Electricity Act (No. CX)

The Act shall be applicable to: (a) the generation, transmission, distribution, trade and consumption of electricity; (b) the operation of the electricity grid and ancillary services thereof; (c) the establishment, operation and decommissioning of electrical installations, customer connection systems, consumer equipment and direct lines; (d) licensing in the electricity sector. Electricity shall be generated, transmitted, distributed, traded and utilized with a view to the protection of life, health, the environment, nature, operational safety and energy efficiency. The Act consists of 12 Chapters dealing with the following matters: general provisions (Chapt. 1); administrative powers (Chapt. 2); electricity supply (Chapt. 3); licensing (Chapt. 4); limitation of ownership rights due to installation of electricity equipment (Chapt. 5); public service supply (Chapt. 6); pricing and price regulation (Chapt. 7); unbundling of activities (Chapt. 8); limitation on participation in licensed undertakings (Chapt. 9); malfunction of electricity supply (Chapt. 10); technical safety provisions (Chapt. 11); closing provisions (Chapt. 12). The Government shall have the following competencies: (a) to set forth the rules and regulations pertaining to the Electricity Supply Codes; (b) to set forth licensing terms and conditions; (c) to establish the date of introducing the green certificate system. Green certificate is a document issued by a generator or by an operator of a small power plant in evidence of the quantity of electricity generated by energy from renewable sources or waste. The use of renewable sources and waste for power generation shall be promoted. The following activities shall be subject to licensing: (a) the establishment and operation of a power plant with a capacity of 50 MW or more; (b) the transmission of electricity; (c) the distribution of electricity; (d) grid control; (e) electricity trade in any form whatsoever; (f) the wholesale of public service electricity; (g) the supply of public service electricity; (h) the operation of the organized electricity market; (i) cross-border electricity transmission. Operating licenses issued for electricity transmission and distribution shall be valid for a period of twenty-five years and may be extended.