BHUTAN: Electricity Act of Bhutan 2001

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2001
Effective Start Year: 
2001
Scope: 
National
Document Type: 
Act
Economic Sector: 
Power
Energy Types: 
Power, Renewable
Issued by: 
Bhutan Electricity Authority
Source: 
Bhutan Electricity Authority
File: 
Electricity Act of Bhutan 2001
Overall Summary: 
The act provides the legal framework for regulation of electricity industry in the Kingdom; provides mechanisms for licensing and regulating the operations of power companies; defines the roles and responsibilities of suppliers and protect the interests of the general public.
Access
Energy access priorities: 
61.1 The Minister shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to: i) achieve equitable regional distribution access to electricity; ii) maximize the economic, social and environmental benefits of rural electrification subsidies; iii) promote extension of the grid and development of off-grid electrification; iv) promote renewable energy and v) stimulate innovations within suppliers.
Renewable Energy
RE priorities: 
3.1 The objectives of this Act include, but are not limited to the following: [...] v) to promote development of renewable energy resources; [...] --- 61.1 The Minister shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to: [...] iv) promote renewable energy [...]
Pricing
Energy pricing: 
The Authority may regulate: i) tariffs for the sale of electricity to customers by Licensees; ii) charges for connection to, and the use of any distribution system; iii) charges for connection to, and the use of any transmission system; iv) tariffs for generation not regulated by power purchase agreement; and v) other such prices and charges in respect of goods and services provided by Licensees.
Governance
Energy institutional structures: 
Establish Bhutan Electricity Authority, which shall have functions to: i) develop regulations, standards, codes, principles and procedures regarding performance standards, tariff-setting, requirements for licensees' reporting, system operation and subsidies; ii) process applications and issues, modify and revoke licences for generation, transmission, system operation, export, import, distribution and sale of electricity; iii) monitor the performance of licensees and their compliance with provision of this Act, regulations, standards, codes, licences and contracts approved by the Authority and concession agreements entered into between the Minister and Licensees; iv) determine, or approve tariffs proposed by the licensees, and review existing tariffs; v) prescribe and collect fees, charges or royalties from licensees; vi) impose any fines, sanctions or penalties for any breach of provisions of this Act, regulations, standards, codes, licences or contracts to be approved by the Authority; vii) establish a dispute resolution process and settle disputes between Licensees and customers relating to the enforcement of this Act, regulations, codes, standards and licences issued under this Act.