Tanzania Electricity Regulatory Information Booklet

 

1. INTRODUCTION

The Energy and Water Utilities Regulatory Authority (EWURA), has broad objectives, including protecting stakeholders’ interests and ensuring service providers’ fi nancial viability is sustained. In achieving these objectives, EWURA, among other things, issues licenses, formulates and enforces quality codes and standards, reviews and determines rates and charges, approves Power Purchase
Agreements, ensures security of supply, energy efficiency, and promotes effective competition and economic efficiency.

EWURA is mandated to carry out both technical and economic regulation of the electricity sub-sector. This mandate is derived from EWURA Act, Cap. 414 and the Electricity Act, Cap.131. Promotion of least cost and security of supply is among the functions of EWURA stipulated in Section 6 of the Electricity Act, Cap.131. Section 5 of the Electricity Act states the powers of EWURA regarding regulation of electricity sub-sector among which is to award licences to entities undertaking or seeking to undertake a licensed activity, approve and enforce tariffs and fees charged by licensees, approve licensees’ terms and conditions of electricity supply and approve initiation of procurement of new electricity supply installation. Section 8 of Cap. 131 states activities that require to be licenced, Section 23 of Cap. 131 states EWURA’s mandates on tariff settings, while Section 25 of Cap. 131 states the mandate given to EWURA when it comes to approval of power purchase agreements.

In implementing its functions, EWURA prepared this booklet to provide handy information to investors in the sub-sector that will enable them to spend less time in acquiring the necessary information required for them to fulfi l the legal and regulatory requirement for their projects.

This Booklet summarises the necessary procedures to be followed by power projects investors to enable them obtain the necessary approvals required from EWURA. The booklet covers issues of procedures for initiation of procurement of power projects, licencing of electricity activities and electrical installations personnel, exemptions from licencing requirement, approvals of Power Purchase Agreements (PPAs), tariffs and charges.

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