Decree-Law No. 13 of 2009 regarding the General Electricity Law.

This Decree-Law, consisting of 38 articles organized into eight chapters, aims to regulate and advance the electricity sector in Palestine, fostering both local and foreign investment to ensure ample electrical energy at competitive prices. Article 4 outlines the tasks and powers of the Palestinian Energy and Natural Resources Authority, encompassing policy development, international collaborations, safety enforcement, code issuance, tariff setting, and licensing for energy projects, all requiring approval from the Council of Ministers. Article 5 establishes the Palestinian Electricity Regulatory Council (PERC), with key objectives including tariff review, licensing for generation, transmission, and distribution, promoting renewable energy, resolving disputes, providing essential sector information, and overseeing energy conservation and renewable energy projects. The council manages its finances through a dedicated trust account, with approved budgets transferred and financial reports submitted to the Ministry of Finance. Additionally, legal auditors appointed by the council provide annual financial reports. In the tariff determination process, the Council evaluates company prices, aligns them with the approved tariff by the Council of Ministers, and offers recommendations to the Energy Authority. Key considerations involve safeguarding consumers from monopoly prices, factoring in costs such as technical loss, service efficiency, and borrowed fund repayment in line with the company's development plan. Additionally, factors like tariff and consumer segments, acceptable returns on invested capital, incentives for service enhancement, compliance with the Investment Encouragement Law, and considerations for alternative energy utilization are taken into account.
In terms of management, the electricity sector is overseen by licensed companies, with specific requirements: (i) companies must be joint-stock entities; (ii) combining generation and distribution licenses is prohibited; (iii) a single company cannot be a major shareholder in both a generation and a distribution company. Regarding the licensing of generation companies, the Decree-Law stipulates that (i) companies licensed for public electrical energy generation must adhere to non-monopolization rules, and any license transfers necessitate prior approval from the Energy Authority and Energy Council Ministers; (ii) license-holding firms must engage in agreements with the Energy Authority and other designated bodies, ensuring alignment with sector development objectives, environmental and safety standards, and provision of consumer services in accordance with approved specifications. Article 18 establishes the National Transport Company, wholly owned by the National Authority, with primary responsibilities including (i) transferring electrical energy at voltages above 36 kV to distribution companies and consumers; (ii) facilitating the import and export of electrical energy; (iii) owning, maintaining, and enhancing the national high-voltage transmission network; (iv) constructing and expanding transfer stations; (v) buying and selling electrical energy; (vi) defining parameters for linking entities licensed for electricity distribution and generation from renewable or traditional sources.
Concerning distribution, licensed companies are responsible for delivering electrical energy to consumers, and local entities overseeing electricity projects are required to be contributing members. The Council, in accordance with its guidelines, oversees the contributions of these entities, with exclusive authority for electricity distribution to citizens vested in these companies. Distribution licenses, granted by the Energy Authority, cannot be transferred or sold without prior approval. Additionally, the Authority is charged with advancing research on renewable energy sources and coordinating their utilization. Licensed renewable energy facilities have the authorization to directly sell their generated electricity at low and medium pressure to electricity distributors, governed by agreements established according to an approved tariff set by the Council of Ministers, upon the Energy Authority's recommendation. Lastly, entities holding licenses for electricity generation, transmission, or distribution have the capability to extend electrical lines through or above various terrains, excluding archaeological sites. This requires approval from local bodies and regional planning committees, with landowners notified at least 30 days before work. The licensed authorities can access the land for maintenance, repair, or changes to electrical installations after coordinating with relevant authorities.