Energy Law No. 81/2018.

This Law consisting of 31 articles aims at (i) upgrading and improving the power supply service by providing adequate public access to electricity throughout the country; (ii) encouraging the development of standards and requirements for electrical equipment, electrical engineering, methods, and procedures for generating electricity, distribution, and use of electricity; (iii) regulating and monitoring the electricity market and improving the electricity service that protects the rights of consumers (purchase electricity from any licensee, at a reasonable competitive price based on fair trade terms); (iv) promoting the creation of various energy sources, including (a) all different types of fossil-based energy; (b) renewable energy; (c) low-cost energy sources based on hybridized or hybrid mini grids; (d) cheap energy imports; (v) promoting environmental protection, Code of Conduct and various standards of use or trade in electricity; (vi) guiding the relationship between the Ministry of Energy and Minerals and the Energy Regulatory Commission and other service providers, consumers, and other stakeholders in the energy sector. The Law prohibits the supply of electricity to private companies.
Chapter II regards the powers of the Ministry of Energy and Minerals, the highest authority in the energy sector that formulates the Government's Policy on Energy including Electricity, and works together with the Somaliland Energy Regulatory Commission, which is an independent public body appointed to regulate energy and electricity with the main responsibility of regulating matters relating to the Energy Zone of the country. The powers of the Commission are dealt with in Chapter III, in particular in article 10 entitled Powers and Duties of the Commission. In Chapter IV focused on the Licensing system is established that no person can generate, reproduce, transmit, distribute, sell or trade electricity without a permit, and the application for a license shall be directed to the Commission according to the indicated rules and procedures. Under Chapter V it is permitted the use of public properties for the purpose of building a public service, and the owner will be compensated for the value of the land at that moment on the market paid by the applicant (interventions that may affect the environmental aspect are regulated by the Environmental Protection Act 04/98). Financial matters are the objects of Chapters VI (Financial Investment) and VII (Trust Fund in Somaliland), while health and safety requirements are provided in Chapter VIII where it is established that the electrical appliances have to be constructed and installed in a way that (a) is not harming for the living, health and property; (b) is not excessively noisy; (c) must comply with reasonable safety standards; (d) must be able to withstand rain, wind, thunderstorms, or other natural disasters that could cause harm to health and safety.