suggest another alternative. In case of agreement of the parties to the proposed alternative, the parties shall conclude the related contract and publish them on the website of the Department.

In case of disagreement, the applicant  may refer to the Department to resolve  the dispute, in this case the decision taken by the Department  shall  be applicable. 

Use of Property Article 35:

Chapter 7 Access to Properties

(1)  The License holder may himself/herself or through the Department obtain the agreement of relevant authorities in order to build, mai nt ai n, and activate the transmission services network, distribution, import and export of electricity from the highways and public properties.

(2)  The department may, at the request of the relevant agencies at their capacity, give necessary guidance to the license holder in relation to the change in the network course, t ransm issio n, distribution, import and export of  electricity power.

(3) The department may upon obtaining the consent of relevant agencies or landlord, grant license holder the permit for construction, excavations or extension of cables in the ground, underground or in the electric power networks, as appropriate.

(4) The license holder may use the facilities mentioned in this article only when it 

(5)  The cost of repositioning or modifying the existing facilities granted to the new network under thi's law shall be borne by the demander, and the cost for protective  measures  stated  in  this  Article  shall be  the responsibility of the license holder. 

Ancient, Cultural, Historical Traces and the Environment Protection Article 36:

The license holder  shall be obliged t o, in accordance with provisions  of  relevant laws, observe     respect     for     maintenance       of     the     areas    having  historical,  cultural, archaeological and environmental  import ance.

Joint Space Use Article 37:

(1) If  the  holders  of  licenses install required devices  in  a place in  where actually

another network is operating, they shall obtain the consent of the earlier holders of licenses in this regard .

{2} If a place is used jointly, the costs based on mutual consent shall be divided amongst parties or else, the parties may submit the matter to the Department for decision making.

{3} The license holder who has a dominating force in the market shall be obliged to register and record the tariffs, terms and conditions of use of  common space in the department.

Power Supply Conditions Article 38:

(1) The department  shall  be  obliged  to  adjust the  conditions  for  provision of electricity services considerin,g procedure. 

consumer interests  and on the  basis  of special

{2} The procedure shall include the following: 

Preparation of the statement documents and other instruments in one of the official languages  of Afghanistan.

The right of access to common property in order to provide energy services on the basis of consent of the owner.

The right to use electricity services.

Ensuring consumers protection on the use of energy services. Protection  of  consumer's  recorded  confidential documents.

Compensation of incomplete and defective services to the consumers. Scope of  the  responsibilities of the license holder.

Determination of time period for payment of tariffs and fees. Suspension, disconnection and resupply of electricity energy services.

The manner  of  reviewing consumers complaints.

Other issues considered necessary  under this law by the  department.

Encourage and Support Article 39:

Chapter 9 Investment Support

The investment in the area of energy services and its infrastructure facilities shall take place in accordance with the provisions of the Investment Law and the provisions of this law, and the investor shall be benefited from the privileges and possessions of investment under the relevant laws and regulations.

Foreign Investment Article 40:

(1) Foreign investment in energy services and its infrastructure facilities shal l be subject  to  the  private investment  law in the following cases:

1-    Access to banking facilities,

2-    The transfer of capital and its profit,

3-    Transfer of the actual foreign debt and its other payments, 4- Sale of approved enterprise and transfer of its income.

5- Expropriations, compensation and the transfer of its funds and the right of reference to the court.

(2)  The holder of licenses, importers and vendors of the electricity energy equipment shall have to perform their tax obligations under provisions of the law.

Dispute Resolution Authority Article 41:

Chapter 10 Dispute Resolution

(1)  If disputes arise between the holder of the license and the Department or the holder of licenses and other persons on energy supply activities, the parties may resolve it by mutual negotiation or through the disputes  resolving authority set forth in the license or contract. In case, mentioned aut hor it y is not specified, they may refer to one of the following references or aut horit ies:

1-    Mediation of experts based on consent of parties,

2-    The Disputes Resolution Board of the Ministry of Energy and Wat er ,

The dispute resolution Board shall be determined in the following manner based on proposal of the Ministry of Energy and Water and approval of the government:

One of  the  independent  qualified experts, One of the electrical energy  services expert s,

-    A lawyer proposed by the  Afghanistan Lawyers Union

3-    Commercial Dispute Resolution Center of the Chamber of Commerce and Industry  of Afghanistan,

4-    Financial Disputes Resolution Commission under the DAB Law.

5-    International Center for Settlement of Investment Disputes {ICSID),

6-    The United Nations Commission for International Trade Rights Arbitration Law{UNCITRAL),

7-    The competent court in Afghanistan,

(2) In case of conflict, a foreign investor may refer to one of the references  contained in items (4 and 5) of paragraph  (1) of this  Article.

Fines Article 42:

Chapter 11

Violations and Disciplinary Actions

(1)  A per son, who makes construction of facilities or infrastructure of supply, distribution, transfer, import and export of electricity energy without obtaining licenses, shall be obliged to pay a fine equivalent to five percent of the total investment.

(2)  If the licensee misuses the dominant force in the market, it shall in addition to compensation for  damages,  be also fined an amount  equivalent to ten percent of total loss co mpen sat ion .

(3) If the licensee who has a dominating force  in  the  market,  without  a  valid reason denies access to the network or the use of  common  locations,  in addition to compensation for damage to  the  permit  holder  shall  also  be obliged to  pay a fine equivalent  to  ten percent of loss compensation.

(4)  If the licensee without obtaining the approval of the tariff takes measures in publication of the tariff, or receives payments more than specified fees, in addition to compensation shall be obliged to pay a fine equivalent to the illegal fees received .

(5)  If the licensee does not provide to the Department the copies of documents containing technical and financial info rm at ion, expenses, interpersonal connections, internal protocols, changes a_nd increases,  shall be obliged to  pay a fine equivalent to fifty percent of the  fee  determined  by  the  respective license.

(6)  If the licensee fails to deliver services as subsidies in  accordance  with  the criteria  of license or provides the services contrary to the provisions  of this la w, it  shall be obliged to pay the  amount equivalent to the subsidy.

(8)  If the licensee operates the electricity  energy  equipment  without  prior permission of the Department or uses  the  appliances  and  equipment  that would    cause    thr·eat,    severe    damage    and    frequent    interference  and disconnection  of the ..electricity,  in addition  to  compensation  for  damage shall also pay a fine equivalent  to  twenty percent  of compensation.

(9)  If the licensee does not pay the fees by the due date, it shall be obliged to pay a cash fine equivalent to two fold of the determined fee.

(10)                If the licensee makes the use of electricity energy machineries and installation in private land areas without  the right  of use, it  shall be obliged  to pay for  the  damages incurred to the affected person .

(11)                If the licensee does not provide the requested information to the Department or refuses the legal demands necessary for the consumers information access in accordance with the provisions of this law, it shall be obliged to pay a fine equivalent to fifty percent of the fee determined by the respective licenses.

Non-Satisfaction Article 43:

If a person does not consent to the fine imposed by the Department, he/she may refer the objection to the dispute resolution authority.

specified in the  contract.

Terms of Use of the Instruments and Equipment Article 45:

(1)  The  equipment  and  tools  of  t,he  electricity  net wo_rk maybe used· when they comply with the approved standards of the Mini.stry of Energy and Water.

 (2) The department shall issue the permit for operation of the equipment of the electricity network used by the holders of licenses in Afghanistan  according to the  regional and international standards and the  relevant  procedures.

(3) The owner  of  equipment  under paragraph  (2) of this Article shall be obliged  to  hold  the  documentation  that  show  the  source  and  approving department .

Preparing the Grounds for Access of General Public to the Energy Services Article 46:

MEW shall be obliged to step by step ensure and prepare the grounds for access of general public to the energy services in terms of its quality and quantity in accordance with the objectives set forth in this Law and national development within the country.

Correction of Defects in case of Violation Article 47:

(1)      If the holder of the license  violates  the  terms  of  license,  procedures, regulations or provisions of this Act, the department may  issue  a  written guidance on correction of the deficiencies within the certain period, or impose fines under this Act or suspend or revoke the relevant license.

(2)      Cash fine sunder the law shall be imposed by the Department and transferred to the government account.

Publication of Documents through Website Article 48:

(1)     The Department may publish the notifications, decisions, licenses, suggestions and agreements related to interpersonal network connection and other such non-confidential documents through the relevant website.

(2)      The Departments  may make available to  the  applicants the  copy of documents