This Law codifies a systematic regime for the electricity and natural gas sectors, with a focus on the legal and functional separation of energy-related activities. It requires the unbundling of transmission and distribution system operators from generation and supply entities in order to promote neutrality within the market. The Energy and Water Services Regulatory Commission is vested with broad regulatory authority, including the issuance of licenses, oversight of market conduct, and the determination of regulated tariffs for access to infrastructure. To support market liquidity, the Law formalizes the role of the Nominated Electricity Market Operator, responsible for administering organized trading platforms.
Within the gas sector, the scope of regulation is expanded to include hydrogen alongside natural gas. The Law sets out the rights and obligations of transmission and distribution system operators, including the requirement to provide non discriminatory third party access to network infrastructure. It also establishes obligations related to supply security, such as the implementation of emergency procedures, risk assessments, and requirements concerning storage capacity and infrastructure resilience. Provisions addressing thermal energy are included, with an emphasis on improving the efficiency of district heating systems and introducing standardized heat metering practices based on actual consumption.
The Law defines and recognizes the roles of “active consumers” and “prosumers,” granting households and small enterprises the ability to generate, store, and supply electricity to the grid, subject to proportionate administrative requirements. It also establishes a legal framework for Citizen Energy Communities, enabling collective participation in renewable energy generation and management.
Consumer protection measures are incorporated into the structure of the market, with an emphasis on transparency and accessibility. The Law mandates the deployment of smart metering systems to enable accurate and timely consumption data. It provides consumers with the right to switch energy suppliers within a specified timeframe and without additional charges, thereby supporting retail competition. In addition, it defines the roles of the Universal Supplier and the Supplier of Last Resort to ensure continuity of supply for consumers who do not engage in the competitive market.
The Law addresses social dimensions through a formalized methodology for identifying energy poverty. In fact, it requires the development of targeted support programs for vulnerable consumers, defined by specific socio-economic and health criteria. These protections include prohibitions on disconnecting electricity for the most vulnerable during winter months and the provision of financial and non-financial aid for energy bills. These measures are designed to be "market-neutral," meaning the support is provided through direct social programs rather than by artificially suppressing market energy prices, which would otherwise discourage energy efficiency.
Finally, the Law provides for the alignment of energy sector regulation with environmental and related legal frameworks. It requires that energy infrastructure projects comply with applicable environmental standards and obtain the necessary permits. In the context of hydropower, it affirms the precedence of water management regulations, including requirements related to water use rights and ecological flow. The Law also coordinates energy-related permitting procedures with broader construction and planning regulations to ensure compliance with technical, safety, and urban development standards prior to grid connection.