Energy Regulator - ARENE
Creating and maintaining an effective enabling environment that promotes new investment into the power sector in Mozambique requires a strong and transparent regulatory framework that facilitates both private and public investment. Central to the regulatory framework is an independent Electricity Regulator. An independent sector regulator can strengthen the performance of the energy sector in Mozambique and establish a policy and institutional foundation that would preserve the options for later sector reforms. A sector regulator with clear mandates would also be a source of sector stability that will serve well the requirements necessary to attract investor commitment of capital over time. A strong regulator can help ensure service expansion, service quality, and reliability of electricity.
Earlier this year the Mozambican parliament approved a bill establishing the Energy Regulatory Authority (ARENE) to replace the National Electricity Council (CNELEC) which had served as an advisory board only. The USAID SPEED Project provided recommendations that were incorporated into the Law that helped improve the law. ARENE will approve electricity tariffs as well as propose new policies and legislation on energy matters. It is expected to promote competition in energy services. As a new regulatory institution, ARENE has considerable potential but would benefit from assistance in helping it to establish itself and train its staff in their new role. USAID SPEED will provide technical assistance to ARENE to meet its mandate and create a strong energy sector in Mozambique.