ENERGY LAW
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electricity generation activities, during which period they must obtain the
necessary permits, approvals and licenses, as well as acquire ownership
or usufruct rights to the land where the generation facility is to be located.
The term of the preliminary license cannot be more than twenty-four
months excluding the occurrence of force majeure events. EMRA is
entitled to increase the preliminary license term by half, for a maximum
of thirty-six months, based on the energy source type and the facility’s
installed capacity.
The New EML stipulates that legal entities that could not obtain the
above-mentioned documents, certify the acquisition of the property or
usufruct rights, or fulfill the other legal requirements shall not be granted
a generation license. In addition, before a generation license is granted,
where there are any direct or indirect changes in the shareholding
structure (with the exception of inheritance), share transfers or non-
fulfillment of other legal requirements, the preliminary license will be
cancelled. Moreover, if the preliminary license term expires or the legal
entity holding the license files for or falls into bankruptcy, the preliminary
license will automatically become null and void. However, there is no
express provision in the new EML stating when the preliminary license
becomes null and void.
Distribution License Holders and Other Market Activities
As per Article 9 of the New EML, electricity distribution companies
can only operate in the territory indicated in their license, cannot conduct
activities other than distribution activities and cannot directly become
a shareholder in other legal active in the electricity market. Moreover,
while generation companies are prohibited from becoming controlling
shareholders under the Previous Law, the New EML completely prohibits
legal entities active in the electricity market from becoming direct
shareholders in a distribution company. As
argumentum a contrario,
indirect shareholding is not prohibited.
Supply License and Supply Companies
Wholesale and retail sale activities, which were regulated as different
types of licenses, “wholesale license” and “retail sale license”, under the