Conflict-of-laws regulation of the international transit of electric energy

This article examines the conflict-of-laws regulation applying to the cross-border transit of electric energy. The analysis revealed that such transit is a technically complex and legally nuanced process. It can be accomplished by actually moving and (or) replacing electric energy. The selected option affects the type of contracts concluded and the conflict-of-laws rules applied to them. The conflict-of-laws regulation governing the electric energy transit among different countries includes: 1) general conflict-oflaws rule recognizing the parties’ autonomy to choose the applicable law; 2) subsidiary conflict-of-laws rule allowing courts to determine the applicable law based on the type of the contract and the party with principal performance obligations; and 3) corrective clause permitting courts to apply the law of the party most closely connected to the actual execution of the contract.