Palestine Electricity Law Amendment: The New Legal Framework Under Decree-Law No. (22) of 2025
On 2 October 2025, Decree-Law No. 22 of 2025 was issued, amending key provisions of Decree-Law No. 13 of 2009 (the General Electricity Law). The amendment was published in the Official Gazette on 27 October 2025, the same date it entered into force.
Decree-Law No. 13 of 2009 provides the legal and regulatory framework for electricity generation, transmission, and distribution in Palestine. It defines the roles and responsibilities of sector participants and establishes the foundation for regulatory oversight.
Decree-Law No. 22 of 2025 specifically updates Article 27, clarifying the authority of electricity distribution companies to purchase electricity from local generation sources and consolidating the responsibility for importing electricity from foreign sources under the National Transmission Company.
Scope of Decree-Law No. 22 of 2025
Decree-Law No. 22 of 2025 applies to principal actors within the electricity sector, including:
- Electricity distribution companies
- The National Transmission Company
- Local authorities engaged in electricity distribution
The amendment specifically addresses:
- Agreements for the purchase of electricity from local and national generation companies
- The importation of electricity from foreign (non-local) sources
- Compliance obligations required to align operations with the amended framework
The scope of the Palestine Electricity Law amendment is therefore limited to contracting authority and procurement structure, rather than broader licensing, tariff, or regulatory mechanisms.
Palestine Electricity Law Amendment: Key Updates
Amendments to Article 27
The Decree-Law amends Paragraphs (5) and (7) of Article 27 of the original law.
Article 27 governs aspects of electricity procurement and contractual authority within the distribution and transmission segments of the sector.
Paragraph (5): Local Generation Agreements
As amended, Paragraph (5) authorizes electricity distribution companies to enter into agreements with local and national electricity generation companies for the purchase of electricity. The provision expressly includes electricity generated from both traditional and renewable sources. The amendment formally recognizes and affirms the authority of distribution companies to contract directly with domestic generators, without limiting the source of generation. The text does not distinguish between types of generation technologies beyond identifying traditional and renewable sources.
Paragraph (7): Import of Electricity from Foreign Sources
Paragraph (7), as amended, grants the National Transmission Company the exclusive right to enter into agreements for the import of electricity from foreign (non-local) sources.
Such agreements require:
- Approval from the Energy and Natural Resources Authority; and
- Ratification by the Council of Ministers.
This provision centralizes the authority to conclude foreign electricity import agreements under the National Transmission Company. It also subjects such agreements to both regulatory approval and executive ratification, thereby establishing a dual-layer oversight mechanism.
Implications for the Electricity Sector
For Distribution Companies
Distribution companies are expressly authorized to purchase electricity from local and national generation companies, including from renewable energy projects. This confirms their contracting authority within the domestic generation market.
For the National Transmission Company
The National Transmission Company holds exclusive authority to import electricity from foreign sources, subject to approval and ratification requirements. This consolidates import-related contracting under a single entity.
Conclusion
Under the new Palestine Electricity Law amendments, entities operating within the electricity sector, including distribution companies, generation companies, investors, and local authorities, should assess existing procurement arrangements and contractual structures to ensure compliance within the prescribed timeframe.
Kurdi & Co. advises on regulatory alignment, contractual structuring, and sector-specific compliance under Palestinian energy legislation. For further information or assistance in reviewing procurement frameworks in light of Decree-Law No. 22 of 2025, contact our team.
FAQs
Decree-Law No. 22 of 2025 amends Article 27 of the General Electricity Law (Decree-Law No. 13 of 2009). It clarifies the authority of electricity distribution companies to purchase electricity from local generation sources and grants the National Transmission Company exclusive authority to conclude agreements for electricity imports from foreign sources.
Decree-Law No. 22 of 2025 was issued on 2 October 2025 and entered into force on 27 October 2025, the date of its publication in the Official Gazette.
Yes. Under the amended Article 27(5), electricity distribution companies are expressly authorized to enter into agreements with local and national electricity generation companies for the purchase of electricity, including electricity generated from traditional and renewable sources.
Under the amended Article 27(7), the National Transmission Company holds the exclusive right to conclude agreements for the import of electricity from foreign (non-local) sources.
Foreign electricity import agreements concluded by the National Transmission Company require approval from the Energy and Natural Resources Authority and ratification by the Council of Ministers.
Yes. The amended Article 27(5) expressly includes electricity generated from renewable sources, confirming that distribution companies may enter into electricity purchase agreements with domestic renewable energy generators.
No. The amendment focuses on electricity procurement and contracting authority. It does not introduce broader changes to licensing, tariffs, or other regulatory mechanisms.
Electricity distribution companies, generation companies, investors, and local authorities should review their existing procurement arrangements and contractual structures to ensure alignment with the amended legal framework.
This Article was researched and written on April 15th, 2026 by Amer Kurdi.
