Definition
The Energy Act (1990) is the central Norwegian law regulating the production, transmission, and trading of electrical power. The Act grants OED (the Ministry of Petroleum and Energy) and NVENorway's Directorate of Water Resources and Energy - regulates the electricity and water resources sectors. the authority to: issue licences for power production and grid installations, set tariffs for grid rentalPayment for using the electricity grid - covers transport from producer to consumer and is regulated by NVE., regulate the power market, and establish the framework for the supply obligation. The Energy Act establishes the fundamental distinction between grid operations (regulated monopoly) and power trading (free competition) - which is the very architecture underpinning the Norwegian power market. Amendments to the Energy Act can fundamentally alter the operating conditions for market participants: new requirements relating to smart grids, flexibilityAbility to change power consumption or production in response to price signals or system operator needs., data formats, or market designRules and framework that govern the functioning of the electricity market - covers pricing, settlement and competition. all have their basis in the Energy Act. For technology suppliers, the Energy Act is background legislation: it explains why ElhubNational hub for metering data and market processes in the Norwegian electricity market. exists, why EdielNordic profile of the EDI EDIFACT standard - used for electronic message exchange in the Nordic power market via Elhub. is mandatory, and why grid companies cannot compete on power prices.