Licensing in Electricity Market

Licensing in Electricity Market

energy

The company that intends to receive license shall be a legal entity established as a joint stock or limited liability company.

In case it is established as joint stock company, all of its shares, excluding the ones subject to stock exchange, shall be registered under related names. Such company shall receive one license for each activity and facility.

Licenses are granted for 49 years at most. The minimum period for production, distribution and transmission licenses is 10 years. Each license is subject to a determined fee designated by the Energy Market Regulatory Authority (“EMRA”). The supervision of the electricity distribution is carried out by the Ministry of Energy and Natural Resources.

The Obligation to Receive Under-License

The company that intends to operate in the market shall receive a license for each activity and each facility. In case the company operates with the production activity in more than one facility, he shall receive under-license for each facility. Such licenses cannot be transferred.

Activities subject to Licensing are;

  • Production,
  • Transmission
  • Distribution,
  • Wholesale,
  • Retail Sale,
  • Export,
  • Import,
  • Market Management

The name of the wholesale license is procurement license. The company that intends to export and import shall include such import and export authorities into the procurement license.