Electricity Re-Organisation and Competition Regulations 2016

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).

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