Presidential Decree no. 76/21, of 25 March, enacted the new Regulation on Production, Transportation, Distribution and Commercialization of Electric Power (the "Regulation") which sets forth the legal framework applicable to the production, transportation, distribution and commercialization of electric power and establishes the Bases for the Concession of Production, Transportation and Distribution of Energy.
Scope: The Regulation applies to the production (independent or integrated), transport, distribution and commercialization of electricity in Angola.
In accordance with the Regulation, production of electrical power can be carried out either under a public service concession or on a free competition basis, depending if it is totally or partially intended to supply the Public Electricity Service ("PES").
Framework: The Regulation establishes 3 (three) regimes for the electric power production:
(i) PES integrated production under the general regime - Production activity under a public service concession that is not covered by a special legal regime.
(ii) PES integrated production under the special regime - Production activity under a special legal regime as set out in the Regulation:
a) Renewable Integrated Production - applicable to energy production based on a renewable energy source, with power greater than 10 MW; and
b) Integrated Production in Isolated Systems - applicable to production of up to 5 MW in an autonomous supply system, without connection to a neighbouring grid.
(iii) Production outside the SEP - Independent production, intended partially for public supply, and self-production for exclusive use of a final customer connected by direct extension line.
Granting: As a rule, SEP integrated production is subject to the granting of a concession for this purpose, by means of a tender procedure or through direct award, depending on the applicable regime. The duration of the respective concession contract cannot exceed 50 years.
Integrated Production in Isolated Systems depends only on a license for this purpose, which includes a distribution and commercialization license. Production outside the SEP only requires licensing when installed capacity is over 100 kVa.
Remuneration: Remuneration for SEP-integrated production activities is set forth in the Power Purchase Agreement, in accordance with the Regulation, and the respective amount varies depending on the relevant production regime.
Electricity transmission is carried out on an exclusivity basis, by means of a concession granted to operate the National Transmission Grid, thus covering the entire national territory.
The Regulation establishes the continuity of the current Concessionaire, the Rede Nacional de Transporte de Eletricidade, E.P.
Electricity distribution is carried out under a Concession regime or under a license, when covering isolated electrical systems. A concession may cover several distribution areas and can include distribution licenses in isolated systems.
Under the Regulation, current concessions for distribution of electricity shall remain in force. However, the Regulation also allows for the creation of new geographical distribution areas, and the relevant exploration of such new areas may be granted through a concession.
Electricity supply to customers is carried out under a license granted by the Minister of Energy and Water. The supply license establishes the geographic scope of activity and the type of eligible customers, by class, connection voltage or metering type.
The granting of the license abides to a specific regime and process established in the Regulation and has a duration of no more than 20 (twenty) years and no less than 5 (five) years.
The Regulation entered into force on the date of its publication, March 25, 2021, thus revoking the Regulations for Electricity Generation and the Regulation for Electricity Distribution, approved respectively by Decree 47/01, of July 20, and Decree 45/01, of July 13.
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