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Uzbekistan power companies face fixed penalties

Business Materials 24 February 2012 13:39 (UTC +04:00)
The Legislative Chamber of Oliy Majlis (lower house of parliament) of Uzbekistan passed a law on Amendments to Article 477 of the Civil Code of the Republic of Uzbekistan

Uzbekistan, Tashkent, Feb.24 /Trend D.Azizov/

The Legislative Chamber of Oliy Majlis (lower house of parliament) of Uzbekistan passed a law on Amendments to Article 477 of the Civil Code of the Republic of Uzbekistan aimed at strengthening the accountability of gas and electricity supply company officials for failure to fulfil contractual obligations to businesses to ensure uninterrupted electricity and natural gas for production purposes.

The rate provides for the reimbursement of damages in cases of non or improper performance of obligations under the contract of supply by the energy supplying organisation which is fixed legislatively.

The power supply company will be obliged to compensate for actual damages and lost profits from the production downtime due to unwarranted stoppage of service delivery as part of the adopted law which has a similar criteria to the experience of industrialised countries.

The law was sent to the Senate (upper house of parliament) of Uzbekistan for approval.

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