CHAPTER ONE./GENERAL PROVISIONS/

Article 1. The Purpose of the Law

1.1. This Law to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto

Article 2. Legislation on Energy Conservation

2.1. Legislation on energy conservation shall consist of Energy Law of Mongolia, Renewable Energy Law

and other legal acts adopted in conformity therewith.

2.2. If an international treaty to which Mongolia is a party is inconsistent with this law, then the provisions of the international treaty shall prevail.

Article 3. Definitions

3.1. In this law, the following terms shall have the following meanings:

3.1.1. “Energy” means the energy definition under Clause 3.1.1 of the Energy Law;

3.1.2. “Energy conservation” means the measured or calculated reduction in the positive amount of

energy consumed prior to and following all actions implemented for the purpose of the energy

conservation;

3.1.3. ”Energy efficiency” means the ratio of the useful energy output over the required energy input

for manufacturing a good or product or carrying out a task or service;

3.1.4. “Energy audit” means the independent activities for verification, monitoring and analysis of

use of energy by citizens, business entities and organizations; submission of report;

recommendations for improving energy efficiency; and issuing conclusions;

3.1.5. “Energy auditing agency" means any legal entities which holds a license for auditing and

provides services under Clause 3.1.4;

3.1.6. “Energy auditor” means any legal person, who holds a license for auditing and works for legal

entity;

3.1.7. “Energy service company” means any legal company which holds a license for strengthening

consultancy services and providing energy services in the field of energy efficiency and its

conservation requested by designated consumers and obligations as citizens, companies and

organizations;

3.1.8. “Designated consumers” means any legal entity, whose energy usage is above the energy

consumption threshold as defined by Government;

3.1.9. “Energy conservation manager” means any employee, who is authorized to work for the

designated consumers;

CHAPTER TWO./FULL POWERS OF STATE AUTHORITIES WITH REGARD TO ENERGY

CONSERVATION/

Article 4. Full Powers of the State Ikh Khural

4.1. The State Ikh Khural shall formulate the state policy on energy conservation.3

Article 5. Full Powers of the Cabinet

5.1. The Cabinet shall exercise the following full powers with regard to energy conservation:

5.1.1. Organize implementation of the state policy and legislation on energy conservation;

5.1.2. Approve the national energy conservation program.

5.1.3. Approve regulations under Clause 9.1.9

Article 6. Full Powers of the State Central Administrative Authority

6.1. The State Central Administrative Authority in charge of energy shall exercise the following full

powers:

6.1.1. Organize and ensure the implementation of the legislations and decisions on energy

conservation;

6.1.2. Specify and approve the norms and standards for buildings, equipment, appliances, services

and materials, and for generation, transmission and distribution of energy regarding energy

efficiency and its conservation;

6.1.3. Develop the implementation plan of the state policy on energy conservation and submit its

performance to the Energy Conservation Council;

Article 7. Full Powers of Governors of Aimags, the Capital City, Soums and Districts

7.1. Governors of aimags, the capital city, soums and districts shall organize implementation of legislation on energy conservation and decisions issued by the authority in charge, in conformity with this legislation, develop a policy on energy conservation in their respective territories;

7.2. Determine local policy on energy conservation and implement it in collaboration with related

organizations;

7.3. Prepare progress reports of the implementation related to energy conservation in Aimags and the Capital city, and forward them to the Energy Conservation Council;

Article 8. Energy Conservation Council

8.1. Duties of the Energy Conservation Council shall be to regulate and implement policies on energy

conservation statewide (hereinafter referred to as “Conservation Council”) under the direction of Energy

Regulatory Commission;

8.2. On the structure of the Energy Regulatory Commission, there is a specialized units, who is responsible for implementing energy efficiency policies;

Article 9. Full Powers of the Energy Conservation Council

9.1. The Energy Conservation Council shall exercise the following full powers:

9.1.1. Facilitate the implementation of the state policy and legislation on energy conservation at the

national level;

9.1.2. Formulate national program related with energy conservation;

9.1.3. Responsible for obtaining annual performance and report of the designated consumers on

energy consumption;

9.1.4. Register designated consumers;

9.1.5. Issue, suspend and cancel an accreditation for energy auditing agencies and energy service

companies;

9.1.6. Issue a license for energy auditors and energy managers;

9.1.7. Take all measures necessary to create database and awareness, and disseminate information for

efficient use of energy and its conservation, and advertise the same

9.1.8. Organize training and specializing energy auditors and energy conservation managers;

9.1.9. Conversation Council shall organize to formulate following regulations;

9.1.9.a. Regulations related to energy auditing activities under Clause 13.3. and Clause 13.4

9.1.9.b. Regulations for accreditation procedures and requirements of the energy service

company and energy auditing agency

9.1.9.c. Regulations for training energy auditors and managers; regulations relating to the

issuing, amending and revoking an accreditation;

9.1.9.d. Regulations for classification, grading, labeling and monitoring of the energy powered

goods, such as machinery, electronic equipment, home appliances, by their energy usage;

9.1.9.e. Regulations for specifying and registering designated consumers, regulations for

methodology of the formulating and submitting its programs; for annual implementation plan

and its reporting procedures related with energy conservation for the designated consumers;

9.1.9.f. Procedures for providing support and incentives to citizens, business entities and organizations that have built energy-efficient buildings and structures, produced and imported machinery, equipment, products and materials, and improved energy efficiency;

9.1.9.G. Other applicable rules and regulations;

9.1.10. Prepare annual report of the implementation of the energy conservation policy, and submit a

copy thereof to the Cabinet;

9.1.11. Resolve any dispute related with energy professional services in accordance with their

jurisdiction;

9.2. Energy Conservation Council can be carried out its full powers specified in Clause 9.1.7, 9.1.8 by nongovernmental organizations.

CHAPTER THREE./RIGHTS AND OBLIGATIONS OF ENERGY CONSUMERS/

Article 10. Rights and obligations of designated consumers

10.1. The designated consumers shall have the following rights:

10.1.1. Select an energy auditing agency;

10.1.2. Claim a reasonable explanation of energy auditing conclusion and recommendation;

10.1.3. Select and implement the recommendations under Clause 13.4.2;

10.1.4. Incentives for implementing energy-saving measures;

10.2. The designated consumers shall have the following obligations:

10.2.1. Conserve energy and use it efficiently;

10.2.2. Any designated consumer shall get an energy audit report prepared by a certified energy

auditor;

10.2.3. Formulate and approve programs related to energy conservation and its efficient use, and

prepare an implementation action plan thereof;

10.2.4. Submit a report of implementation of the energy conservation measures under Clause 10.2.2-

10.2.3 to the Conservation Council annually;

10.2.5. Report within 14 days in written form to the Conservation Council the appointment and

discharging of a certified energy manager for the purposes of this Law;

10.2.6. Submit the complaints related with energy professional services to resolve so the Conservation

Council.

Article 11. Rights and obligations of citizens, companies and organizations

11.1. The citizens, companies and organizations shall have the following rights and obligations:

11.1.1. Ask advice from energy auditing agency relating to energy conservation;

11.1.2. Get an energy audit report prepared by a certified energy auditor voluntary.

Article 12. Incentives

12.1. Those designated consumers, citizens and entities shall have incentives, who are constructed energyefficient building, or planned energy-efficient design, or manufactured or imported energy-efficient

machinery, equipment, products and materials, or implemented energy efficient measures

Law of Mongolia on Energy (Unofficial translation)

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CHAPTER FOUR./ENERGY CONSERVATION SERVICES/

Article 13. Energy auditing agency, energy auditor

13.1. Energy auditing agency and energy auditor shall operate their activities on bases of accreditation.

13.2. Energy auditing is regulated by regulation under Clause 9.1.9.a.

13.3. Energy auditing agency and energy auditor shall have the following rights:

13.3.1. Obtain necessary explanations and materials related with auditing from the designated

consumers;

13.3.2. Make recommendations and conclusions on energy auditing requested by citizens, companies

and organizations;

13.4. Energy auditing agency and energy auditor shall have the following obligations:

13.1.1. Calculate, analyze and conclude energy consumption of the designated consumers;

13.1.2. Make economic efficiency and technical feasibility proposals to the designated consumers;

13.1.3. Explain the grounds for a given recommendation and/or conclusion upon request by designated

consumers;

Article 14. Energy Service Company

14.1. Energy Service Company shall operate the following activities related with promotion of efficient use of

energy on bases of accreditation.

14.2. Energy service company shall provide professional services to the designated consumers by a contract;

14.3. Energy service company shall invest and take the full responsibility of the risk during providing energy

efficient services;

Article 15. Energy manager

15.1. Energy manager is certified to ensure their rights;

15.2. Energy manager shall have the following rights and obligations:

15.2.1. Comply with the priorities identified by the Conservation Council;

15.2.2. Responsible for organizing and implementing the plan of the designated consumers related with

their energy conservation and efficient use of energy;

15.2.3. Responsible for monitoring the energy conservation activities of the designated consumers;

15.2.4. Report on their activities to the Conservation Council annually;

15.2.5. Participate in specialization trainings organized by the Conservation Council;

CHAPTER FIVE./MISCELLANEOUS/

Article 16. Penalties and adjudication

16.1. If a breach of legislation on energy conservation does not constitute a criminal offense, the state energy

inspector shall impose the following penalties;

16.1.1. If any designated legal entities under clause (10.2) fail to comply with obligations, the official

shall be liable to a penalty of 2-5 times of minimum wage and the company and organization shall be

liable to a penalty of 10-15 times of minimum;

16.2. If any energy auditing agency and energy service company fail to comply with their operation of the

energy audit due to damage anywise the consumer and designated legal entities, the energy auditing

agency shall be liable to repay the amage and their accreditation will be suspended or revoked;

Article 17. Effectiveness

17.1. This Act shall come into force on November 26, 2015.