Electricity Market Regulation and Power Sector Restructuring Law

Article 1 — Title

This Law is called the ‘Electricity Market Regulation and Power Sector Restructuring Law’, referred to herein as ‘the Law’.

Article 2 — Objectives

This Law establishes an integrated electricity framework based on supply security, economic efficiency, transparency, consumer protection, investment and regulated competition, while subjecting natural monopoly networks to strict, non-discriminatory regulation.

It specifically separates policymaking from regulation, oversight and commercial operation; prepares public companies for clear accounting and performance rules; reduces technical and commercial losses; improves metering and collection; strengthens network reliability; and facilitates new generation, storage and demand management.

Article 3 — Governing principles

Electricity activities shall follow service continuity, capacity adequacy, safety, efficiency, non-discrimination, technology neutrality, cost and tariff transparency, fair network access, vulnerable-group protection, environmental responsibility, financial sustainability and competition where economically feasible.

Financial sustainability shall not cause essential service disconnection for social-protection households without alternatives and safeguards specified by this Law and its regulations.

Article 4 — Scope

This Law applies to federal bodies, public, private and mixed companies and persons generating, transmitting, distributing, supplying, trading or storing electricity or providing balancing and ancillary services in the federal market.

Federal network, inter-governorate and inter-regional trade, import, export and international interconnection provisions apply to activities connected to the federal system, respecting regional and governorate constitutional powers without diminishing them except as the Constitution and applicable federal laws allow.

Article 5 — Definitions

For this Law, the following expressions have these meanings. Ministry: the federal Ministry of Electricity. Authority: the Federal Electricity Market Regulatory Authority established by this Law. Market: regulated arrangements for purchasing, selling and exchanging electricity, capacity and ancillary services. Transmission system operator: the company or body licensed to manage the federal transmission network and operate the system. Market operator: the body responsible for settlement, registration and market mechanisms under approved rules. Distribution company: a person licensed to operate a distribution network in a specified area. Supplier: a person licensed to sell electricity to final consumers. Eligible consumer: one permitted to choose a supplier at the relevant market-opening stage. Vulnerable consumer: one entitled to special protection because of income, social or health circumstances under published criteria. Regulated tariff: Authority-approved transmission, distribution or regulated-supply charges. Grid code: binding technical and operational rules for connection, operation, protection and quality. Losses: the difference between electricity entering the network and electricity measured and sold, including technical and commercial losses separated under an approved methodology.

Article 6 — Electricity as an economic public utility

Electricity is an essential public utility of an economic nature. The state shall ensure continuity and equitable availability within available resources, without precluding private or mixed-sector participation in activities permitted by this Law.

Article 7 — Relationship with renewable energy law

Renewable energy, distributed generation and storage projects follow this Law and market rules for grid access, metering, settlement and regulated tariffs. Specific renewable incentives, allocations and mechanisms are governed by their own law consistently with this Law.

Article 8 — Unregulated monopoly prohibited

Exclusive generation, supply or trading concessions require demonstrated supply-security necessity, a reasoned Authority decision and a limited duration. This excludes transmission and distribution networks as regulated natural monopolies.

Article 9 — Establishment

A public body named the ‘Federal Electricity Market Regulatory Authority’ is established with legal personality and financial and administrative independence, attached to the Council of Ministers, headquartered in Baghdad and permitted regional offices as needed.

Article 10 — Independence

The Authority shall exercise professional and regulatory independence. Neither the Ministry nor operators, generators, distributors or suppliers may direct its licensing, tariff, access or regulatory dispute decisions.

It shall observe Council of Ministers energy policy unless inconsistent with its statutory powers or competition, non-discrimination and consumer protection principles.

Article 11 — Board

A five-member full-time board, including chair and deputy, shall comprise electricity, economics, law, accounting or utility-regulation experts appointed by presidential decree on Council of Ministers nomination and Council of Representatives approval for five years, renewable once.

Appointments shall reflect independence and competence and exclude concurrent executive party office or direct financial interests in electricity.

Article 12 — Conflicts of interest

The chair, members and senior staff shall file statutory interest and asset declarations and shall hold no material benefit or accept gifts or services from regulated entities.

For two years after service, board members shall not take paid executive or advisory posts with entities they directly regulated. Regulations may define academic or general professional work exceptions.

Article 13 — Powers

The Authority shall grant, renew, suspend and revoke licences; approve market rules and grid, distribution and metering codes; adopt regulated tariff methods; monitor service quality; ensure non-discriminatory network access; protect consumers; resolve regulatory disputes; monitor licensees; and publish sector data and indicators.

It may lawfully request information and documents, conduct technical and financial inspections, engage independent experts and require time-bound corrective plans.

Article 14 — Market rules and codes

After public consultation, the Authority shall issue electricity market rules, transmission, distribution, metering and connection codes, service quality standards and consumer procedures, publishing current versions electronically with clear amendment histories and commencement dates.

Article 15 — Transparency and participation

Generally consequential draft regulatory decisions shall be published for at least thirty days of comments unless a reasoned emergency exists. Final decisions shall summarise material comments and acceptance or rejection reasons without disclosing legitimate trade secrets.

Article 16 — Funding

The Authority shall receive federal appropriations and licensing and regulatory service fees within statutory and regulatory limits, returning surpluses to the treasury. Its income shall not be linked to regulated entities' profits or sales in ways impairing neutrality.

Article 17 — Reporting and oversight

Annual reports to the Council of Ministers and Council of Representatives shall cover market conditions, supply, reliability, losses, collection, quality, tariffs, investment, complaints, competition and licensee obligations. Accounts are subject to Federal Board of Supreme Audit examination.

Article 18 — Ministry responsibilities after restructuring

The Ministry shall make national electricity policy and long-term strategy, conduct indicative capacity and network planning, coordinate fuel, water, land, environment and regional interconnection with Oil and other bodies, monitor energy security and represent Iraq in international technical cooperation.

After transition, it shall not exercise Authority-assigned regulatory functions or interfere in daily transmission operation or Authority tariff, licence and access decisions.

Article 19 — National capacity and network adequacy plan

Every two years, the Ministry, operator and Authority shall prepare a plan spanning at least ten years, covering demand forecasts, available, retiring and contracted capacity, fuel needs, transmission congestion, reserves, regional links and climate and technical security risks.

A non-confidential version shall guide investment mechanisms, tenders and long-term purchase contracts, without itself licensing or financially guaranteeing projects.

Article 20 — Supply security standard

On the operator's technical proposal and Ministry policy approval, the Authority shall adopt capacity adequacy, operating reserve and acceptable outage standards, periodically updated for demand growth and generation mix changes.

Article 21 — Fuel-sector coordination

Electricity, Oil and the operator shall maintain coordination on fuel demand, gas and alternative fuel availability and maintenance. Delivered fuel, conversion efficiency and output shall be measured through auditable systems.

Article 22 — Priority for existing asset improvement

Before contracting new generation, public bodies shall evaluate rehabilitation, combined-cycle conversion, congestion and loss reduction, demand management and transmission and distribution upgrades where these are cheaper and improve supply security faster.

Article 23 — Sector databases

Within their remits, the Ministry, Authority and operator shall establish unified exchange of capacity, generation, loads, fuel, failures, losses, sales, collection and investment data, defining governance, accuracy and publication frequency for a single comparable national baseline.

Article 24 — Governorate and regional planning

Network and investment plans shall consider governorate and regional needs under published priorities reflecting population density, demand growth, reliability, deprivation, losses and technical feasibility. Electricity and investment shall not be allocated on political or undisclosed grounds.

Article 25 — Investment decision responsibility

Major projects shall enter the national plan only with preliminary technical and economic studies covering need, fuel where relevant, connection, lifecycle costs, tariff or budget effects and implementation and contractual risks.

Article 26 — Functional and accounting separation

Generation, transmission, system operation, distribution and supply shall be administratively and financially separated, with no opaque cross-subsidies. Each activity requires separate audited statements even under temporarily unified public ownership.

Article 27 — Federal transmission company

Existing public transmission companies shall be reorganised into one federal public company, the ‘Iraqi Electricity Transmission Company’, owning, operating and developing the federal grid and operating the system. The Council of Ministers may adopt another legal form achieving equivalent operational unity and functional independence.

Merger or reorganisation shall finish within twenty-four months of entry into force, preserving workers' rights, contracts, assets and liabilities.

Article 28 — Independent system operation

National control and system operation shall be functionally independent of generation and supply interests. Dispatch or disconnection orders shall not favour particular generators or suppliers outside approved grid-code and market security and economic criteria.

Article 29 — Public generation companies

Public generators shall remain state-owned commercial operating companies, keeping separate plant or plant-group accounts, measuring fuel and maintenance costs, efficiency and availability, and participating under non-discriminatory market or contract rules.

After professional assessment, the Council of Ministers may merge, divide or restructure generators without creating monopolies harmful to competition or supply security.

Article 30 — Public distribution companies

Public distributors shall remain in licensed areas under regulated tariffs and binding performance indicators. Geographical or functional reorganisation may improve efficiency and accountability, separating networks from consumer supply when the Authority moves to competitive supply.

Article 31 — Public network ownership

This Law does not automatically privatise public transmission or distribution assets. Ownership transfers, long-term concessions or partnerships affecting strategic assets require lawful competent approval and valuation, feasibility and public-interest assessment.

Article 32 — Partnerships and operating concessions

Distributors may contract private management of defined areas or services, including meters, collection, maintenance and upgrades, provided Authority service, tariff and consumer rules apply and contracts use measurable performance beyond collection alone.

Article 33 — Human resources

The Ministry and companies shall plan workforce transition through job and skill inventories, retraining, voluntary or functional transfers and surplus-staff measures without arbitrary mass dismissal, prioritising market operation, metering, control, digitisation and advanced maintenance capabilities.

Article 34 — Corporate board governance

Public companies shall have technically and financially experienced boards, published performance indicators, audit and risk committees and clear separation of state ownership from daily management, consistently with public company and applicable laws.

Article 35 — No discrimination within public groups

Network controllers shall not favour affiliated generators or suppliers in connection, data, settlement, maintenance timing or access terms. Violations are serious for regulatory sanctions.

Article 36 — Licensed activities

Commercial generation, transmission, distribution, supply, market operation, commercially significant storage and regulated balancing require Authority licences. Small self-generation without grid injection and regulatory exemptions remain subject to safety and registration where needed.

Article 37 — Licence conditions

Licences shall specify activity, duration, service area where relevant, safety, solvency, technical competence, disclosure, data protection, quality, metering, reporting and connection. Discriminatory terms or restrictions lacking technical or regulatory necessity are prohibited.

Article 38 — Licensing procedures

The Authority shall publish procedures and decision deadlines. Refusals must be reasoned and appealable. Investment permits do not replace sector licences, connection approval or required environmental and security approvals.

Article 39 — Transitional licences

Existing public companies shall receive transitional licences for no more than three years from entry into force, during which accounting separation, data quality and performance plans must be met. Historical operation gives no regulatory exemption.

Article 40 — Market-opening stages

The Council of Ministers shall determine stage transitions on joint Ministry and Authority recommendation after verifying metering, settlement, grid, collection and consumer protection readiness. Time elapsed alone cannot justify competition without technical and financial prerequisites.

The first stage uses regulated central purchasing, bilateral contracts and generation competition, followed by direct contracting for eligible large consumers. Day-ahead or wider balancing markets may follow once liquidity, metering and stability conditions are met.

Article 41 — Consumer eligibility

The Authority shall specify consumption, voltage or category thresholds for eligibility at each stage, guaranteeing supplier choice while consumers retain network charges, taxes and statutory fee obligations.

Article 42 — Transitional central purchaser

Central purchasing may continue initially, subjecting purchases and new contracts to transparent competition, planning and cost rules and separating procurement accounts from transmission, distribution and final supply.

Article 43 — Power purchase agreements

The Authority and Ministry shall adopt basic long-term agreement templates addressing metering, availability, delivery, fuel, force majeure, legal changes, termination and disputes. Sovereign guarantees or unconditional payment obligations require budget and financial management law compliance and competent approval.

Article 44 — Spot and balancing markets

The Authority may progressively establish balancing and short-term energy markets after time-based metering, settlement, reliable operational data and anti-manipulation and capacity-withholding rules are in place.

Article 45 — Competition monitoring

With the Competition and Anti-Monopoly Council, the Authority shall monitor concentration, market power and manipulation. It may temporarily impose bidding limits, additional disclosure or capacity availability duties on dominant entities until lawful remedies address the problem.

Article 46 — Transmission operator duties

The operator shall run the national grid safely, economically and neutrally; manage frequency, voltage and reserves; schedule units and congestion; coordinate regional and international operators; plan grid development; and execute emergency, dispatch and disconnection orders under approved rules.

Article 47 — Open transmission access

The operator shall ensure transparent, non-discriminatory licensed access at approved charges. Refusal requires specified written technical or security grounds, identifying remedial works, costs and funding responsibility.

Article 48 — Grid code

The grid code shall cover connection, protection, power quality, frequency and voltage, load and generation forecasts, reserves, compliance testing, emergencies, maintenance restrictions, data exchange and restoration after partial or total collapse.

Article 49 — Economic dispatch

Generation schedules shall follow disclosed variable costs or applicable market bids, considering security, network constraints, fuel and technical commitments. Unjustified commercial preference for public over private entities, or vice versa, is prohibited.

Article 50 — Balancing and reserves

The operator shall competitively procure reserve, balancing, fast-response and ancillary services from qualified entities where possible. Eligible storage, demand management and distributed generation may participate under grid and market rules.

Article 51 — Transmission development plan

Every two years, the operator shall prepare a ten-year plan covering congestion, 400 and 132 kilovolt or equivalent projects, substations, control, protection, communications and new connections. The Authority shall approve regulated needs after Ministry, governorate and generator consultation.

Article 52 — Critical assets and physical security

With security bodies, the operator shall classify critical facilities and adopt protection, continuity, alternative operation and appropriate strategic transformer and equipment stocks based on risk, withholding details threatening national security.

Article 53 — Market operator

The Authority shall designate market and settlement operation. During transition, this may be an accounting- and functionally independent transmission-company unit, legally separated if assessment reveals conflicts or market maturity requires greater independence.

Article 54 — Registration and settlement

The market operator shall register participants, metering points, contracts, schedules, imbalances and settlements. Settlement shall use approved meters and published rules; proportionate financial guarantees may reduce non-payment risk.

Article 55 — International interconnection

Neighbouring-country interconnection capacity shall follow effective agreements and transparent technical and commercial rules. Imports and exports require security, cost and risk assessment; imports shall not permanently replace domestic structural reform.

The operator shall not assume international commitments requiring sovereign guarantees or public financial obligations beyond its powers. Constitutional and statutory treaty procedures shall apply.

Article 56 — Distributor obligations

Distributors shall operate, maintain and develop networks, connect eligible consumers and producers, meter energy, respond to failures, reduce technical and commercial losses and implement safety, quality and approved investment plans.

Article 57 — Loss reduction plans

Each distributor shall submit annual and three-year plans separating technical and commercial losses under one method, specifying baselines, targets, investment and actions. Part of regulated revenue and incentives or penalties shall depend on realistic targets.

Article 58 — Informal and unauthorised settlements

Existing neighbourhoods shall not be denied regular electricity solely because of urban planning status where service is legally and technically possible. Distributors and local bodies shall provide safe temporary or permanent connections and metering, without conferring land title or recognising lawful occupation.

Article 59 — Meters

Every billed or settled consumption or injection point requires an approved verifiable meter. The Authority shall schedule smart or prepaid metering where clearly feasible, prioritising high-loss areas, large loads and government, commercial and industrial customers.

Article 60 — Meter ownership and access

The Authority shall regulate ownership, installation, maintenance and replacement costs. Distributors may reasonably access meters after appropriate notice except danger or suspected tampering. Refusal of staff entry alone shall not justify disconnection where technical reading alternatives exist and safety does not require entry.

Article 61 — Accuracy and objections

Consumers may request testing and dispute readings or estimates. Regulations shall govern recalculation, refunds and instalments. Repeated long-term estimation is prohibited where suppliers or distributors caused non-reading.

Article 62 — Supply

Supply shall require separate licensing once distribution and supply are unbundled. Until then, distributors or separately accounted supply units shall perform regulated supplier duties at Authority-approved tariffs and conditions.

Article 63 — Universal service supplier

The Authority shall appoint one or more universal suppliers per area to maintain supply to households, non-eligible consumers and those losing commercial suppliers, compensating efficient costs without unjustified monopoly profits.

Article 64 — Government consumers

Government bodies shall be metered, billed and pay like other consumers; arrears are their financial obligations. Special arrangements may protect sovereign facilities, hospitals, water stations and critical services from sudden disconnection, while debts remain budget-settlement obligations.

Article 65 — Demand management

Large consumers and load aggregators may join compensated load reduction or shifting programmes where cheaper than reserve generation or compulsory curtailment. No consumer shall be compelled into a remunerated programme without a clear contract.

Article 66 — Tariff authority

The Authority shall approve transmission, distribution, regulated supply, connection and ancillary tariff methods. Tariffs require published decisions identifying cost components, assumptions, application periods and review mechanisms.

Article 67 — Tariff principles

Regulated tariffs shall reflect efficient service costs, supply quality, voltage, consumption patterns, standard losses, necessary investment and reasonable capital returns where appropriate. Consumers shall not bear proven inefficient waste, corruption or unnecessary investment.

Article 68 — Gradual cost recovery

The Authority and Electricity and Finance ministries shall establish a multiyear cost-revenue gap reduction programme after metering, collection and supply improve. Broad household increases require published social impact assessment and vulnerable-group protection.

Transition may differ by consumer group for equity, affordability and industrial competitiveness, but differences must be published, justified and not become permanent unfunded exemptions.

Article 69 — Social subsidies

Support shall gradually move from unspecified per-unit subsidy to transparent targeting of vulnerable consumers or basic consumption bands using social protection and other official eligibility databases, accounting for large households and electricity-dependent medical needs.

Article 70 — Subsidy transparency

Electricity subsidies shall appear separately where possible in budgets and final accounts. Finance shall annually disclose estimated direct and indirect support and government obligations, including fuel priced below economic cost.

Article 71 — Consumption bands

Progressive household tariffs may protect basic consumption and discourage excess, using current actual data and not penalising shared or inaccurate meters before metering is corrected.

Article 72 — Time-based tariffs

Peak-time or seasonal tariffs may apply to technically responsive consumers after suitable metering and clear information. Initial household participation shall be optional unless maturity and protection are demonstrated.

Article 73 — Connection and service charges

Connection, reconnection, meter testing and other charges shall reflect reasonable standard costs and appear in a unified schedule. Unpublished charges or charges without an effective decision are prohibited.

Article 74 — Debts and arrears

The Authority shall establish common historical debt rules including instalments, payment incentives and dispute resolution. Selective commercial or government debt cancellation requires legal authority and a clear financial decision.

Article 75 — Regulatory incentives

Performance regulation may reward transmission or distribution loss reduction, continuity and collection targets and reduce allowed revenue or impose penalties for management failures, excluding force majeure or supply shortages beyond company control.

Article 76 — Basic rights

Consumers have rights to safe, reliable service under published standards, clear contracts or conditions, understandable bills and tariffs, data protection, metering and bill objections, programmed outage reasons where possible, complaints and timely answers.

Article 77 — Quality standards

The Authority shall set mandatory outage duration and frequency, repair, connection, complaint, billing accuracy and voltage indicators. Each distributor shall have staged improvement reflecting network conditions without perpetually excusing poor performance.

Article 78 — Service failure compensation

The Authority shall provide automatic or requested compensation for exceeding connection, restoration, billing or complaint standards, excluding force majeure or declared emergency orders unless proven preparedness or maintenance failures caused the breach.

Article 79 — Non-payment disconnection

Disconnection requires clear notice, adequate time and payment or instalment options where permitted, with additional vulnerable and critical-medical protection. This does not extinguish debt or deliberate tampering enforcement.

Article 80 — Planned outages and shortage management

During shortages, distributors and the operator shall use fair, published curtailment schedules, protecting critical loads where possible. Undisclosed permanent commercial or political exemptions are prohibited.

Article 81 — Complaints

Each supplier and distributor shall maintain a unified complaint channel and tracking number, responding within Authority deadlines. Consumers may escalate when deadlines pass or solutions are unsatisfactory.

Article 82 — Out-of-court settlement

The Authority shall establish independent, simplified settlement for low-value billing, connection, quality and meter disputes, with decisions appealable to competent courts.

Article 83 — Vulnerable consumers

With Labour and Social Affairs and Health, the Authority shall define updatable eligibility-based vulnerability and protection criteria, not geographical or employment affiliation.

Article 84 — Awareness and efficiency

Suppliers and distributors shall regularly inform consumers about usage, tariffs, conservation and safety. Bills or applications may include historical usage comparisons while protecting privacy.

Article 85 — Competitive new capacity

New generation or service needs shall be openly competed where market conditions permit. Tender documents must clearly identify connection points, government fuel sources where relevant, qualification, currency and payment risks and guarantees.

Article 86 — Exceptional direct contracting

Major direct generation contracts require emergencies, proven technical or security reasons, or failed genuine competition. Exception reasons and main financial obligations shall be published after signature subject to legitimate commercial and security confidentiality.

Article 87 — State guarantees

Sovereign or government payment guarantees require financial-law compliance and assessment of risk, contingent obligations and public debt effects, with registration and disclosure in official financial documents.

Article 88 — Land and rights of way

Applicable expropriation, rights-of-way and compensation laws govern grid projects. Harm shall be minimised and least-impact routes chosen where technically and economically reasonable. Permanent rights over others' property require legal basis and fair compensation.

Article 89 — New-project connection

Operators shall provide connection studies within standard Authority periods, identifying works, costs, responsibilities and timing. Shared or publicly beneficial expansion costs shall be fairly allocated without unjustifiably charging the first applicant the entire common investment.

Article 90 — Uncompleted projects

Reserved connection capacity or priority may be withdrawn when objective milestones are missed without acceptable excuse, preventing capacity and site hoarding at ready projects' expense.

Article 91 — Local content and knowledge transfer

Tenders may include proportionate local content, training, maintenance and knowledge transfer criteria without unjustified cost increases or competitive exclusion, separately from essential safety and technical qualification.

Article 92 — Existing contracts

Pre-existing generation, transmission and distribution contracts remain valid on their terms. From entry into force, safety, metering, data and non-discriminatory access apply insofar as not unlawfully impairing acquired rights. Conflicting terms shall change by agreement or contractual and legal mechanisms.

Article 93 — Disclosure of regulated contracts

Public bodies and the Authority shall publish key power purchase, concession and operating contracts imposing state or tariff obligations, including counterparties, duration, capacity, price or methodology and material guarantees. Specified trade secrets may be withheld, but secrecy shall not conceal public financial obligations.

Article 94 — Beneficial ownership

Licences and major contracts require ultimate beneficial ownership disclosure to the Authority and competent bodies under company, anti-money-laundering and applicable laws. False information may justify suspension or revocation after defence rights are ensured.

Article 95 — Open operational data

The operator shall periodically publish aggregate loads, generation, availability, constraints, interconnections and major failures. Distributors shall publish service-area loss, collection and quality indicators without threatening security or privacy.

Article 96 — Personal data protection

Identifiable smart-meter and account data are personal data. Commercial use or sharing beyond billing, operation, regulation and lawful investigation requires consent or legal basis, observing personal data law when effective.

Article 97 — Cybersecurity

Critical power operators shall meet cybersecurity, continuity, identity and access, incident response, backup and authorised penetration-testing requirements under national cybersecurity law and a coordinated sector code.

Article 98 — Emergency plans

Transmission, distribution and generation companies shall plan for fuel loss, grid collapse, disasters, attacks and serious faults, including command chains, alternative communications, critical stocks, regular exercises and restoration.

Article 99 — Emergency priorities

In emergencies, the operator may order load reduction, consumption restrictions or out-of-merit dispatch only as long and extensively as necessary to protect the system. Decisions shall be documented and reviewed by the Authority where substantial regulated costs result.

Article 100 — Regulatory inspection

Authorised Authority staff may enter licensed business premises during working hours or danger, and request relevant records, metering data and contracts, respecting legal safeguards and confidentiality.

Article 101 — Compliance orders

Established licensee violations shall receive warnings specifying correction and timing. In dangerous cases, the Authority may immediately stop specified practices or operations until danger ends through reasoned, proportionate orders.

Article 102 — Regulatory fines

Implementing regulations may set graduated fines within statutory ceilings, considering severity, size, repetition, benefit and harm. Fines shall not replace remediation or original obligations.

For serious violations, legal-person fines shall not exceed one per cent of annual Iraqi licensed-activity revenue or one billion Iraqi dinars, whichever is lower. A court may double the ceiling on Authority request for repeated serious violations within three years.

Article 103 — Serious violations

Serious violations include deliberate settlement or metering manipulation, discriminatory network access, artificial capacity withholding, concealment of required material information, unlicensed operation where licensing is mandatory, and failure to comply with lawful safety or emergency orders.

Article 104 — Electricity theft and meter tampering

Distributors shall document unauthorised connections and tampering through reviewable technical procedures. They may recover unmetered energy under approved estimation, charge regulated remediation costs and disconnect continuing hazards, referring criminal acts under applicable penal laws.

Technical or meter faults alone do not establish theft intent. Licensees bear the burden of proving deliberate tampering in disputes.

Article 105 — Licence suspension and revocation

Serious repeated breach, insolvency, system endangerment or fraudulent licensing may justify suspension or revocation after defence opportunities, with continuity arrangements protecting consumers.

Article 106 — Appeal

Interested parties may lodge grievances within thirty days of notice or publication as applicable. The Authority shall decide within thirty days, with appeal to the Administrative Court under law. Appeals do not suspend urgent safety measures unless the court decides otherwise.

Article 107 — Other liabilities

Regulatory sanctions do not preclude civil, criminal or disciplinary liability under other laws, respecting general rules against duplicate penalties of the same nature for the same facts.

Article 108 — Establishment stage

Within ninety days of entry into force, the Council of Ministers shall form a transition committee under a designated chair with Electricity, Finance, Planning, its General Secretariat, Supreme Audit and relevant bodies. It shall inventory regulatory functions, assets, contracts, staff and data for restructuring and finish within eighteen months.

Article 109 — Authority commencement

The board shall be appointed within six months and powers assumed progressively. The Ministry shall temporarily retain necessary regulatory functions until documented transfer, for no more than twelve months unless extended by law or reasoned Council of Ministers decision for up to six additional months.

Article 110 — Codes and rules

Within eighteen months of board commencement, the Authority shall issue core licence, tariff, grid, distribution, metering and quality rules. Existing technical rules may temporarily continue where consistent.

Article 111 — Unified transmission operation

Transmission companies shall be unified or placed under one federal operational command within twenty-four months. National control functions shall transfer to the new operator without service interruption.

Article 112 — Separate accounts

All regulated public and private electricity companies shall prepare separate activity accounts and standard cost statements from the second financial year following entry into force, forming tariff and incentive baselines.

Article 113 — Transitional tariff review

Within eighteen months of beginning operations, the Authority shall review tariffs, subsidies, collection, debts and quality and propose a three-to-seven-year path to greater financial sustainability with vulnerable protection. Implementation requires Council of Ministers approval of financial and social effects.

Article 114 — Ministry Law amendment bill

Within one year, government shall submit amendments to Ministry of Electricity Law No. (53) of 2017 removing textual conflicts and redefining units after regulatory transfer and transmission unification. Non-conflicting provisions remain effective pending amendment.

Article 115 — Previous instructions

Electricity Supply and Conditions Instructions No. (1) of 2023 and related statements and orders remain effective insofar as consistent until Authority rules replace them. Regulatory service-charge amendment powers transfer when its tariff competence begins.

Article 116 — Regulations and instructions

The Council of Ministers may issue implementing regulations; the Authority, instructions, rules and codes within its powers; and the Ministry, policy and planning instructions. No instruction may create a fee, sanction or substantive obligation without statutory basis.

Article 117 — Conflicting provisions

Conflicting provisions are repealed only to remove conflict. This does not abolish lawful contractual rights or existing safety rules unless replaced by equal or stronger protection.

Article 118 — Entry into force

This Law takes effect ninety days after Official Gazette publication, except provisions with specific transition dates.