The Regulatory Regime For Electricity Distribution License Holders

The Electricity Market Law¹ sets forth the general principles that apply to (i) the licensing system regulating market activities; (ii) market players; and (iii) the Energy Market Regulatory Authority ("EMRA"), all of which are further detailed under secondary legislation. The Electricity Market License Regulation² contains the details of this licensing system, including the requirements for – and restrictions on – license holders. The Electricity Market Law and the License Regulation clearly distinguish the various electricity market activities from one another, and seven categories of licenses are set forth for different market activities: generation, auto-production, auto-production group, transmission, distribution, wholesale and retail.