Mozambican New Electricity Law

The Mozambican Assembly of the Republic approved a new electricity law (Law 12/2022), which will be in force as from October 10.

The main purpose of this law is to adapt the existent legislation (namely Law 21/97, which is revoked) to the actual Mozambican reality and, in particular, to facilitate the development of renewable energy projects and the secondary market.

Some of the key aspects of the law are:

1. It gives the Council of Ministers the power to approve any electricity projects with 100MW or more;
2. It nominates ARENE ( the Energy Regulatory Authority) to supervise, regulate and oversee the electric energy activities;
3. It creates a new entity ( “Gestor do Sistema Eléctrico Nacional”), which will be responsible for the management of all the national electric grid; the by-laws and specific competences of the new entity will be approved by the Council of Ministers;
4. It regulates the conditions, criteria and procedures for the assignment of new concessions;
5. It exempts from concession all private projects which are for individual consumption only and will not supply third parties;
6. It defines the conditions and criteria for the termination of the concessions, setting of consumption tariffs and electricity prices;
7. It defines the conditions under which the transfer of existing projects can take place.

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Read the original publication at MC&A Advogados.