Bhutan

Electricity Act of Bhutan

Legislative

Law

Passed in 2001

The Electricity Act enables the restructuring of the power supply industry and the possible participation of the private sector, by providing mechanisms for licensing and regulating the operations of power companies. The establishment of the Bhutan Electricity Authority as an autonomous body is meant to ensure a transparent regulatory regime; the Authority also has the role of laying down the standards, codes, and specifications of the Electricity Supply Industry. The Electricity Act must define the roles and responsibilities of suppliers and protect the interests of the general public. Two of the core objectives of this act are to promote the development of renewable energy resources and to promote efficiency in management and service delivery. Art. 60.3 states that the Minister may, on the recommendation of the Authority, direct Licensees to undertake certain public service obligation which may include obligations in relation to the use of renewable energy sources (60.3.v). Art. 25.1. states that when granting or rejecting applications, the Authority shall take into consideration energy efficiency, as far as adequate for the project applied for.

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