Electricity Act of Bhutan 2001

Name of policy Electricity Act of Bhutan 2001
Jurisdiction Country
Supranational region
Country Bhutan
Region Asia


Subnational region or state
City or local
Policy objective
  • Mitigation
  • Energy access
Type of policy instrument
  • Policy support
    • Strategic planning
      • Institutional creation
      Sector name
      • Electricity and heat
        Policy description [[Policy description::Legislative.

        Preamble: "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 will 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 objectives of this Act include the development of renewable energy resources, the promotion of efficiency in the management of electricity and service delivery, and the promotion of a safe and reliable supply of electricity throughout the country.

        The role of the Bhutan Electricity Authority will be to develop regulations, standards, codes, principles and procedures, such as performance standards, tariff-setting, subsidies, and taxes (Art. 11.1). It will be in charge of ensuring the reliability, quality, security and efficiency of electricity supply, and to ensure the protection of the natural resources, the environment and other public interests affected by the development of electricity supply. One of the functions of the Authority will also be to regulate tariffs.

        The Electricity Act also regulates the granting and exemption of licenses. Licenses are required to generate electricity, to transmit electricity, to bulk supply, to distribute electricity, to supply electricity, and to trade in electricity.

        Art. 25.1. states that when granting or rejecting applications, the Authority shall take into consideration the needs to protect the environment and to conserve the natural resources, and energy efficiency.

        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 environmental protection, use of renewable energy sources, promotion of efficient use of electricity [...].

        Art 61.1 states that the Minister shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to maximize the economic, social and environmental benefits of rural electrification subsidies and to promote renewable energy, among other objectives.]]

        Policy type
        • Energy efficiency
        • Renewables2
        Policy stringency
        Implementation state Implemented
        Date of decision 2001
        Start date of implementation
        End date of implementation
        High impact No
        Impact indicator


        Source or references http://www.nab.gov.bt/assets/uploads/docs/acts/2014/Electricity_act_2001_Eng.pdf
        Supports policies
        Is supported by policies
        Comments (background and assessment)
        Status Final

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