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The Authority for Electricity Regulation is responsible for regulating the electricity sector and some aspects of the water sector. It was established by Article (19) of The Law for the Regulation and Privatisation of the Electricity and Related Water Sector promulgated by Royal Decree 78/2004 on 1 August 2004 and Amended by Royal Decree 59/2009 and 47/2013 (”'the Sector Law"). The Authority is a financially and administratively independent organisation. Thus, the budget is independently financed from the Government, and reporting is directly to the Council of Ministers.