The Government of the Russian Federation has a need to create the main provisions for the functioning of retail electricity markets after the implementation of reforms in this industry in 2003. All citizens use the power supply of instruments and devices for their needs.
Not everyone knows that the state monopoly on the sale of resources has been transferred to guaranteeing suppliers, organizations that provide residents with services.
What regulates a legal act?
The main provisions of the functioning of retail electricity markets reveal the rules by which suppliers must act and conclude contractual obligations with consumers.
The act establishes the procedure for settlements with users after implementation, indicates how product prices are regulated in each case. In order to work legally and occupy its niche in the market, a company must prove its status. The organization can be created on private capital or a state-owned enterprise takes part in it.
After creating such an organization, employees are required to:
- conclude an agreement with all consumers located in the area of activity;
- purchase energy products to provide them to the public;
- evenly distribute services among consumers.
For their work, the supplier will receive money in the amount of a marketing premium.
Legislative regulations
In May 2012, the Government established the main provisions for the functioning of the retail electricity markets No. 442. By their Decree, the RF government departments tried to streamline the energy supply structure and save the population from inconvenience during the transition period. Citizens should not look for suppliers and sellers of energy resources. The guaranteeing supplier took care of all organizational matters, and the network owner manages the equipment and transfers the products point by point.
Independent Organizations
The owner of the network economy is obliged:
- keep equipment in order;
- connect and transmit electricity uninterruptedly.
There is a special kind of distributors, they work as independent enterprises in the interests of customers. These companies are independent of the region; their actions cover the entire Russian territory. All the same, the purchase of electricity occurs in the retail market, only sale to consumers occurs at negotiated prices.
The Government Decree allows all companies to work within the legislative framework according to the approved standards. The Regulation establishes the requirements and obligations for service providers; responsibility to the law and consumers is indicated.