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Energy Law in Malta

Energy Law in Malta

Malta has recently amended the Energy Law after a cooperation agreement with China was signed. The new law on energy (Act XXXIV of 2014) is made up of several parts covering the distribution of various products. The Malta Energy Law is divided into regulations covering:

  • –          crude oil and petroleum products;
  • –          electricity and electrical accessories;
  • –          kerosene control;
  • –          natural gas distribution;
  • –          the use of biofuels.

The authorities responsible for the organization of the electricity industry and licensing of companies providing electricity products are the Malta Resources Authority, several ministries and a state-owned company called Enemalta Corporation.

Our lawyers in Malta can provide you with full information on the new Energy Law.

Electricity licenses in Malta

The Maltese Energy Law specifies that any company wanting to supply energy services is subject to several licensing criteria. Depending in the services offered, the Malta Resources Authority (MRA) can issue licenses for the following activities:

  • –          generating electricity;
  • –          supplying electricity;
  • –          distributing electricity.

The Maltese Government also allowed foreign companies to build power plants and other electricity facilities in the country provided that they apply for a license with the MRA.

The Maltese Electricity Law also contains other regulations, among which the Electricity Supply Regulations, the Grid Requirements and the regulations for promoting renewable energy sources.

Distributing energy in Malta

The new Energy Law in Malta stipulates that operators seeking to distribute energy in the country can do so by first obtaining an authorization from the Authority for Transport in order to install a distribution system by the side of the road.

The law also specifies that an energy distribution operator may establish the charges for the supply of electricity and any adjacent services, provided that they have first obtained approval from the MRA. The operators is also allowed to engage in contracts for the procurement of supplies, in accordance with the Public Procurement of Entities.

Considering the new law was enabled in order to encourage foreign investments, if you need assistance in setting a company in the energy industry, do not hesitate to contact our law firm in Malta.