Somalia Electricity Act 2023.

The Somalia Electricity Act 2023 establishes a comprehensive legislative framework governing the generation, transmission, distribution and supply of electricity within Somalia, with the overarching objective of transforming a fragmented and largely unregulated sector into a coordinated, transparent and efficient system. The Act is intended to enhance access to electricity, improve service reliability and affordability, and support national economic development by creating a stable legal environment for investment and sector growth. It responds to longstanding structural challenges, including limited electrification rates, high costs, and the predominance of privately operated mini‑grid systems lacking unified regulatory oversight. The Act provides for the establishment of a central regulatory authority, the National Electricity Authority, mandated to supervise and regulate the electricity sector. This authority is entrusted with licensing electricity service providers, setting and approving tariffs, administering subsidies and ensuring compliance with applicable standards. In this capacity, it is responsible for regulating sector activities across the entire electricity value chain, including generation, transmission, distribution and supply, and for promoting fair competition and consumer protection within the market. The Act further introduces a licensing framework designed to formalise previously unregulated service providers and to ensure that operators meet defined technical, financial and safety requirements. The legislation also establishes regulatory principles concerning service quality, tariff setting and environmental protection, aimed at ensuring that electricity supply is reliable, cost‑effective and consistent with sustainability objectives. It promotes the development and integration of renewable energy sources and encourages private sector participation, including foreign investment, through the creation of a predictable and transparent regulatory environment. In addition, the Act предусматриes measures to support rural electrification and to expand access to electricity in underserved areas, reflecting a policy objective of equitable service provision across urban and rural populations.