In May 2009, the new electricity law was issued to fulfil the following objectives:

Regulate and develop the Electricity Sector in Palestine.

Encourage local and foreign investment in the Electricity Sector in Palestine so as to achieve an adequate and reliable supply of electric power to the consumers at the lowest possible cost.

The law is organized in eight chapters that:

1)Establish the mandate, power, governance, objectives and responsibilities of the Palestinian Energy and Natural Resources Authority (PENRA) and the Electricity Regulatory Council (PERC).

2)Establish the National Transmission Company and sets it governance, objectives, and operational guidelines.

3)Set the sector structure (PENRA, PERC, generation companies, the National Transmission Company (PETL), distribution companies).

4)Provide guidelines for setting tariffs and granting licenses and concessions.

5)Introduce a penalty structure for violation of the law by individuals and corporations.

6)Take necessary measures to protect the environment, to enhance safety and to consider the interest of consumers and producers.

7)PENRA is responsible for setting out the sector development policies and PERC is responsible for the monitoring and regulating the distribution companies.

8)PENRA is responsible for providing the Palestinian citizens with reliable electricity supply at an affordable price that allows the efficient long-term development of the sector and the economy.