Egypt’s Electricity Law No. 87 of 2015 — Full English Translation

Issued by: President Abd El-Fattah El-Sisi | Published: Official Gazette, Issue 27 bis (c), 8 July 2015 | Effective: 9 July 2015 | As amended by: Law No. 192 of 2020 and Law No. 70 of 2021

The Arabic official text is authoritative. This translation is prepared for reference purposes only.

Preamble

Law No. 87 of 2015, issued on 7 July 2015, published on 8 July 2015 in the Official Gazette, Issue 27 bis (c), effective as of 9 July 2015.

Concerning: The promulgation of the Electricity Law.

Abd El-Fattah El-Sisi — President of the Republic

Having reviewed the Constitution; and Law No. 308 of 1955 on Administrative Seizure; and Law No. 87 of 1960 on General Mobilization; and Law No. 63 of 1974 on Electricity Sector Facilities; and Law No. 12 of 1976 establishing the Egyptian Electricity Authority; and Law No. 13 of 1976 establishing the Nuclear Power Plants Authority; and Law No. 55 of 1977 on the Establishment and Operation of Thermal Machinery and Steam Boilers; and the Local Administration Law (No. 43/1979); and the Joint-Stock Companies Law (No. 159/1981); and Law No. 102 of 1986 establishing the New and Renewable Energy Authority; and Law No. 10 of 1990 on Expropriation for Public Benefit; and the Capital Market Law (No. 95/1992); and the Investment Guarantees and Incentives Law (No. 8/1997); and Law No. 18 of 1998 on electricity distribution companies; and the Securities Depository Law (No. 93/2000); and Law No. 164 of 2000 on the Egyptian Electricity Holding Company; and the Competition Protection Law (No. 3/2005); and the Building Law (No. 119/2008); and the Nuclear Activities Law (No. 7/2010); and Decree-Law No. 203 of 2014 on renewable energy incentives; and Decree-Law No. 17 of 2015; and following the approval of the Council of Ministers and the advice of the State Council;

The following law is enacted:

Issuance Articles

Article 1 (Issuance)

The provisions of the accompanying Electricity Law shall apply to the regulation of all activities and works relating to the electricity utility.

Article 2 (Issuance)

The Electricity Regulatory and Consumer Protection Authority, established by Presidential Decree No. 339 of 2000, shall be reorganised in the manner set out in the accompanying Law.

Article 3 (Issuance)

The minister responsible for electricity and renewable energy affairs shall issue the Executive Regulations of the accompanying Law within six months of its effective date. Entities currently engaged in the electricity utility shall bring their affairs into conformity with the provisions of the accompanying Law within six months of the date of issuance of its Executive Regulations, unless this Law prescribes different time limits.

Article 4 (Issuance)

Law No. 63 of 1974, paragraph (e) of Article 2 of Law No. 55 of 1977, and Presidential Decree No. 339 of 2000 — all as referred to herein — are hereby repealed. Any provision contrary to the provisions of the accompanying Law is likewise repealed.

Article 5 (Issuance)

This Decree-Law shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication.

Chapter One — Definitions

Article 1

For the purposes of this Law, the following terms and expressions shall have the meanings assigned to them below:

The Ministry: The ministry responsible for electricity and renewable energy affairs.

The Competent Minister: The minister responsible for electricity and renewable energy affairs.

The Authority (ERCPA): The Electricity Regulatory and Consumer Protection Authority.

The Administrative Authority: The competent local administration units.

The Organization: The New and Renewable Energy Authority.

Electricity Utility Parties: All entities engaged in the production, transmission, operation of the transmission network, distribution, and sale of electricity.

Egyptian Electricity Holding Company: The company established pursuant to Law No. 164 of 2000 referred to herein.

Extra-High Voltage: Voltages of 132 kilovolts (kV) or more.

High Voltage: Voltages from 33 kV to 66 kV.

Medium Voltage: Voltages above 1 kV and below 33 kV.

Low Voltage: Voltages up to 1 kV.

Transmission Network: Electrical networks interconnected at extra-high and high voltages.

Distribution Networks: Electrical networks interconnected at medium and low voltages.

Renewable Energies: Natural, inexhaustible forms of energy that can be used for electricity production.

Electricity Production Companies: Companies licensed to produce electricity from primary sources and sell it to the Network Operator, subscribers, or accredited distributors.

Electricity Distribution Companies: Companies licensed to distribute and sell electricity over medium and low voltage networks.

Permit: The document issued by the Authority to commence the construction or expansion of any electricity activity.

License: The document issued by the Authority to commence the operation of any electricity activity following the issuance of a permit.

Permit Fee: The financial consideration paid by the permit applicant to the Authority for the issuance and annual renewal of the permit, as determined by the Board of Directors not to exceed the maximum prescribed by this Law.

License Fee: The financial consideration paid by the license applicant to the Authority for the issuance and annual renewal of the license, as determined by the Board of Directors not to exceed the maximum prescribed by this Law.

Network Operator: The Egyptian Electricity Transmission Company (EETC).

Market Operator: A unit with independent financial and administrative standing within the Egyptian Electricity Transmission Company, responsible for managing the competitive electricity market, organizing supply and demand bids, and conducting accounting and settlements in accordance with trading and settlement rules approved by the Authority.

Supplier: Electricity production companies or accredited distributors.

Accredited Distributor: Any legal person licensed to conclude purchase or sale transactions or provide services in the field of electricity on behalf of and for the account of producers, distributors, or subscribers.

Electricity Transmission: The transmission of electricity over extra-high and high voltage networks.

Consumer: Any natural or legal person who uses or benefits from electricity services.

Subscriber: A consumer who has contracted with one of the electricity utility parties.

Eligible Subscriber: A subscriber who has the right to freely choose their own electricity supplier.

Non-Eligible Subscriber: A subscriber who does not have the right to freely choose their own electricity supplier.

Tariff: The electricity sale prices approved by the Authority for non-eligible subscribers at all voltage levels and for all uses, in accordance with the general supply quality standards approved by the Authority and the conditions attached to such prices.

Competitive Electricity Market: A market based on free competition through which eligible subscribers may contract with production companies or accredited distributors via bilateral contracts to meet their electricity needs; it also encompasses balancing energy and ancillary services transactions.

Regulated Market: A market in which transactions between electricity utility parties and non-eligible subscribers take place in accordance with contract templates and tariffs approved by the Authority.

Unfair Competition: Any act carried out by an electricity utility party that restricts, limits, or damages free competition.

Trading and Settlement Rules: The rules on the basis of which commercial transactions are conducted between electricity utility parties, as referred to in Article (33) of this Law.

Recovered Energy: The latent energy contained in waste in its various forms that can be reused to generate electricity.

Ancillary Services: Services purchased from electricity production companies that are required for the safe and stable operation of the transmission network, including energy needed to compensate for electrical losses, voltage regulation, reserve generation capacities, and others.

Balancing Energy: Electrical energy purchased through the Network Operator on behalf of any licensed producer or eligible subscriber to maintain the stability of the electricity transmission network.

Energy Source Certificate: A document issued by the Authority for every one megawatt-hour (MWh) to certify that the electrical energy is generated from a renewable source; valid for twelve months and may be traded separately from the electricity generated.

Electricity Strategy: The strategy prepared by the Ministry and approved by the Council of Ministers, setting the objectives of the electricity sector and the appropriate means to achieve such objectives, ensuring sustainable development in the medium and long term.

Electricity Policy: The overall policies set by the Ministry for the electricity sector to implement the Electricity Strategy, including plans and programs related to the institutional framework, securing electricity supply, encouraging investment, research and development, efficiency improvement, competition protection, environmental preservation, and cooperation with other countries.

Chapter Two — Regulation of the Electricity Utility

Section One — The Electricity Regulatory and Consumer Protection Authority (ERCPA)

Article 2

The Electricity Regulatory and Consumer Protection Authority is an independent public authority with legal personality, independent of the electricity utility parties, with its principal headquarters in Cairo. The Board of Directors may, by decision, establish branches or offices within the Republic.

Article 3

The Authority aims to regulate, monitor, oversee, and develop all matters relating to electricity activities — production, transmission, distribution, and consumption — so as to ensure their availability, efficiency, quality, and continuity in meeting the requirements of various uses at the most appropriate prices, while preserving the environment, attracting and encouraging investment within a framework of lawful free competition, and taking into account the interests of consumers and electricity utility parties. The Authority also aims to make information available without discrimination and within a framework of equality and freedom of competition.

Article 4

In pursuit of its objectives, the Authority may carry out all acts and works necessary for that purpose. In particular, it may:

1. Develop plans, programs, and management rules and methods consistent with its activities.
2. Establish the general principles and rules to be observed by electricity utility parties that safeguard their interests and the interests of consumers, and promote free competition.
3. Establish sound economic rules and bases for calculating the tariff for non-eligible subscribers, electricity exchange prices in the regulated market, and charges for the use of transmission and distribution networks — within a framework of equality, fairness, and transparency — subject to approval by the Council of Ministers and publication by the Authority.
4. Establish rules and procedures to ensure the protection of consumers’ rights.
5. Verify the security of electricity supply to consumers by reviewing investment plans in production, transmission, and distribution, in coordination with relevant authorities.
6. Establish technical quality standards and performance benchmarks for the various electricity services.
7. Monitor the availability of the technical, financial, economic, and administrative competencies required by electricity utility parties to achieve continuity and quality of services.
8. Approve the tariff for non-eligible subscribers at various voltage levels and for all uses, electricity exchange prices in the regulated market, and charges for the use of transmission and distribution networks.
9. Approve any changes in the ownership or control of licensed parties’ assets, and approve liquidation procedures.
10. Impose sanctions specified in Article (23) of this Law in the event of breach of the rules of lawful free competition or violation of transparency and equal opportunity.
11. Establish rules and procedures for promoting and encouraging the production and use of electricity from renewable sources, and improving the efficiency of electricity use.
12. Issue Energy Source Certificates to electricity producers from renewable sources.
13. Establish systems and rules for receiving, registering, studying, investigating, and deciding on consumer complaints.
14. Consider and resolve any disputes that may arise between electricity utility parties in connection with the operation and regularity of the utility.
15. Make available information, reports, and recommendations that assist electricity utility parties and subscribers in knowing their rights and obligations.
16. Grant permits and licenses for the construction, management, operation, and maintenance of electricity production, distribution, and sale projects.

The Authority may engage such experts as it deems appropriate, with determination of their financial remuneration.

The Authority shall submit to the Prime Minister within three months of the end of the financial year an annual report on its activities and developments in the electricity market.

Article 5

The Authority shall be managed by a Board of Directors chaired by the Competent Minister, with the following members:

1. The Chief Executive Officer.
2. Four members representing consumers: the President (or nominee) of the Competition Protection Authority; the President (or nominee) of the Consumer Protection Authority; the President (or nominee) of the Federation of Egyptian Industries; and the President (or nominee) of the Federation of Chambers of Commerce.
3. Three members representing the electricity utility, nominated by the Competent Minister.
4. Four persons with expertise in technical, financial, legal, and civil society fields who are not employed by any electricity utility party, selected by the Prime Minister.

The composition of the Board, the remuneration of its members, and attendance allowances shall be determined by a decision of the Prime Minister for a term of three years renewable once for a similar period.

The Board may form committees from among its members and may also delegate its Chairman or the Chief Executive Officer to exercise some of its powers.

Article 6

The Board of Directors is the authority responsible for managing the Authority’s affairs. In particular, it may:

1. Approve plans and work programs of the Authority.
2. Approve rules for the exercise of all electricity activities to ensure freedom of competition, and take necessary measures in case of violation.
3. Approve the electricity supply security report referred to in Article (35) and refer it to the Ministry.
4. Establish rules, conditions, and procedures for granting, renewing, suspending, and cancelling permits and licenses.
5. Approve the granting, renewal, suspension, and cancellation of permits and licenses for all electricity utility activities.
6. Determine fees for the issuance of permits and licenses and charges for services provided by the Authority.
7. Approve the conditions to be met in contracts relating to the use of the transmission network and distribution networks.
8. Approve the general electricity supply quality standards.
9. Approve the tariff, network usage charges, and electricity exchange prices in the regulated market.
10. Approve the rules, conditions, and procedures for the issuance and trading of Energy Source Certificates.
11. Establish a monitoring and oversight system and determine performance standards for electricity utility parties.
12. Approve decisions relating to the resolution of disputes between electricity utility parties.
13. Approve the annual planning budget and final accounts of the Authority.
14. Approve the organizational structure of the Authority and issue internal regulations, without being bound by governmental rules, provided that such regulations are issued by decision of the Competent Minister.
15. Accept donations, gifts, and grants not inconsistent with the Authority’s purposes.
16. Consider such matters as the Chairman deems appropriate to present to the Board.

Article 7

The Board of Directors shall convene at least once per month and whenever necessary. Its meetings shall not be valid unless the Chairman and a majority of members are present, including at least one consumer representative and one electricity utility party representative. Decisions shall be adopted by majority vote; in the event of a tie, the Chairman’s vote shall be the casting vote.

The Board may invite any persons it deems useful to attend its sessions without the right to vote.

Article 8

The Authority shall have a Chief Executive Officer appointed by the Prime Minister upon the recommendation of the Competent Minister for a term of three years renewable once. The Chief Executive Officer shall be accountable to the Board of Directors for the technical, administrative, and financial conduct of the Authority’s work. In particular, he may:

1. Manage the Authority, conduct its affairs, and exercise general supervision over its work.
2. Prepare and present matters to the Board of Directors.
3. Implement decisions of the Board of Directors.
4. Prepare the draft annual planning budget and final accounts and present them to the Board.
5. Submit periodic reports to the Board on the Authority’s activities, achievements, performance obstacles, and proposed solutions.
6. Exercise other powers specified in the Authority’s internal regulations.
7. Carry out such work or tasks as the Board may assign.

The Chief Executive Officer may delegate one or more directors within the Authority to exercise some of his powers.

Article 9

The Chief Executive Officer shall represent the Authority before the courts and in its relations with third parties.

Article 10

The financial resources of the Authority shall consist of: (1) financial appropriations allocated to it in the State General Budget; (2) proceeds from permit and license fees; (3) consideration for works, tasks, and services performed in respect of non-licensees consistent with its purposes; (4) returns from the investment of the Authority’s funds; and (5) donations, gifts, and grants accepted by the Board.

Article 11

The Authority shall have an independent budget prepared on the model of economic authority budgets. Its financial year shall begin and end with the State’s financial year. All accounts shall be deposited in the unified treasury account at the Central Bank. The Authority shall retain twenty-five percent (25%) of the annual surplus and carry it forward from year to year.

Article 12

For the purpose of recovering its entitlements, the Authority may initiate administrative seizure procedures in accordance with the provisions of Law No. 308 of 1955.

Section Two — Permits and Licenses for Electricity Activities

Article 13

No person may engage in any electricity production, distribution, or sale activity without obtaining a license from the Authority in accordance with the provisions of this Law and its Executive Regulations. Prior to issuing operating licenses, the Authority may issue permits to commence construction or expansion of such activities in accordance with the rules and controls determined by the Board of Directors. Decisions regarding permits and licenses shall be published in the Official Gazette and in one widely circulated daily newspaper, at the expense of the permit or license holder. The granting of a license must not result in any monopolistic position within the geographic scope of any licensee.

Any entity engaging in electricity production, distribution, or sale activities must take the form of an Egyptian joint-stock company.

Electricity producers for their own use may be exempted from permits and licenses. The Executive Regulations shall set out the conditions and controls governing such exemption.

Article 14

Applications for permits or licenses shall be submitted on forms prepared by the Authority containing the required data and accompanied by the necessary documents as determined by the Executive Regulations.

A permit or license application must be decided upon within sixty days from the date on which the applicant fulfils all required data and documents. Any refusal or postponement beyond the prescribed period must be by a reasoned and communicated decision.

Article 15

Permits shall include: (1) the purpose; (2) the duration; (3) the type of service (production — distribution); (4) the permit fee — a maximum of one thousand Egyptian pounds per megawatt of permitted capacity, and no less than ten thousand Egyptian pounds; (5) the geographic boundaries; (6) obligations regarding occupational safety, health, and environmental laws and energy efficiency standards; and (7) any other data specified by the Executive Regulations.

Article 16

The term of a license shall be a maximum of twenty-five years, renewable for similar or partial periods. The Authority shall annually issue a certificate confirming the continuation of the license’s validity after verifying the licensee’s compliance. In the event of non-compliance, the sanctions prescribed by this Law shall apply.

Article 17

Licenses shall include: (1) the term; (2) the type of service (production — distribution — purchase — sale); (3) the license fee — a maximum of one per thousand of the price of each unit of electricity produced, purchased, or in respect of network usage charges; (4) the geographic boundaries; (5) the quality compliance obligation; (6) the approved tariff structure; (7) the electricity exchange price structure; (8) network usage charge structure; (9) Environmental Affairs Agency approval; (10) obligation to maintain separate accounts for each licensed activity; (11) maximum indebtedness levels; (12) periodic reporting obligations; (13) non-discrimination and complaints system obligation; (14) safety, health, and environmental compliance; (15) obligation not to breach free competition rules; (16) obligation to notify the Authority of any asset ownership modifications; and (17) other data specified by the Executive Regulations.

Article 18

Without prejudice to laws governing the confidentiality of information and accounts, the Authority shall have the right to inspect the records and accounts of the licensee to monitor compliance with licensing conditions. The Authority shall maintain the confidentiality of all data, information, and accounts it obtains.

Article 19

Owners and operators of nuclear electricity generation stations shall be required to obtain the approval of the Nuclear and Radiological Regulatory Authority before applying to the Authority for a license.

Article 20

A permit or license holder may not transfer the permit or license to a third party except after obtaining written approval from the Authority.

Article 21

The Authority may impose any of the sanctions set out in items (1), (3), and (4) of Article (23) if a licensee makes any modification in the ownership of its assets or control thereof in a manner that gives rise to monopolistic practices or impairs the rules of free competition.

Article 22

In the event of a dispute arising between electricity utility parties in connection with the operation and regularity of the utility, any of them may submit a request to the Authority to consider and resolve the dispute within sixty days from the date of submission. The lapse of this period without a decision shall be deemed a rejection thereof. The Executive Regulations shall govern the procedures for considering and resolving the dispute.

Article 23

In the event of a licensee’s breach of the licensing conditions, the Authority may impose any of the following sanctions:

1. Issue a written warning with a deadline for remedying the violation.
2. Remove the violation at the expense of the licensee.
3. Suspend the license for a specified period not exceeding one year, along with any other measures to ensure continuity of the activity and protection of consumer rights.
4. Cancel the license and take the necessary measures to protect consumer rights, including the management of the facility on behalf of and at the expense of the violating party.

In all cases, the licensee shall be obligated to refund amounts collected without entitlement as a result of violating the approved tariff or prices, together with a return at the rate announced by the Central Bank, in accordance with the rules and procedures determined by the Executive Regulations.

Chapter Three — Electricity Activities

Article 24

The electricity utility is a public utility and operates within the framework of the approved electricity strategy and policies.

Section One — Electricity Production

Article 25

The licensee for electricity production shall be responsible for: (1) implementing electricity production projects; (2) managing, operating, and maintaining electricity production stations; (3) selling the electricity produced; (4) selling ancillary services required for the safe and stable operation of the electricity transmission network; (5) carrying out studies, research, and development; and (6) performing any works or activities related to or complementary to its activity.

Section Two — Electricity Transmission and Network Operation

Article 26

The Egyptian Electricity Transmission Company is an Egyptian joint-stock company owned by the State, independent of any electricity company or electricity utility party. The provisions of the Joint-Stock Companies Law, the Capital Market Law, and the Securities Depository Law shall apply to it in matters not specifically addressed in this Law.

Subject to the approval of the Council of Ministers, certain public legal persons or companies wholly owned by the State may participate in the capital of the Company.

The Egyptian Electricity Transmission Company shall be exclusively responsible for electricity transmission and network operation. Its Extraordinary General Assembly shall amend its constitutive statutes to comply with this Law.

Article 27

The General Assembly of the Egyptian Electricity Transmission Company shall be chaired by the Competent Minister, with a minimum of seven and a maximum of fourteen members appointed by the Prime Minister upon the recommendation of the Competent Minister for a term of three years. Among the members shall be a representative of the Ministry of Finance and a representative of the Company’s employees nominated by the General Federation of Trade Unions. None of the members may be affiliated with any electricity utility party.

The Chairman and members of the Board of Directors and auditors of the Central Auditing Organisation shall attend General Assembly meetings without the right to vote.

Article 28

The Egyptian Electricity Transmission Company shall be managed by a Board of Directors constituted by the Company’s General Assembly for a term of three years, consisting of a Chairman and a minimum of eight and a maximum of fifteen members. Among the members shall be a representative of the Ministry of Finance and a representative of the Company’s employees nominated by the General Federation of Trade Unions.

Article 29

The Chairman and members of the Board of Directors and employees of the Egyptian Electricity Transmission Company are prohibited from working in any capacity for any electricity utility party or from serving on the Board of Directors of any such party.

Article 30

The Egyptian Electricity Transmission Company shall be obligated to allow third parties to use its networks without discrimination to supply electricity consumers with their needs, in accordance with transmission rules that include prices determined on the economic bases approved by the Authority.

Article 31

The Egyptian Electricity Transmission Company shall operate the electricity transmission system in accordance with economic and environmental standards that ensure equal opportunity and protect the interests of producers and consumers. For this purpose, it shall exclusively carry out the following tasks:

1. Operating the electricity transmission system to achieve efficiency, stability, and reliability.
2. Managing and maintaining the transmission network, and implementing transmission projects at extra-high and high voltages.
3. Transmitting electricity through its networks in exchange for a charge proposed by the Company on economic principles and approved by the Authority.
4. Making connection to the transmission network available in exchange for a charge proposed by the Company on economic principles and approved by the Authority.
5. Procuring balancing energy for the safe and stable operation of the network in a manner that ensures equal opportunity and non-discrimination.
6. Procuring the regulated market’s electricity needs by purchasing from licensed producers, and purchasing transmission, distribution, and sale services on behalf of non-eligible subscribers.
7. Receiving the difference between the two tariffs referred to in Article (41) of this Law and allocating it for the purpose specified in the Executive Regulations.
8. Providing electricity to eligible subscribers under temporary contracts for six months, renewable subject to the Authority’s approval.
9. Participating with the Ministry in studies for the expansion of production and transmission capacity.
10. Organising electricity purchase and sale procedures through the Market Operator.
11. Implementing electrical interconnection projects approved by the Ministry and exchanging electricity with other countries.
12. Organising the sale, purchase, and exchange of electrical energy on interconnection networks.
13. Carrying out studies, research, and development.
14. Making information and statistics available to electricity utility parties without discrimination.

The Company may implement its projects itself, in partnership with others, or entrust implementation to third parties. It may also carry out other works or activities related to or complementary to its activity.

The Egyptian Electricity Transmission Company shall exercise the powers referred to herein in accordance with the principles and rules determined by the Executive Regulations.

Article 32

The Egyptian Electricity Transmission Company shall draft and amend transmission rules in coordination with production and distribution companies and eligible and non-eligible subscribers. These rules shall only take effect after approval by the Authority and publication in the Official Gazette. The rules shall include in particular: (1) technical requirements and constraints for connection to or use of the transmission network; (2) confirmation that technical requirements ensure non-discrimination; (3) rules that encourage efficiency, reliability, and economics; (4) information and data required for operation and planning; (5) rules and bases for operation of the electricity transmission system; and (6) rules and bases for performance evaluation.

Article 33

The Egyptian Electricity Transmission Company shall draft and amend trading and settlement rules in coordination with production and distribution companies and eligible and non-eligible subscribers. These rules shall take effect after approval by the Authority and publication in the Official Gazette. The rules shall include in particular: (1) mechanisms, prices, and conditions for purchasing or selling electricity; (2) non-discrimination between all producers and all consumers; and (3) procedures that encourage efficiency and competition.

Article 34

The Egyptian Electricity Transmission Company shall procure the energy required for ancillary services on the basis of commercial principles announced to all electricity utility parties, while ensuring equal opportunity and non-discrimination.

Article 35

The Egyptian Electricity Transmission Company shall prepare an annual electricity supply security report covering consumption, monitoring the balance between production and consumption, and forecasting future electricity loads and additional production capacities required in the medium and long term. This report shall be presented to the Board of Directors of the Authority.

The Competent Minister shall present the findings of this report to the Council of Ministers. In the event the report reveals a production deficit, the Council of Ministers may approve appropriate measures including authorizing the Transmission Company to contract with investors to add production capacities and issue government guarantees.

Article 36

The Egyptian Electricity Transmission Company shall prepare an annual report on the measures it has taken to ensure non-discrimination and maintain the confidentiality of third-party information. This report shall be presented to the Board of Directors of the Authority.

Article 37

The Egyptian Electricity Transmission Company shall publish information relating to its activities that can be commercially beneficial to electricity utility parties without discrimination, in accordance with the procedures determined by the Executive Regulations.

Section Three — Electricity Distribution

Article 38

The licensee for electricity distribution shall be responsible for: (1) constructing and implementing distribution projects at medium and low voltages; (2) managing, operating, and maintaining distribution networks in licensed areas; (3) constructing, managing, operating, and maintaining production units in coordination with the Network Operator and selling the electricity produced under a license from the Authority; (4) selling electricity to non-eligible subscribers in exchange for a tariff proposed by the licensee and approved by the Authority; (5) proposing connection charges to the distribution network, taking effect after Authority approval; (6) preparing and implementing distribution network expansion plans approved by the Authority; (7) carrying out studies, research, and development; and (8) performing other works or activities related to or complementary to its activity after notifying the Authority.

The powers referred to herein shall be exercised in accordance with the principles and rules determined by the Executive Regulations.

Article 39

The licensee for electricity distribution shall be obligated to allow third parties to use its networks without discrimination to supply electricity consumers with their needs within the technical capabilities of such networks, in exchange for a usage charge approved by the Authority in accordance with the approved distribution rules.

Article 40

The purchase and sale of electricity may be carried out through an accredited distributor in accordance with the conditions and rules specified by the Authority in the license granted to it. The Authority may issue licenses to others to carry out the same activity within the same geographic scope.

Section Four — Electricity Subscribers

Article 41

Electricity distribution licensees and the Network Operator shall be obligated to supply non-eligible subscribers with electricity at various voltages within the licensed geographic scope and in accordance with contracts and tariffs approved by the Authority. If the Council of Ministers sets a tariff lower than the tariff approved by the Authority, the State shall be obligated to pay the difference to the licensees in accordance with the rules and procedures determined by the Executive Regulations.

Article 42

The Board of Directors of the Authority shall determine the conditions that an eligible subscriber must satisfy. Contracts between an eligible subscriber and an electricity supplier shall be made in accordance with contracts approved by the Authority and in accordance with the transmission rules and trading and settlement rules.

Article 43

Where a subscriber requests special electricity supply quality specifications exceeding the general standards approved by the Authority, a special supply contract approved by the Authority shall be concluded with the subscriber.

Article 44

Where a subscriber requests reserve capacity, contracting shall be made in accordance with contracts and prices approved by the Authority.

Chapter Four — Improving Energy Use Efficiency

Article 45

The Network Operator or the electricity distribution licensee shall be obligated to purchase or pay for the value of surplus electricity from combined generation units and electricity production units from recovered energy with a capacity of less than 50 megawatts, at the conditions and prices determined by the Authority.

Article 46

The Network Operator or the electricity distribution licensee shall be obligated to connect combined generation units and electricity production units from recovered energy to their networks. The costs of network expansion shall be borne by the Network Operator or licensee, and the costs of network connection shall be borne by the producer.

Article 47

The Network Operator or the electricity distribution licensee may enter into load reduction or shifting contracts with consumers or accredited distributors, while ensuring non-discrimination between them. The Executive Regulations shall determine the controls to be observed in concluding such contracts.

Article 48

A subscriber whose contracted capacity exceeds 500 kilowatts shall be required to appoint a person responsible for improving the efficiency of energy use and to maintain an energy register in the manner set out in the Executive Regulations.

Article 49

The Network Operator or the electricity distribution licensee shall be obligated to implement the annual plan proposed by it and approved by the Authority for the implementation of projects or programs directed at consumers in the following areas: (1) management of electricity demand; (2) improvement of electricity use efficiency; (3) promotion of the use of renewable energy; and (4) raising awareness of energy use efficiency.

The Authority shall annually verify what has been achieved from the plan when issuing the license continuation certificate.

Article 50

The entity designated by the Council of Ministers for improving energy use efficiency, in cooperation with the relevant authorities, shall develop policies aimed at: (1) expanding the application of energy efficiency standards and labels to electricity-consuming appliances and equipment; (2) replacing low-efficiency appliances and equipment in accordance with the Executive Regulations; and (3) improving energy use efficiency in industrial and commercial systems.

Article 51

Producers and importers of electricity-consuming appliances and equipment shall be obligated to affix energy efficiency labels to electrical appliances in accordance with the ministerial decisions issued in this regard and the provisions of the Executive Regulations.

Chapter Five — Electricity Utility Infrastructure

Article 52

For the purposes of this Law, electricity utility infrastructure shall mean: (1) electric power generation stations from their various sources and their ancillary facilities; (2) main transformer substations at extra-high and high voltages; (3) overhead lines and underground and submarine cables at extra-high voltages; (4) overhead lines and underground and submarine cables at high voltages; (5) overhead lines and underground and submarine cables at medium voltages; (6) overhead lines and underground and submarine cables at low voltages; (7) medium-voltage network distributors; (8) transformers and equipment for low-voltage distribution networks; (9) facilities belonging to production, transmission, and distribution companies; and (10) related laboratories and research centres.

Article 53

Without prejudice to the right to fair compensation and the owner’s right to retain possession of the property or dispose of it, the owner or occupier of a property shall be obligated to permit, if the property is a building, the installation above it, or if it is land, below it, of the operation and maintenance of permitted overhead networks or underground cables, provided that no suitable alternative exists.

If the property is a building, the installation, operation, or maintenance of such networks and cables may only take place outside the walls or facades, above ceilings or rooftops, in a manner that allows access from the outside without penetrating habitation areas, and without endangering third parties.

The owner or occupier may submit a written objection within fifteen days of notification by registered mail. The Authority shall rule on the objection within fifteen days of its submission. If the Authority rejects the objection, the networks or cables may not be installed except by a decision of the Competent Minister that includes a description of the works, a detailed statement of the property, a list of owners and rights-holders, and engineering drawings. The decision and its annexes shall be published in the Official Gazette and deposited with the competent Real Estate Registration Office, producing all legal effects of a contract creating a real right.

Article 54

The property owner shall notify the Authority of any intended changes or modifications to the property before commencing them, if such changes could affect any electricity utility infrastructure. The Authority shall respond within fifteen days; failure to respond shall be deemed approval. In the event the Authority rejects the changes and the owner insists on proceeding, the Authority may initiate expropriation procedures.

Article 55

Without prejudice to the right to fair compensation, property owners and rights-holders shall be required to trim or prune trees or remove obstacles that may cause damage to electricity utility infrastructure.

It is prohibited to erect buildings, raise the height of existing buildings, or plant timber trees within the following distances from the centre line of routes:

1. Twenty-five metres for extra-high voltage overhead lines.
2. Thirteen metres for high voltage overhead lines.
3. Five metres for medium voltage overhead lines.
4. Five metres for extra-high and high voltage cables.
5. Two metres for medium and low voltage cables.

In the event of non-compliance, the administrative authority shall remove the violation through administrative action at the violating party’s expense.

Article 56

Licensees shall be required to place warning signs at locations where electrical line conductors are suspended above the Nile or salt waterways, and at submarine cable locations, as determined by a decision of the Competent Minister. Vessels and watercraft are prohibited from passing under the cables without lowering their masts if they exceed the specified height, or from anchoring near submarine cable crossings without observing the warning signs.

Article 57

The construction or extension of gas lines, telecommunications cables, petroleum pipelines, or water and sewerage networks near extra-high, high, medium, and low voltage lines or cables — without observing the distances specified in Article (55), or as agreed with relevant authorities — is prohibited, with due regard to structural, health, and environmental safety rules.

Article 58

When implementing electricity utility infrastructure, no excavation, construction, demolition, paving, maintenance, or pipeline and cable laying works in public roads, squares, or pavements may be carried out except in accordance with a plan and timetable established by the administrative authority in coordination with other licensees, utilities, and relevant authorities.

Article 59

The head of the administrative authority, at the request of the licensee, may request the competent authorities to issue a decision to close roads for the shortest possible period for the purpose of constructing, modifying, or repairing any electricity utility infrastructure. Such authorities shall issue the decision.

Article 60

Owners of buildings, factories, or subdivided plots designated for construction shall be required to build rooms to be allocated for distribution transformers, distributors, or distribution panels required for medium-voltage networks, in accordance with rules determined by the licensee and approved by the Authority. Owners shall have the right to fair compensation where third parties benefit from such rooms.

Article 61

Owners of real property shall be obligated to comply with the Egyptian Code for Electrical Connections and Installations in Buildings. In the event of non-compliance, distribution licensees may not supply the building with electricity until the non-compliant installations are repaired.

Article 62

Compensation referred to in this Chapter shall be assessed by a committee formed in each governorate by a decision of the Governor, chaired by the President of the Local Council, with the membership of representatives of the ministries concerned with housing, agriculture, electricity, and finance, and a representative of the Egyptian General Survey Authority. The committee shall issue its decision within one month of the first session by majority vote; in the event of a tie, the Chairman’s vote shall be the casting vote. Either disputing party may challenge the compensation assessment before the competent court.

Chapter Six — Transitional Period and the Competitive Electricity Market

Article 63

As amended by Article 1 of Law No. 70 of 2021, published on 13 June 2021 in the Official Gazette, Issue 23 (bis), effective as of 14 June 2021.

The Egyptian Electricity Holding Company and its wholly owned production and distribution companies shall bring their affairs into conformity with the provisions of this Law within a period not exceeding ten years from the date of its entry into force, in a manner that qualifies them to operate in the competitive electricity market. During the transitional period, these companies shall be dealt with in accordance with the provisions of this Law in coordination with the Egyptian Electricity Holding Company.

Original text before amendment: The transitional period was eight years (not ten years). All other provisions were identical.

Article 64

Without prejudice to the tasks of the Egyptian Electricity Transmission Company set out in Article (31) of this Law, the Egyptian Electricity Holding Company shall participate jointly with the Egyptian Electricity Transmission Company during a transitional period not exceeding three years in carrying out the following: (1) preparing studies for the expansion of production and transmission capacity to meet subscribers’ needs; (2) studying and implementing electrical interconnection projects and the exchange of electrical energy with other countries; and (3) conducting research and testing of extra-high and high voltage electrical equipment.

Article 65

The Ministry, in coordination with the Authority and the relevant parties, shall prepare a study on the development of the electricity market to become a competitive market while improving performance efficiency, attracting investment, and opening the market to competition gradually in stages, while maintaining the efficiency of the electricity system.

The Authority shall prepare a report on the stages of opening the market to competition, the expected duration of each stage, the Authority’s monitoring and evaluation role, the required procedures, the investment costs per stage, and the criteria for transition between stages. This report shall be presented to the Board of Directors of the Authority for approval. The Competent Minister shall present the report and recommendations to the Council of Ministers for approval, and to determine and announce the date of commencement of the competitive market.

Article 66

During the transitional period specified in Article (64) of this Law, the State shall take the necessary measures to restructure the Egyptian Electricity Transmission Company in a manner that enables it to fulfil its tasks set out in Section Two of Chapter Three of this Law.

Chapter Seven — Penalties

Article 67

Without prejudice to any more severe penalty prescribed by any other law, the offences set out in the following articles shall be punishable by the penalties prescribed for each of them.

Article 68

Whoever demolishes or damages any equipment, apparatus, buildings, or facilities for the production, transmission, or distribution of electricity, or renders all or part thereof unfit for use in any manner, shall be punishable by imprisonment for a term not exceeding three years and a fine not exceeding EGP 500,000, or either of these two penalties. The penalty shall be increased to imprisonment if such acts result in loss of life or damage to property.

If the act occurs as a result of negligence or lack of caution, the penalty shall be imprisonment for a term not exceeding six months and a fine of not less than EGP 1,000 and not more than EGP 10,000, or either penalty.

In all cases, the court shall on its own motion order the convicted person to pay the value of what was demolished or damaged, or the costs of restoration, without prejudice to the right to appropriate compensation.

Article 69

Whoever, without obtaining a license from the Authority, engages in any electricity activity referred to in Article (13) of this Law shall be punishable by imprisonment for a term of not less than six months and not more than three years and a fine not exceeding EGP 1,000,000, or either penalty. The penalty shall be doubled in the event of recidivism.

Article 70

As amended by Article 1 of Law No. 192 of 2020, published on 5 September 2020 in the Official Gazette, Issue 36 bis (b), effective as of 6 September 2020.

Whoever, while performing their job duties in the field of electricity activities or by reason thereof, commits any of the following acts shall be punishable by imprisonment for a term of not less than six months and a fine of EGP 10,000–100,000, or either penalty:

1. Connecting electricity to any individuals or entities without legal basis, in violation of this Law and its implementing decisions, or who is aware of any such violation and fails to promptly notify the competent authority.
2. Intentionally refraining from providing any of the licensed services without excuse or legal basis.

In the event of recidivism, the penalty shall be imprisonment for not less than one year and a fine of EGP 20,000–200,000, or either penalty.

The court shall order the convicted person to repay double the value of the electricity consumed that was misappropriated in the case referred to in item (1). The criminal action shall be extinguished if reconciliation is reached in accordance with Articles (18 bis, 18 bis/a, 18 bis/b) of the Code of Criminal Procedure.

Original text before amendment: Maximum term was six months; maximum fine was EGP 50,000; no recidivism provision.

Article 71

As amended by Article 1 of Law No. 192 of 2020, published on 5 September 2020 in the Official Gazette, Issue 36 bis (b), effective as of 6 September 2020.

Whoever unlawfully appropriates electric current shall be punishable by imprisonment for a term of not less than six months and a fine of EGP 10,000–100,000, or either penalty.

In the event of recidivism, the penalty shall be imprisonment for not less than one year and a fine of EGP 20,000–200,000, or either penalty.

In all cases, the court shall order the convicted person to repay double the value of the electric current appropriated. The criminal action shall be extinguished if reconciliation is reached in accordance with Articles (18 bis, 18 bis/a, 18 bis/b) of the Code of Criminal Procedure.

Original text before amendment: Term was not less than six months and not more than two years; no recidivism provision.

Article 72

Whoever intentionally discloses, publishes, or broadcasts any information obtained by reason of their position about an establishment operating in the electricity field, if such disclosure results in unfair competition between establishments in this field, shall be punishable by imprisonment for a term of not less than three months and a fine not exceeding EGP 100,000, or either penalty.

Article 73

Any licensee that fails to comply with the health, safety, and environmental controls and standards set out in the license granted to it shall be punishable by a fine not exceeding EGP 500,000. The court shall additionally order the removal of the causes of the violation at the violating party’s expense.

Article 74

Any licensee that violates any condition of the license granted to it, or violates the technical quality controls or standard performance quality measurements for the various licensed services, shall be punishable by a fine not exceeding EGP 500,000.

Any person who violates the tariff or electricity service prices approved by the Authority shall be punishable by a fine equal to ten times the value of the excess amount obtained.

Article 75

Any person who violates the provisions of Article (48) of this Law or the decisions implementing it shall be punishable by a fine not exceeding EGP 50,000. The penalty shall be doubled in the event of recidivism.

Article 76

Any person who violates the provisions of Article (51) of this Law or the decisions implementing it shall be punishable by a fine of EGP 100–1,000. The court shall in all cases order the confiscation of the appliances and equipment subject to the violation.

Article 77

Any person who, without obtaining the approval of the Authority, transfers to a third party the license issued to them shall be punishable by a fine not exceeding three times the value of the annual license continuation certificate fee, in addition to the cancellation of the license.

Article 78

The person responsible for the actual management of a legal person shall be punishable by the same penalties prescribed for acts committed in violation of this Law if the offence was committed in the name of and on behalf of the legal person and the person’s knowledge thereof and intention to commit it are established. The legal person shall be jointly and severally liable for the payment of any financial penalties and compensation adjudicated.

Chapter Eight — Final Provisions

Article 79

By a decision of the Minister of Justice, the employees designated by the Competent Minister may be granted judicial officer status with respect to offences committed in violation of the provisions of this Law that are related to the duties of their positions.

Article 80

The Ministry, in coordination with the competent authorities, shall prepare an advance plan for the operation and provision of electricity requirements during natural and environmental disasters or during the declaration of general mobilization, and shall update such plan whenever necessary.

The Arabic official text is authoritative. This translation is prepared for reference purposes only.

© Consortio Law Firm 2025