Bhutan Electricity Authority

Functions

Functions of the Authority

Functions of the Authority are:

i) to develop regulations, standards, codes, principles and procedures, which include, but are not limited to the following;

  • performance standards, including minimum technical and safety requirements for construction, operation and maintenance of generation, transmission and distribution facilities;
  • tariff-setting, including tariffs for generation not regulated by power purchase agreement, transmission, distribution and retail sale. These regulations should also comprise terms and conditions for connection fees and investment contribution from customers, and for provision of access to the transmission grid and distribution networks;
  • subsidies to entities carrying out non-economic viable electricity supply based on the policies and planning executed by the 14
    Minister;
  • requirements for Licensees’ reporting, accounting and issuance of information to the Authority;
  • system operation, including dispatch of generation; and
  • levies, charges or royalties to be paid by Licensees.

ii) to process applications and issue, modify and revoke licences for generation, transmission, system operation, export, import, distribution and sale of electricity;

iii) to monitor the performance of Licensees and their compliance with provision of this Act, regulations, standards, codes, licences and contracts approved by the Authority and concession agreements entered into between the Minister and Licensees;

iv) to determine, or approve tariffs proposed by the Licensees, and review existing tariffs;

v) to prescribe and collect fees, charges or royalties from Licensees;

vi) to impose any fines, sanctions or penalties for any breach of provisions of this Act, regulations, standards, codes, licences or contracts to be approved by the Authority, and concession agreements entered into between Licensees and 15 the Government;

vii) to establish a dispute resolution process and settle disputes between Licensees and between Licensees and customers relating to the enforcement of this Act, regulations, codes, standards and licences issued under this Act, contracts approved by the Authority and concession agreements entered into between the Minister and Licensees, or otherwise any other arrangement for settlement of disputes which are not determined by the mentioned legal instruments; and

viii) any other duties or responsibilities delegated by the Minister.

The Authority shall, in the performance of his functions:

i) ensure the reliability, quality, security and efficiency of electricity supply;

ii) encourage competition in electricity generation, transmission and supply;

iii) ensure non-discriminatory access to the transmission and distribution system;

iv) ensure a fair balance of the interests of the public, customers and participants in the electricity sector;

v) facilitate the development of generation, transmission and distribution of electricity throughout the country; and

vi) ensure the protection of the natural resources, the 16 environment and other public interests affected by the development of electricity supply.