The Energy and Water Utilities Regulatory Authority Act, Cap 414 gives EWURA the legal mandate to issue renew and cancel licences of service providers in the regulated sectors. Existing licence holders and potential licence applicants may submit their applications to EWURA for a new licence or licence renewal. EWURA considers licence applications and decides whether or not to grant a licence or licence renewal by using fair and non-discriminatory procedures.

Cap 414 further makes it mandatory for EWURA to conduct public inquiry before exercising its powers to issue, renew or cancel a licence. It requires EWURA to give notice of the inquiry through publication in the Government Gazette and in widely circulated newspapers specifying among other things the purpose of the inquiry, the time within which submissions may be made and the form in which submission may be made. A written notice of inquiry is also sent to the service providers, the Consumer Consultative Council, the Minister and sector Ministers having responsibilities for regulated sectors.