Energy, being an engine of development, is important that supplies all of the economic sectors. To be more benefited from the energy sector, it should be regulated in affordable and environmentally friendly manner. For this to happen, the Ethiopian government established the former Ethiopian Electricity Agency by Proclamation of No 86/96. Since its establishment the agency has undertook a number of fruitful activities. Although, the agency did so many works related to its mandates, it was not mandated to undertake energy efficiency regulatory activities. This gap made the country to loose huge amount of energy because of lack of awareness creation activities in efficiency in the energy. Understanding the country’s demand of Energy resource usage, the Ethiopian government recognized the importance and urgency of Energy Efficiency and Conservation regulation. As a result, the government has upgraded the Ethiopian Electric Agen cy (EEA) to the Ethiopian Energy Authority (EEA) by the new Proclamation 810/2013 and Counsel of Ministers Regulation 308/2014. Following the new proclamation, the Authority is authorized to fully undertake the regulatory activities of energy sector.