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  5. Utility Regulation

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Energy & Utilities

Utility Regulation

Who imposes the public-service obligation?

The government, after consultation with the competent authorities, the commission and the Energy Community Secretariat; the obligation is temporary and regularly reviewed.

Which activities require a licence?

Electricity generation, transmission, distribution and market operation, the corresponding gas activities and water supply; exceptions include own-consumption generation off-grid and small or micro plants.

What must a licence seeker substantiate?

Technical, economic, financial and operational capabilities, quality-assurance measures and, where needed, the capacity to perform public-service obligations.

What about compensation?

Compensation or an exclusive right is granted transparently and must not exceed costs, taking into account revenue and reasonable profit; the tariff is set by the commission.

What is the transition deadline for authorization?

An undertaking operating under an old authorization must apply within 2 months of the law's entry into force.

5 min·9 Jan 2026

The regulation of the utility sphere under the Law on Energy is built on five interconnected blocks of norms: the general principles, the public-service obligation institution, mandatory authorization (licensing), the licence conditions, and the transition rule for authorization. This page explains all five together — it is in their combination that the legal map of the utility business lies.

General principles

The principles of regulation include: the safety and reliability of the operation of systems; the safe supply of electricity and natural gas to consumers; unrestricted access to systems and the right to change supplier; competition, transparency, non-discrimination and legal certainty; the independence of transmission and distribution from commercial interests; increased efficiency and the promotion of smart, environmentally safe technologies. These principles are the starting point for interpreting every detailed norm.

Updated: 14 Oct 2026