Electricity Act of Bhutan 2001
|Name of policy||Electricity Act of Bhutan 2001|
|Subnational region or state||—|
|City or local||—|
|Type of policy instrument|
|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.]]
|Date of decision||2001|
|Start date of implementation||—|
|End date of implementation||—|
|Source or references||http://www.nab.gov.bt/assets/uploads/docs/acts/2014/Electricity_act_2001_Eng.pdf|
|Is supported by policies|
|Comments (background and assessment)||—|