One of the most important reforms that the Republic of North Macedonia has introduced in the energy sector was the establishment of the Energy Regulatory Commission. The Energy Regulatory Commission of the Republic of North Macedonia was set up in 2002 pursuant to the Law amending the Law on Energy promulgated in the Official Gazette of the Republic of Macedonia No. 94/02. 

The Energy Regulatory Commission commenced its operation on 23 July 2003 when the Parliament of the Republic of North Macedonia adopted a Decision nominating the President and the members of the Commission. In line with the reforms in the energy sector, another Law amending the Law on Energy was adopted the same year, and promulgated in the Official Gazette of the Republic of Macedonia No. 38/03 and 40/05, which strengthened the position of the Energy Regulatory Commission in the energy sector. With the adoption of these laws, the Republic of North Macedonia fully met the requirements deriving from the Directive No. 53/2003 of the Parliament and of the Council of the European Union of 26 July 2003 concerning common rules for internal market in electricity, for the establishment of an independent regulatory body that shall take care for: 

• safe, secure and quality supply to the energy consumers;
• nature and environment protection;
• consumer protection;
• protection and improvement of the position of those employed in the energy sector; and
• introduction and protection of a competitive energy market on the principles of objectivity, transparency and non-discrimination.