africa development Economy Energy Government Mozambique

Mozambique plans to liberalise production, transmission, distribution and sale of electricity

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Mozambique plans to liberalise the production, transmission, distribution and sale of electricity starting in 2019, a representative of the Ministry of Mineral Resources and Energy recently said.

Telma Nkutumula, a lawyer and a representative of the ministry in a debate held in the city of Chimoio, Manica province, said the liberalisation will involve the repeal of current legislation, which recognises the companies Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa as the holders of exclusive rights to these activities.

The new measure also opens up space for private investment in the import and export of electricity, electricity consumption and energy services.

Mozambican daily newspaper Notícias reported that the publication of the preliminary draft review of the current electricity law is underway across the country.

Nkutumula said that “despite the current relevance of Law No. 21/97, of 1 October, in its fundamental aspects teh conclusion was that it was urgent to carry out the review in order to bring it into line with the current context.

According to Nkutumula, the initiative aims to promote the efficiency of the electricity sector, in line with the changes and dynamics of the internal, regional and international market, to promote and encourage greater participation of the private sector, including participation in large electricity production and transmission projects, adjusting the law to the new structure of the electricity sector, defining the role of EDM in rural electrification as well as independent energy producers.

Source: Macauhub

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