VELMA LawVelma Law, Dar es Salaam Tanzanian Law Firm 310 310
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New Electricity (Market Re-Organisation and Promotion of Competition) Regulations 2016 were published on 21 October 2016.
In brief these include:
- Prescribed timeline for re-organisation of the market, starting with unbundling of generation from transmission and distribution by December 2017 (Regulation 4(2)).
- Generators may sell to DNO or eligible customers under PPAs agreed with customers (Regulation 5(3)(b)).
- Transmission must permit third party access subject to payment of wheeling charge (Regulation 6(3)(a)).
- Off-grid distribution shall have exclusive rights (Regulation 7(2)).
- Large (>10mw) projects, and all small (<10mw) solar and wind:
- shall use competitive procurement (Regulation 12(1)).
- may be procured by private DNO under competitive procedure approved by EWURA (Regulation 12(3)).
- Breach of this is offence with TZS 10m fine and/or 2 years imprisonment (Regulation 12(4)).
- Establishment of Electricity Infrastructure Procurement Committee (Regulation 13).
- Anti competitive behaviour is prohibited (Regulation 24).
- Tanesco shall set aside funds each year for feasibility studies (Regulation 25).