The Energy Networks Association (ENA) has praised MPs and peers for voting through the legislation, which will soon receive Royal Assent.
The Bill, which was put forward by Conservative MP Richard Ottaway, imposes a strict licensing regime on the metal recycling industry. It requires scrap dealers to keep stronger records, regulates itinerant traders and gives police powers to close unlicensed premises.
It is hoped the measures will deter metal thieves by making it more difficult to cash in the stolen items.
ENA chief executive David Smith said: “This is a great result for those affected industries and organisations that have been campaigning for a change for many years.
“Replacing the outdated laws will deal a firm blow to the criminals who have plagued our national infrastructure, memorials and heritage.”