Regulation of electricity utilities – sales of power

Approval to sell power

What authorisations are required for the sale of power to customers and which authorities grant such approvals?

Sale of electricity under the PES is done by the DSO (or other smaller distribution concessionaires that are tied to the PES) pursuant to the competences legally attributed to it.

Otherwise, supply of power to non-tied customers is subject to a licence granted by the government.

Power sales tariffs

Is there any tariff or other regulation regarding power sales?

The price of electricity to the end consumer (both domestic and industrial) under the PES is regulated pursuant to the Tariff Regulation.

Power sales tariffs correspond, in general, to the aggregate of the allowed revenues of the TSO, the allowed revenues of the distribution operators and the costs of acquisition of power by the TSO, acting in its capacity as ‘offtaker’ of electricity under the PES, to the generators.

Power sales tariffs are corrected by:

  • a compensation fund, managed by the offtaker (TSO), which has the purpose of ensuring uniformity of sales tariffs across the country (and respective distribution networks);
  • promotional tariffs for certain categories of clients;
  • extraordinary adjustments proposed by the TSO following changes in costs arising out of taxation; and
  • costs with the functioning of IRSEA, which accrue to the tariffs.
Rates for wholesale of power

Who determines the rates for sales of wholesale power and what standard does that entity apply?

There are no organised markets for the wholesale of electricity. The TSO, acting as offtaker, purchases electricity from generators under PPAs entered into with the latter.

For the electricity acquired under the above-mentioned PPAs to become eligible as a cost reflected in the tariff system, such agreements must comply with the terms of the Tariff Regulation and further be the result of public procurement procedures or be agreements that pre-exist the entry into force of the regulation.

Public service obligations

To what extent are electricity utilities that sell power subject to public service obligations?

Suppliers of power in Angola (ie, the DSO and other distribution concessionaires) are subject to public service obligations, and thus may not impede access to the network or discriminate between end users.