Mozambique’s new energy regulator authority approved: ARENE

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Mozambique’s new energy regulator authority approved: ARENE

7:36 CAT | 08 May 2017

The Mozambican parliament, the Assembly of the Republic, on Friday unanimously passed the first reading of a government bill setting up the Energy Regulatory Authority (ARENE).

The new authority replaces the National Electricity Council (CNELEC), and has considerably wider powers.

In particular, ARENE will approve electricity prices and tariffs. It will also propose new policies and legislation in energy matters, and promote “free competition” in energy services. This will involve taking measures against anti-competitive practices, and against abuses of dominant position in the sector.

Introducing the bill, the Minister of Mineral Resources and Energy, Leticia Klemens, said “establishing tariffs and prices is the essence of economic regulation. It is the backbone of the regulatory function, and safeguards the consumers, particularly the economically vulnerable clients”.

ARENE will be run by a Board of Directors of between three and five members. The Council of Ministers (Cabinet) will appoint the chairperson of the board, while the Minister of Mineral Resources and Energy will appoint the other members. The bill guarantees the independence of the members of the Board, who may not be removed before the expiry of their four year term of office.

The bill was not at all controversial and was passed by consensus. It will now be amended in committee before its second and final reading, probably next week.

Source: AIM