The Electricity Act

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CHAPTER 131
THE ELECTRICITY ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Application.
3. Interpretation.
part ii
POWERS OF THE MINISTER AND THE AUTHORITY
4. Powers of Minister.
5. Commissioner responsible for electricity affairs.
6. Powers of Authority.
7. Functions of Authority.
8. Reports.
part iii
OPERATING LICENCE
(a) Provisional Licences and Licences
9. Duty to obtain licence.
10. Contents and consideration of licence.
11. Suspension, modification and revocation of licence.
12. Transfer of licence.
13. Provisional licence.
(b) Rights and Obligations of Licensees
14. Rights of licensee.
15. General obligations of licensee.
16. Obligation to decommission.
17. Information and reporting obligations.
18. Generation licence.
19. Transmission licence.
20. Exemptions.

licensee.
16. Obligation to decommission.
17. Information and reporting obligations.
18. Generation licence.
19. Transmission licence.
20. Exemptions.

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
21. Duration of licence.
22. System and market operations.
23. Distribution licence.
24. Cross-border licences of electricity.
part iv
TARRIFS AND CHARGES
25. Tariffs regulation.
26. Tariff applications and tariff changes.
27. Power purchase agreements.
Customer Rights and Public Protection
28. Service obligations.
29. Licensee’s rules.
30. Disconnection of electricity service.
31. Service standards and customer complaints.
part v
MONITORING, INSPECTION, INVESTIGATIONS AND COMPLIANCE
32. Monitoring.
33. Inspection.
34. Investigations and inquiries.
35. Compliance.
part vi
ACCESS TO LAND FOR INSTALLATIONS
36. Compulsory access.
37. Wayleaves.
38. Compulsory acquisition of land.
part vii
RURAL ELECTRIFICATION
39. Rural Electrification Plan and Strategies.
40. Monitoring and evaluation.
41. Implementation measures.
part viii
REORGANISATION OF THE ELECTRICITY MARKET
42. Restructuring of electricity market.
43. Reorganisation of electricity market.

tation measures.
part viii
REORGANISATION OF THE ELECTRICITY MARKET
42. Restructuring of electricity market.
43. Reorganisation of electricity market.

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
part ix
DISPUTES SETTLEMENT
44. Dispute settlement.
45. Appeal to Fair Competition Tribunal.
part x
MISCELLANEOUS PROVISIONS
46. Regulations.
47. Rules.
48. Publication of regulations and rules.
49. Indemnity.
50. Repeal and savings.
51. General penalty.
52. Transitional provisions.

lations.
47. Rules.
48. Publication of regulations and rules.
49. Indemnity.
50. Repeal and savings.
51. General penalty.
52. Transitional provisions.

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CHAPTER 131
THE ELECTRICITY ACT
An Act to provide for the facilitation and regulation of generation,
transmission, transformation, distribution, supply and use of electric
energy, to provide for cross-border trade in electricity and the planning
and regulation of rural electrification and to provide for related matters. [1st April 2009]
[GN. No. 82 of 2009]
Acts Nos. 10 of 2008
17 of 2010
23 of 2015
3 of 2020
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Electricity Act. 2. This Act shall apply in relation to electricity supply industry
in Mainland Tanzania. 3.

ROVISIONS
1. This Act may be cited as the Electricity Act. 2. This Act shall apply in relation to electricity supply industry
in Mainland Tanzania. 3.

In this Act, unless the context requires otherwise-
“annual report” means a report issued by the Authority
annually in terms of section 49 of the Energy and Water
Utilities Regulatory Authority Act;
“authorised area” means an area in which a distribution
licensee has a non-exclusive right to sell or provide
services to consumers;
“Authority” means the Energy and Water Utilities Regulatory
Authority established under Energy and Water Utilities
Regulatory Authority Act;
“Commissioner” means a Commissioner for electricity
affairs appointed under section 5 of the Act;
“cross-border electricity trade” means trading in electricity
between two states sharing a common border through
Short title
Application
Interpretation
Act No. 3 of 2020 s. 12
Cap. 414
Cap. 414
Cap. 414

ectricity
between two states sharing a common border through
Short title
Application
Interpretation
Act No. 3 of 2020 s. 12
Cap. 414
Cap. 414
Cap. 414

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THE ELECTRICITY ACT [CAP. 131 R.E.

Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.537
THE ELECTRICITY ACT [CAP. 131 R.E.

2023]
an inter-connector power line or between more than two
states not sharing common border, but linked through a
power pool which involves export or import of electric
energy between the states;
“Customer Service Charter” means a document which sets
out terms and conditions of provision of service, rights
and duties of a licensee and customers;
“customer” means a person who purchases or receives
electricity for own use or sale;
“decommissioning” means the dismantle, removal or
disposal of power plant facilities, structure, generating
units, fuel processing units and transmission equipment
and environment remediation;
“Distribution Code” means the technical and procedural
rules and standards issued by the Authority governing
matters pertaining to the distribution of electricity;
“distribution licensee” means a licensee authorised to
undertake distribution activities;
“distribution” means the transportation of electric energy and
power by means of medium to low voltage lines, facilities
and associated meters, including the construction,
operation, management and maintenance of such lines,
facilities and meters;
“economic regulation” means an intervention to modify, as
and when deemed appropriate, the economic behaviour
of a regulated supplier aimed at narrowing choices in
certain areas including prices, rate of return and methods
of procurement;
“electricity supply industry” means electricity generation,
electric power transmission, electricity distribution and
electricity retailing;
“electricity supply installation” means a facility used to
generate, transmit, distribute or supply electricity;
“eligible customer” means any person who is authorised
by the Authority to enter into contract for the supply of
electricity directly with any person licensed to generate
electricity;

son who is authorised
by the Authority to enter into contract for the supply of
electricity directly with any person licensed to generate
electricity;

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THE ELECTRICITY ACT [CAP. 131 R.E.

Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.538
THE ELECTRICITY ACT [CAP. 131 R.E.

2023]
“EWURA Act” means the Energy and Water Utilities
Regulatory Authority Act;
“Fair Competition Commission” means the Commission
established by the Fair Competition Act;
“franchise area” means the area within which a distribution
licensee has the exclusive right to provide service to any
customer who is not an eligible customer in that area;
“generation licensee” means a licensee authorised to
undertake electricity generation activities;
“generation” means the production of electric energy and
power from any primary source of energy;
“Grid Code” means the technical and procedural rules and
standards issued by the Authority on transmission and
system operation;
“high voltage” means ac or dc voltage of the amount equal
or above to sixty six thousand plus or minus ten percent;
“licence” means a licence issued by the Authority pursuant
to the EWURA Act, relating to the electricity supply
industry;
“licensed activity” means the activities specified under
section 9;
“licensee” means a person authorised by the Authority to
undertake a licensed activity;
“low voltage” means ac or dc voltage less or equal to four
hundred plus or minus five percent;
“market operator” means a person licensed to administer
wholesale trade in electricity;
“market rules” means the technical and procedural rules
issued by the Authority on the administration of wholesale
trade in electricity;
“medium voltage” means ac or dc voltage between or above
four hundred voltage plus or minus ten percent and less
or equal to thirty three thousand voltage plus or minus
ten percent;
“Minister” means the Minister responsible for electricity
matters;
Cap.

and less
or equal to thirty three thousand voltage plus or minus
ten percent;
“Minister” means the Minister responsible for electricity
matters;
Cap.

414
Cap. 285

414
Cap. 285

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THE ELECTRICITY ACT [CAP. 131 R.E.

Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.539
THE ELECTRICITY ACT [CAP. 131 R.E.

2023]
“off-grid” means an electricity supply system that is not
electrically connected, directly or indirectly to any part
of the transmission system;
“Performance Agreement” means an agreement between a
licensee and the Authority which establishes incentives
and penalties related to the measurable performance
of the licensee, and which is designed to improve the
efficiency and effectiveness of the licensee;
“Power System Expansion Plan” means a planning document
prepared by the Minister and updated on an annual basis
by the system operator, dealing with indicative medium
and long-term plans for the expansion of the transmission
system to cater for expected generation and demand
developments;
“priority customers” means customers of a distribution
licensee who, due to the essential nature of their activities,
are prioritised by the Authority to receive supply when
the licensee suspends electricity supply services;
“related business” means any business or company which
directly or indirectly, in whole or in part, is owned by
the licensee, or is owned by a company which owns or is
owned by the licensee;
“Rural Electrification Strategy and Plan” means the document
prepared by the Minister dealing with strategies and
plans to promote access to electricity in rural areas;
“Rural Energy Agency” means the agency established under
Part IV of the Rural Energy Act;
“Rural Energy Fund” means the fund established under Part
V of the Rural Energy Act;
“service” means production and supply of electricity;
“Standardised Small Power Purchase Agreement” means
the agreement between a utility entity and a developer
entered for purposes of selling power to the grid not
exceeding 10MW but not less than100kW;
“Standardised Small Power Purchase Tariff ” means the
tariff agreed on in the Standardised Power Purchase
Agreement;
Cap.

10MW but not less than100kW;
“Standardised Small Power Purchase Tariff ” means the
tariff agreed on in the Standardised Power Purchase
Agreement;
Cap.

321
Cap. 321

321
Cap. 321

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
“supply” means the sale of electricity by licensee to customers;
“system operator” means a person licensed to provide system
operation services;
“transmission” means the transportation of electrical energy
and power by means of high-voltage lines, facilities and
associated meters, including the construction, operation,
management and maintenance of such lines, facilities and
meters; and
“transmission licensee” means a licensee authorised to
undertake transmission activities.

nt and maintenance of such lines, facilities and
meters; and
“transmission licensee” means a licensee authorised to
undertake transmission activities.

PART II
POWERS OF THE MINISTER AND
THE AUTHORITY
4.–(1) The Minister shall provide supervisory and oversight in
the electricity supply industry and shall in that respect-
(a) develop and review Government policies in the
electricity supply industry;
(b) prepare, publish and revise policies, plans and strategies
for development of the electricity subsector;
(c) take all measures necessary to reorganise and
restructure the electricity supply industry with a view
to attracting private sector and other participation in
such parts of the industry, phases or time frames as he
deems proper;
(d) through the Rural Energy Agency, prepare, revise and
publish the Rural Electrification Plan and Strategy;
(e) promote the development of the electricity subsector,
including the development of indigenous energy
resources;
(f) take measures to support and promote rural
electrification in accordance with the Rural Energy
Act, including the provision of funding for the Rural
Energy Fund;
Powers of
Minister
Act No. 3 of 2020 s. 13
Cap. 321

ccordance with the Rural Energy
Act, including the provision of funding for the Rural
Energy Fund;
Powers of
Minister
Act No. 3 of 2020 s. 13
Cap. 321

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(g) formulate policy by which electricity may be imported
or exported;
(h) cause to be conducted inquiries into accidents or
disasters caused by electricity; and
(i) any other function as he may deem necessary. (2) Without prejudice to subsection (1), the Minister
shall exercise emergency powers and co-ordinate emergency
responses in close co-ordination with the Authority and a
licensee. (3) For the purpose of this section, “emergency powers”
means the mandate of the Minister to declare any situation
as an emergency where the situation is characterised by an
immediate unforeseen shortfall in electricity supply leading to
an inability to meet electricity demand. 5.–(1) There shall be a Commissioner for Electricity Affairs
appointed by the President. (2) The Commissioner for Electricity Affairs shall be the
advisor of the Minister on matters referred to under section 4. [s. 4A]
6.

by the President. (2) The Commissioner for Electricity Affairs shall be the
advisor of the Minister on matters referred to under section 4. [s. 4A]
6.

The Authority shall have powers to-
(a) award licences to entities undertaking or seeking to
undertake a licensed activity;
(b) approve and enforce tariffs and fees charged by
licensees;
(c) approve licensees’ terms and conditions of electricity
supply; and
(d) approve initiation of the procurement of new electricity
supply installations. [s. 5]
7.–(1) The functions of the Authority in relation to electricity
supply industry shall be to-
(a) protect customer’s interests through the promotion of
competition;
Commissioner
responsible for
electricity affairs
Act No. 3 of 2020 s. 14
Powers of
Authority
Functions of
Authority
Act No. 3 of 2020 s. 15

mpetition;
Commissioner
responsible for
electricity affairs
Act No. 3 of 2020 s. 14
Powers of
Authority
Functions of
Authority
Act No. 3 of 2020 s. 15

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(b) promote access to, and affordability of, electricity
services particularly in rural areas;
(c) promote least-cost investment and the security of
supply for the benefit of customers;
(d) promote improvements in the operational and
economic efficiency of the electricity supply industry
and efficiency in the use of electricity;
(e) promote appropriate standards of quality, reliability
and affordability of electricity supply;
(f) take into account the effect of the activities of the
electricity supply industry on the environment;
(g) protect the public from dangers arising from the
activities of the electricity supply industry; and
(h) promote the health and safety of persons in the working
environment employed in the electricity supply
industry.

electricity supply industry; and
(h) promote the health and safety of persons in the working
environment employed in the electricity supply
industry.

(2) The Authority shall, in the exercise of its functions,
consult the Minister on matters of common concern, including-
(a) matters of security nature;
(b) matters involving-
(i) preservation of the environment;
(ii) cross-border trade in electricity; and
(iii) development of other sources of energy in the
electricity supply. (3) A person who contravenes an order issued, direction or
condition given by the Authority in relation to performance of
its regulatory functions shall, on conviction, be liable to a fine
of not less than three million shillings. (4) A person who is aggrieved by the decision under
subsection (3) may, within twenty one days from the date of
the decision, appeal to the Fair Competition Tribunal. [s. 6]
8. The Authority shall submit to the Minister-
(a) an annual report as prepared in accordance with the
requirement of section 49 of the Energy and Water
Utilities Regulatory Authorities Act; and
Reports
Cap. 414

report as prepared in accordance with the
requirement of section 49 of the Energy and Water
Utilities Regulatory Authorities Act; and
Reports
Cap. 414

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(b) other reports on its activities relating to the electricity
supply industry as the Minister may request. [s. 7]
PART III
OPERATING LICENCE
(a) Provisional Licences and Licences
9.–(1) The following activities shall require a licence, namely-
(a) generation;
(b) transmission;
(c) distribution;
(d) supply;
(e) system operation;
(f) cross-border trade in electricity;
(g) physical and financial trade in electricity; and
(h) electrical installation. (2) Any person intending to conduct any of the activities
stipulated in subsection (1) shall be required to apply to the
Authority for a licence, unless-
(a) that person has been exempted by the Authority; or
(b) the activity is exempted, under subsection (3) or (4) of
section 20. (3) The Authority shall, by rules, make procedure for
application of a licence.

) the activity is exempted, under subsection (3) or (4) of
section 20. (3) The Authority shall, by rules, make procedure for
application of a licence.

(4) The issuance of a licence to a person in relation to a
certain activity shall not limit the Authority’s power to grant a
licence to another person providing the same or similar activity
within the same area, unless the licence states otherwise. (5) A person who contravenes the provisions of this section
commits an offence and on conviction, shall be liable to a fine
not exceeding ten million shilling or to imprisonment for a
term not exceeding five years or to both. [s. 8]
Duty to obtain
licence

e liable to a fine
not exceeding ten million shilling or to imprisonment for a
term not exceeding five years or to both. [s. 8]
Duty to obtain
licence

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
10.–(1) The licence issued under section 9 shall, among others,
contain-
(a) the name and address of the licensee;
(b) the licence term;
(c) the licensed activities;
(d) the basis for the determination of tariffs and fees;
(e) the licensee’s reporting requirements;
(f) the area of operation; and
(g) technical, financial and other necessary information as
may be required by the Authority.

s reporting requirements;
(f) the area of operation; and
(g) technical, financial and other necessary information as
may be required by the Authority.

(2) The Authority shall, when considering application for a
licence take into account-
(a) the contribution of the proposed activities to meet the
future electricity needs of customers;
(b) the consistency of the proposed activities with the
Power System Expansion Plan and Strategies and the
Rural Electrification Plan and Strategies;
(c) the contribution of the proposed activities to competitive
conditions in the electricity supply industry;
(d) the social and environmental impacts of the proposed
activities;
(e) the impact that the proposed activities may have on
health and safety of employees and the public;
(f) the legal, technical, economic and financial capacity of
the applicant to conduct the proposed activities;
(g) the costs of the activities and the effect on electricity
prices to customers;
(h) any representations and objections to the proposed
activities made by the public; and
(i) other public interests which may be affected by the
proposed activities.

tations and objections to the proposed
activities made by the public; and
(i) other public interests which may be affected by the
proposed activities.

(3) The Authority shall not issue a licence for any activity
where the applicant exhibits evidence of likelihood of the
applicant to fail to comply with-
(a) technical requirements provided by the Authority;
Contents and
consideration of
licence

nce of likelihood of the
applicant to fail to comply with-
(a) technical requirements provided by the Authority;
Contents and
consideration of
licence

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(b) the requirement to obtain water rights pursuant to the
provision of the Water Resources Management Act,
and other relevant laws, where such requirement is
applicable to the activity; and
(c) applicable environmental, consumer protection and
public safety standards and requirements. (4) In issuance of a licence, the Authority may attach such
conditions including-
(a) a requirement to maintain separate accounts for a
licensee’s separately licensed activities;
(b) the licensee’s debt limits; and
(c) any other condition which the Authority may deem
necessary. [s.

r a
licensee’s separately licensed activities;
(b) the licensee’s debt limits; and
(c) any other condition which the Authority may deem
necessary. [s.

9]
11.–(1) The Authority may suspend, vary or revoke a licence if
the licensee violates terms and conditions of the licence, or any
rule or regulations made under this Act, whereby-
(a) the violation causes significant damage on public or
private interest;
(b) the violation occurs in a place repeatedly or persists for
considerable period of time; or
(c) the Authority determines that, as a consequence of the
violation, the licensee is unable to fulfil his obligations. (2) The Authority may change terms and conditions of any
licence issued under this Act, provided that-
(a) the licensee has been informed of the change; or
(b) the modification is in the public interest, where
the benefits to the public significantly exceed any
disadvantages to the licensee. [s. 10]
12.–(1) A licensee seeking to transfer his licence shall, in
writing, apply to the Authority. (2) An application for transfer of a licence shall be made
to the Authority and be accompanied by an application of the
Cap. 331
Suspension,
modification and
revocation of
licence
Transfer of
licence

l be made
to the Authority and be accompanied by an application of the
Cap. 331
Suspension,
modification and
revocation of
licence
Transfer of
licence

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
person to whom the licensee intends to transfer the licence
and the prescribed fee. (3) The Authority shall satisfy itself of the legal, technical,
economic and financial capacity of the transferee in
undertaking the proposed activities and shall not withhold the
consent to any application unless it has reasons to believe that
the transferee is unable to adequately undertake the licensed
activities or the public interest shall be prejudiced by such
transfer. (4) A licensee shall not transfer his licence without prior
written consent of the Authority, where-
(a) the transfer is made to another person who is not a
licensee;
(b) the transfer relates to the assets which the licensee
requires to conduct its licensed activity; or
(c) a third party becomes, by virtue of the transfer, a
majority shareholder to the licensee. (5) The transfer of any licence in violation of this section
shall be void. [s.

es, by virtue of the transfer, a
majority shareholder to the licensee. (5) The transfer of any licence in violation of this section
shall be void. [s.

11]
13.–(1) The Authority may issue a provisional licence to carry
out assessments, studies and any other activities necessary for
application of a licence. (2) The Authority may, in consultation with the Minister and
by way of a public tender, invite applications for a provisional
license to undertake activities specified in subsection (1) and
issue such a licence with condition that the holder shall, upon
receipt of the provisional licence, apply to the Authority for a
licence. (3) Where a licensee intends to expand his licensed activities,
he shall apply to the Authority for an approval to do so. (4) The Authority shall make rules-
(a) to determine when an expansion of licensed activities
shall be considered significant;
(b) prescribing criteria upon which provisional licence
shall be required and be granted; and
Provisional
licence

ies
shall be considered significant;
(b) prescribing criteria upon which provisional licence
shall be required and be granted; and
Provisional
licence

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(c) terms and conditions of provisional licence. (5) The Authority may revoke a provisional licence if the
holder-
(a) violates any provision of the licence;
(b) is unable to fulfill his obligations pursuant to the
provisional licence; or
(c) fails to initiate work required within the time specified
in the provisional licence. (6) A licensee seeking a transfer of a provisional licence
issued by the Authority shall apply to the Authority to do so. (7) A provisional licence holder shall not transfer the same
in the absence of a written approval by the Authority. (8) The transfer of any provisional licence in violation of
subsection (7) shall be void. [s. 12]
(b) Rights and Obligations of Licensees
14.

thority. (8) The transfer of any provisional licence in violation of
subsection (7) shall be void. [s. 12]
(b) Rights and Obligations of Licensees
14.

A licensee shall be entitled to-
(a) conduct his licensed activity;
(b) plan, develop, install, maintain and refurbish the
facilities and equipment required to undertake his
licensed activity;
(c) earn a fair return on his investment, provided that his
investment has been approved by the Authority;
(d) collect revenues in accordance with his lawfully
approved tariffs and fees;
(e) provide, at the request of his customers, metering and
data collection equipment; and
(f) open access to transmission and distribution systems,
where such access is permitted by the Authority. [s. 13]
15.–(1) A licensee shall purchase or sell electricity on the basis
of contracts to be approved by the Authority. (2) The Authority may, where necessary, inspect licensed
activities at any reasonable time. Rights of licensee
General
obligations of
licensee
Act No. 3 of 2020 s. 16

y may, where necessary, inspect licensed
activities at any reasonable time. Rights of licensee
General
obligations of
licensee
Act No. 3 of 2020 s. 16

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(3) The Authority may, in consultation with the Minister,
waive any requirement relating to a licensee’s licensed activity
pursuant to this Act. (4) A licensee shall, at all time during the term of his licence,
comply with the provisions relating to-
(a) terms and conditions of his licence;
(b) the provisions of this Act; and
(c) all other relevant laws. (5) Subject to rules established by the Authority and
applicable contract provisions, a licensee shall-
(a) safely and reliably provide services arising from his
licensed activities to other customers;
(b) provide access to its transmission or distribution assets
on an open and non-discriminatory basis;
(c) employ a sufficient number of qualified personnel to
ensure compliance with the licence terms;
(d) conclude a Performance Agreement with the Authority;
and
(e) prior to concluding any contract with another licensee
or a customer, submit such contract to the Authority
for its approval.

h the Authority;
and
(e) prior to concluding any contract with another licensee
or a customer, submit such contract to the Authority
for its approval.

(6) In the conduct of his business, a licensee shall-
(a) ensure that his customers are treated on a non-
discriminatory basis;
(b) ensure that comparable services are provided to all
customers;
(c) not engage in any activities that disrupt or inhibit
competition; and
(d) ensure that none of his separately licensed activities give
any subsidy to, or receive any subsidy from any other
separately licensed activity or any related business. (7) A licensee shall pay licence fees to the Authority pursuant
to this Act and the Energy and Water Utilities Regulatory
Authority Act. (8) A licensee shall take into account a need to preserve
natural beauty, flora and fauna, buildings and sites of geological,
archaeological or cultural significance. Cap. 414

into account a need to preserve
natural beauty, flora and fauna, buildings and sites of geological,
archaeological or cultural significance. Cap. 414

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(9) A licensee may require a consumer to make account,
deposit commensurate with the consumer’s estimated electrical
energy consumption for a period agreed upon before electrical
energy is supplied. (10) The licensee may, taking into consideration the
consumption and change of electrical energy tariffs, revise the
amount of the deposit. (11) In this section “account deposit” means a payment or
payment assurance made by the consumer to the licensee as
assurance for electric energy consumed for an agreed period
in the form of cash, letter of credit, escrow account, bank
payment guarantee or any other similar arrangements. (12) A licensee who does not intend to renew his licence
shall be required to give a notice to the Authority twelve
months before the expiry of the period of licence or within
such period as the Authority may prescribe. [s. 14]
16.

e a notice to the Authority twelve
months before the expiry of the period of licence or within
such period as the Authority may prescribe. [s. 14]
16.

A licensee shall, except where the decommissioning
infrastructure is reverted to the Government, decommission
an electricity supply installation upon cessation of the licensed
activities in a manner prescribed in the rules. [s. 14A]
17.–(1) A licensee shall maintain confidentiality of information
and data under his custody relating to other licensees or his
customers. (2) A licensee shall keep proper records and books of
accounts as may be prescribed by the Authority. (3) The Authority may specify simplified record keeping
and reporting requirements for licensees or persons exempted
from the requirements of section 20. (4) A licensee shall submit to the Authority in a true and
correct form all data and information relating to performance
of his functions as may be required by the Authority. Obligation to
decommission
Act No. 3 of 2020 s. 17
Information
and reporting
obligations

ormance
of his functions as may be required by the Authority. Obligation to
decommission
Act No. 3 of 2020 s. 17
Information
and reporting
obligations

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.550
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(5) A licensee shall, annually or within a prescribed time,
submit a report to the Authority on his licensed activities,
which shall include-
(a) financial data;
(b) technical data related to systems and equipment;
(c) operational parameters; and
(d) customer service information. (6) A licensee who possesses more than one licence shall
keep separate books of accounts and submit separate reports
for each licence. (7) A licensee shall notify the Authority annually of any
accident that has occurred in any part of the work or in
connection with the licensed activities but the notice of loss of
life or serious personal injury occasioned by an accident shall
immediately be reported to the Authority. (8) A person who contravenes any provision of this section
commits an offence and, on conviction, shall be liable to a fine
not exceeding four million shillings or to imprisonment for a
term not exceeding three years or to both. [s. 15]
18.

iction, shall be liable to a fine
not exceeding four million shillings or to imprisonment for a
term not exceeding three years or to both. [s. 15]
18.

Subject to subsection (1) of section 10, every generation
licence shall include-
(a) the source, capacity and technology of the generation
facilities;
(b) the location of the generation facilities; and
(c) all applicable licence conditions. [s. 16]
19.–(1) Subject to subsection (1) of section 10, transmission
licences shall include-
(a) the nature, capacity and technology of transmission
facilities;
(b) service territory within which a licensee is licensed to
provide transmission services on an exclusive basis or
the specific transmission facilities to which the licence
applies; and
Generation
licence
Transmission
licence

ssion services on an exclusive basis or
the specific transmission facilities to which the licence
applies; and
Generation
licence
Transmission
licence

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.551
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(c) all applicable licence conditions. (2) Subject to subsection (1) of section 10, a transmission
licensee shall be required to-
(a) comply with all applicable requirements of the Grid
Code;
(b) maintain, improve and expand his transmission
facilities in an economical manner, taking due account
of the Power System Expansion Plan; and
(c) provide transmission services to all users of his facilities
on a non-discriminatory basis. (3) Within three months of receiving a licence, a
transmission licensee shall establish and publish procedures
governing requests to connection access to its transmission
facilities, which shall be subject to review and modification by
the Authority.

procedures
governing requests to connection access to its transmission
facilities, which shall be subject to review and modification by
the Authority.

(4) A transmission licensee shall not refuse an applicant a
right to connect to its transmission facilities, provided that-
(a) the applicant has fulfilled the requirements set out in
the procedures provided for under subsection (3);
(b) the Authority finds that the licensee is able to provide
a connection while maintaining transmission services
at charges, terms and conditions consistent with the
public interest. [s. 17]
20.–(1) The Authority may exempt any person from application
of the requirements of section 9. (2) An exemption under subsection (1) may be of a general
or specific application, and be subject to such terms, conditions
and limitations as the Authority may deem proper. (3) A person who undertakes generation activities in rural
areas where the installed generation capacity at a single site is
less than one megawatt shall be exempted from the requirement
to obtain a licence. (4) A person who undertakes off-grid distribution and
supply activities in rural areas where the maximum demand on
Exemptions

ent
to obtain a licence. (4) A person who undertakes off-grid distribution and
supply activities in rural areas where the maximum demand on
Exemptions

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.552
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
the off-grid system is below one megawatt shall be exempted
from the conditions stipulated under section 9. (5) The Authority may make rules in respect of activities
which are exempted from the requirement as provided for
under section 9. (6) A person exempted under this section shall, in a manner
to be provided by the Authority, report to the Authority such
information on his activities as the Authority may require. [s. 18]
21.–(1) A licence issued under this Act shall remain in force
for a period prescribed therein. (2) A licensee shall, within the period prescribed by the
Authority, apply for a new licence. (3) The Authority may renew a licence on such terms and
conditions as it may determine. [s.

riod prescribed by the
Authority, apply for a new licence. (3) The Authority may renew a licence on such terms and
conditions as it may determine. [s.

19]
22.–(1) The Authority shall designate a person to be a system
operator and licence such person to-
(a) co-ordinate the power supply system, to obtain
instantaneous balance between generation and
consumption of electricity;
(b) be responsible for dispatching all generation
installations connected to transmission facilities;
(c) co-ordinate planned generation and planned
transmission outages;
(d) monitor the cross-border trade of electricity;
(e) recommend amendments to the Grid Code; and
(f) perform such other functions as may be prescribed in
its licence or in rules issued by the Authority. (2) The system operator shall update on an annual basis, a
Power System Expansion Plan taking into consideration-
(a) policies, plans and strategies for the electricity sub-
sector; and
(b) proposed developments in generation and demand. Duration of
licence
System and
market
operations

d strategies for the electricity sub-
sector; and
(b) proposed developments in generation and demand. Duration of
licence
System and
market
operations

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.553
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(3) In the performance of his licensed activities, the system
operator shall abide by the Grid Code. (4) The Authority shall designate a person to be a market
operator and license such person to-
(a) administer the operations of the wholesale electricity
market;
(b) admit members to the wholesale electricity market and
require the lodging of securities from such members;
(c) receive bids and offers to buy and sell electricity in the
wholesale electricity market;
(d) clear, reconcile and settle the wholesale electricity
market;
(e) collect such contract and metering information as may
be required by his licence; and
(f) recommend amendments to the market rules. (5) The market operator shall, at all times in the performance
of licensed activities, abide by the market rules. (6) The Authority shall establish a criteria for designation of
the system operator and market operator. [s.

ed activities, abide by the market rules. (6) The Authority shall establish a criteria for designation of
the system operator and market operator. [s.

20]
23.–(1) Subject to subsection (3) of section 9, distribution
licences shall include, among others-
(a) the authorised area and the franchise area of the
licensee;
(b) the duration of the licence; and
(c) all applicable licence conditions. (2) Subject to conditions of licence and rules issued by the
Authority, a distribution licensee shall-
(a) comply with all applicable requirements of the Grid
Code;
(b) comply with all applicable requirements of the
Distribution Code;
(c) comply with all application requirements or rules
issued by the Authority in respect of customer service
standards;
Distribution
licence

ion Code;
(c) comply with all application requirements or rules
issued by the Authority in respect of customer service
standards;
Distribution
licence

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.554
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(d) comply with all application requirements or rules issued
by the Authority in respect of safety and technical
standards;
(e) maintain, improve and expand his distribution facilities
in uneconomical manner in order to provide universal
access within his franchise area; and
(f) provide distribution services to all users of his facilities
on a non-discriminatory basis.

rovide universal
access within his franchise area; and
(f) provide distribution services to all users of his facilities
on a non-discriminatory basis.

(3) A distribution licensee shall, within three months of
receiving a licence-
(a) establish and publish procedures governing requests
to connect to his distribution facilities, which shall be
subject to the Authority’s review and approval;
(b) not refuse an applicant the right to connect to his
distribution facilities provided that the applicant has
fulfilled the requirements set out in this Act;
(c) establish and publish systems and procedures to receive,
register, investigate, resolve and report complaints
made by his customers;
(d) establish and publish a standard contract for the
distribution of electricity to a customer, which shall
include the customer’s rights and duties, and be subject
to the Authority’s review and approval; and
(e) establish and publish a Customer Service Charter,
which shall reflect the complaint procedures, customers’
rights and duties provided for under paragraphs (c)
and (d). (4) The Authority shall make rules on the terms and
conditions of licences for supply of electricity to customers. [s. 21]
24.–(1) The Authority shall make rules on the terms and
conditions of licences for cross-border trade of electricity.

lectricity to customers. [s. 21]
24.–(1) The Authority shall make rules on the terms and
conditions of licences for cross-border trade of electricity.

(2) All application for cross border trade of electricity shall
be accompanied by relevant agreements which shall be the
basis for such application. Cross-border
licences of
electricity

r trade of electricity shall
be accompanied by relevant agreements which shall be the
basis for such application. Cross-border
licences of
electricity

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.555
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(3) Where a licensee amends the agreements referred to in
subsection (2), or enters into new agreements, the amended or
the new agreements, as the case may be, shall be submitted to
the Authority for verification. [s. 22]
PART IV
TARRIFS AND CHARGES
25.–(1) The Authority may regulate-
(a) tariffs for the sale of electricity by licensees to other
licensees, unless the electricity is sold in markets
determined by the Authority to be competitive;
(b) tariffs for the sale of electricity by licensees to customers
other than eligible consumers;
(c) charges for connection to, and the use of any
transmission system;
(d) charges for connection to, and the use of any distribution
system;
(e) prices and charges in respect of goods and services
provided by licensees determined by the Authority to
be subject to tariff regulation.

system;
(e) prices and charges in respect of goods and services
provided by licensees determined by the Authority to
be subject to tariff regulation.

(2) Subject to the provisions of subsection (1), the Authority
shall be guided by the principles that-
(a) tariffs shall reflect the cost of efficient business
operation;
(b) tariffs shall allow licensees to recover a fair return on
their investments, provided that such investments have
been approved by the Authority;
(c) costs covered by subsidies or grants provided by the
Government or donor agencies shall not be reflected in
the costs of business operation;
(d) tariff adjustments shall, to the extent possible, ensure
price stability;
(e) access charges for use of a transmission or distribution
system shall be based upon comparable charges for
comparable use;
Tariffs regulation

ity;
(e) access charges for use of a transmission or distribution
system shall be based upon comparable charges for
comparable use;
Tariffs regulation

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.556
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(f) no customer class should pay more to a licensee than
is justified by the costs it imposes upon such a licensee;
and
(g) tariffs shall enhance efficiency in electricity
consumption and shall encourage adequate supply to
satisfy demand. (3) Regulated tariffs and charges may include automatic
tariff adjustments, as approved by the Authority to reflect
periodic changes in-
(a) the cost of fuel;
(b) the cost of power purchases or the rate of inflation;
and
(c) the currency fluctuation. (4) Notwithstanding the provisions of subsection (2), the
Authority may prescribe maximum tariffs of a generic nature
or simplified tariff methodologies, applicable to licensees or
persons exempted under section 20. (5) Pursuant to rules made by the Authority, a licensee
may require an advance financial deposit from a customer as
security for the customer’s future obligations. [s. 23]
26.–(1) A licensee shall submit proposed regulated tariffs to
the Authority for approval.

r as
security for the customer’s future obligations. [s. 23]
26.–(1) A licensee shall submit proposed regulated tariffs to
the Authority for approval.

(2) The Authority shall make amendments or review the
regulated tariffs charged by a licensee once in every three years,
and such amendments shall not be applied retrospectively. (3) Where the Authority discovers that any tariff, charge
term or condition of electricity service is not in compliance
with this Act, it may require-
(a) changes of the tariff, charge, term or condition of
electricity service; and
(b) the licensee to compensate the affected customers in
amounts established by the Authority. (4) A licensee shall not change a regulated tariff, unless-
(a) such change has been approved by the Authority; and
Tariff applications
and tariff changes
Act No. 3 of 2020 s. 18

nge a regulated tariff, unless-
(a) such change has been approved by the Authority; and
Tariff applications
and tariff changes
Act No. 3 of 2020 s. 18

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.557
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(b) the licensee has provided a ninety days notice of his
intention to make such change to the public. (5) A licensee’s notice under paragraph (b) of subsection (4)
shall clearly indicate the change and the date on which such
change shall become effective. (6) The Authority may, when circumstances dictate, allow
the tariff change provided for in subsection (4) to take effect
on less than ninety days. (7) A licensee shall indicate a change of circumstances or
assumption that underlies an existing regulated tariff in its
application for a tariff change. (8) Notwithstanding any payments made for supply of
electrical energy, electric supply lines shall be property of the
licensee and may be used to supply other persons:
Provided that, such use does not prejudicially affect the
supply of electrical energy to the person who first required
such electric supply lines to be laid down or erected.

does not prejudicially affect the
supply of electrical energy to the person who first required
such electric supply lines to be laid down or erected.

(9) A person who made payment in terms of subsection
(8) shall be entitled to repayment by the licensee through
reimbursement of cost of the electricity purchased or consumed
at the rate and in the manner specified in the regulations. [s. 24]
27.–(1) This section shall be applicable only to legally binding
agreements concluded subsequent to the entry into force of
this Act. (2) A licensee may, by rules made by the Authority, conclude
agreements for the purchase and sale of electricity. (3) An agreement under subsection (1) concluded without
an approval of Authority shall be void, unless such agreements
relate to-
(a) the sale of electricity to eligible customers;
(b) electricity purchase and sale in markets determined by
the Authority to be competitive; or
(c) Standardised Power Purchase Agreement and tariffs
for small power projects. Power purchase
agreements

mined by
the Authority to be competitive; or
(c) Standardised Power Purchase Agreement and tariffs
for small power projects. Power purchase
agreements

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.558
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(4) The costs incurred by a licensee arising from its
obligations pursuant to a power purchase agreement may only
influence a licensee’s regulated tariffs if the Authority deems
that the costs were prudently incurred. [s. 25]
Customer Rights and Public Protection1
28.–(1) A licensee may suspend electricity supply services to
its customers due to-
(a) danger to life, health or safety;
(b) danger or risk of damage to property;
(c) instruction of the system operator;
(d) insufficient supply of electricity;
(e) instruction of the Authority, in the event of an
emergency;
(f) operational breakdowns in electrical facilities;
(g) in order to carry out-
(i) connections to its distribution facilities;
(ii) scheduled or unscheduled maintenance;
(iii) repairs, inspections or refits;
(iv) tests or control measurements;
(v) network expansion; and
(vi) other activities which cannot be accomplished
without a suspension of service.

ts;
(iv) tests or control measurements;
(v) network expansion; and
(vi) other activities which cannot be accomplished
without a suspension of service.

(2) Notwithstanding subsection (1), suspension of electricity
supply services by a licensee shall-
(a) be as brief as possible;
(b) affect the fewest number of customers possible; and
(c) minimise suspension of supply to priority customers
in accordance with the licensee’s contingency plans
referred to in subsection (5). (3) A licensee shall, in non-emergency situations, give
advance notice of the suspension of electricity services
pursuant to rules established by the Authority. 1 This subheading was introduced by Act No. 3 of 2020, s. 19. Service
obligations
Act No. 3 of 2020 s. 20

suant to rules established by the Authority. 1 This subheading was introduced by Act No. 3 of 2020, s. 19. Service
obligations
Act No. 3 of 2020 s. 20

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.559
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(4) The Authority shall, where there is insufficient supply
of electricity to meet the demand of all its customers, require
a licensee to suspend electricity services in order to establish
and follow contingency plans to supply priority customers. (5) Subject to rules made by the Authority, a licensee shall
be liable to compensate the customer who suffers loss of
property or physical injury as a result of an act of a licensee
which amounts to-
(a) unlawful disconnection of electricity;
(b) unlawful suspension of electricity services; or
(c) poor quality of supply.

licensee
which amounts to-
(a) unlawful disconnection of electricity;
(b) unlawful suspension of electricity services; or
(c) poor quality of supply.

(6) The licensee shall be entitled to recover from the
customer from loss suffered as a result of-
(a) loss or damage in the licensee’s equipment or properties
which are in the custody of the customer or customer’s
premises;
(b) loss or damages occasioned as a result of the licensee
undertaking to rectify or repair the damage unlawfully
caused by the customer;
(c) loss or damages resulting from the customer tempering
with licensee’s installations or equipment, or maliciously
or negligently causing physical or financial loss directly
or indirectly to the licensee; or
(d) other loss or damage which, in the natural course of
things, does not require proof of having been caused by
the customer. (7) The amount of electrical energy consumed by the
customer or the number of hours during which the supply is
given, the quantity or time connected with the supply shall
be ascertained by meters of a type approved by the Tanzania
Bureau of Standards or determined in a manner agreed upon
by the licensee and the customer. (8) The Minister may make regulations prescribing the
manner in which subsections (6) and (7) may be implemented. [s. 26]

e licensee and the customer. (8) The Minister may make regulations prescribing the
manner in which subsections (6) and (7) may be implemented. [s. 26]

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.560
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
29. The Authority shall make rules in respect of a licensee’s
obligations to-
(a) serve other licensees and customers;
(b) connect other licensees and customers; or
(c) disconnect other licensees and customers. [s. 27]
30.–(1) A licensee may disconnect the supply of electricity to
a customer who-
(a) unlawfully connected to the electricity system; or
(b) is in breach of his contractual obligation in respect of
electricity supply:
Provided that, disconnection does not violate contract or
rules made by the Authority. (2) A licensee shall reconnect a customer’s electricity service
upon full payment of a past due account and reconnection fees. (3) In the event of a dispute relating to a payment obligation,
reference for resolution may be made to the Authority. [s.

ount and reconnection fees. (3) In the event of a dispute relating to a payment obligation,
reference for resolution may be made to the Authority. [s.

28]
31.–(1) A distribution and supply licensee shall prepare-
(a) customer protection standards;
(b) service quality standards;
(c) performance standards;
(d) procedures that are appropriate to the customers of
the licensee, including simplified procedures for the
licensee’s customers in rural areas;
(e) programmes to inform customers on electricity related
issues. (2) A distribution and supply licensee shall establish-
(a) an office to receive and respond to customer questions,
concerns and complaints; and
(b) maintain trained staff to address the issues under
paragraph (a) timely and transparently. (3) The Authority may conduct customer education
programmes and require licensees to conduct the same. [s. 29]
Licensee’s rules
Act No. 3 of 2020 s. 21
Disconnection of
electricity service
Service standards
and customer
complaints
Act No. 3 of 2020 s. 22

s. 29]
Licensee’s rules
Act No. 3 of 2020 s. 21
Disconnection of
electricity service
Service standards
and customer
complaints
Act No. 3 of 2020 s. 22

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.561
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
PART V
MONITORING, INSPECTION, INVESTIGATIONS
AND COMPLIANCE
32.–(1) The Authority shall establish systems and procedures to
monitor and measure a licensee’s performance and compliance
with this Act. (2) Where prices in a part or all of the electricity market have
been deregulated, the Authority shall monitor the behaviour
of licensees participating in such parts of the market. (3) The Authority may require the market operator to assist
the Authority in fulfilling the function specified in subsection (2). (4) The Authority may collect from a licensee any
information it reasonably requires to fulfil its functions
pursuant to this Part. (5) Upon reasonable notice, authorised representatives of
the Authority shall be given access to inspect the licensee’s
premises, installations, books and accounts and other
documentation for the purpose of investigating the licensee’s
compliance with this Act.

censee’s
premises, installations, books and accounts and other
documentation for the purpose of investigating the licensee’s
compliance with this Act.

(6) Information provided by a licensee to the Authority shall
be treated as public information unless upon specific request
by the licensee, to treat such information as confidential. (7) The Authority shall, by rules, publish periodic reports
on the performance of licensees, including the quality,
reliability and security of supply, progress with electrification,
investment, efficiency of operations and other standards of
customer services. [s. 30]
33.–(1) The Authority shall, in order to monitor and assess
compliance with this Act, have right to-
(a) inspect the construction of electricity facilities and
works;
(b) inspect existing facilities to ensure conformity with
regulations, rules and standards; and
Monitoring
Act No. 3 of 2020 s. 23
Inspection
Act No. 3 of 2020 s. 24

sting facilities to ensure conformity with
regulations, rules and standards; and
Monitoring
Act No. 3 of 2020 s. 23
Inspection
Act No. 3 of 2020 s. 24

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.562
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(c) test metering facilities to ensure their adequacy and
accuracy. (2) In carrying out inspection and test pursuant to
subsection (1), an officer or an authorised representative of
the Authority may, on reasonable notice, enter a licensee’s
premises at reasonable time. [s. 31]
34.–(1) The Authority may, upon receipt of a complaint or on
its own motion, investigate-
(a) a licensee for non-compliance with this Act; or
(b) any aspect of a licensee’s tariff. (2) The Authority shall consult with the Fair Competition
Commission in any investigation into anti-competitive
behaviour. (3) The Authority may conduct inquiries into the cause of
any accident relating to electricity facilities which affect the
safety of electricity sector operation, consumers or the public;
and may order necessary corrective measures. [s.

ctricity facilities which affect the
safety of electricity sector operation, consumers or the public;
and may order necessary corrective measures. [s.

32]
35.–(1) Where the Authority is of the opinion that a licensee
has violated or is in violation of a condition of his licence, any
requirement or order under this Act, the Authority may-
(a) direct the licensee to comply with that condition,
requirement or order;
(b) suspend or revoke the licence in accordance with this
Act; or
(c) impose penalties. (2) The Authority shall make rules prescribing penalties for-
(a) engagement in any licensed activity without a licence;
(b) breach of licence conditions;
(c) tampering with or adjusting any installation or part of
an installation;
Investigations
and inquiries
Compliance

(b) breach of licence conditions;
(c) tampering with or adjusting any installation or part of
an installation;
Investigations
and inquiries
Compliance

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.563
THE ELECTRICITY ACT [CAP. 131 R.E.

Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.563
THE ELECTRICITY ACT [CAP. 131 R.E.

2023]
(d) manufacturing, importation or sale of any equipment
so as to cause or likely to cause harm to human life or
damage equipment or property;
(e) affixing or causing to be affixed any advertisement,
bill, notice or any paper against or upon, or otherwise
defacing any building, post, bracket, other equipment
or an enclosure thereof used for, or in connection with
any electrical installation, without a consent of the
licensee or the Authority;
(f) offences relating to-
(i) negligently cause of injury or damage to any
person or property in respect of any electrical
supply, installation, equipment or any part thereof;
(ii) damage to any meter or other instrument used on
or in connection with any licensed installation for
recording the output or consumption of energy;
(iii) fraudulently-
(aa) abstracting electricity;
(bb) consuming electricity;
(cc) altering the index of any meter or other
instrument used on or in connection with
any installation for recording the output or
consumption of electricity; or preventing any
such meter or instrument from duly recording
the output or consumption of electricity;
(dd) abstracting any oil, lubricant, additive from a
transformer or any other part of an electrical
installation.

utput or consumption of electricity;
(dd) abstracting any oil, lubricant, additive from a
transformer or any other part of an electrical
installation.

(3) A person who fraudulently abstracts, consumes or uses
any electricity shall be deemed to have committed theft; and
the existence of artificial means for such abstraction shall be
prima facie evidence of such act. [s. 33]

shall be deemed to have committed theft; and
the existence of artificial means for such abstraction shall be
prima facie evidence of such act. [s. 33]

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THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
PART VI
ACCESS TO LAND FOR INSTALLATIONS
36.–(1) A licensee may, upon issuance of a written notice to
the landowner and to the Authority, enter private property for
purposes of operating, repairing or maintaining his facilities. (2) A licensee entering a property pursuant to subsection
(1) shall-
(a) use his best efforts to protect the rights and property of
the landowner; and
(b) upon completion of the work, keep such property to its
former condition. (3) A licensee shall remove or trim trees or other high
vegetation which may pose threat to the safe and reliable
operation of his facilities. (4) Upon application by the owner of land on which a
licensee has placed an electric supply line, the Authority may
order the licensee, subject to any condition, alter the position
of the line or remove the same.

has placed an electric supply line, the Authority may
order the licensee, subject to any condition, alter the position
of the line or remove the same.

(5) An electrical supply lines, meters, fittings, works or
apparatus belonging to a licensee and lawfully placed or
installed in or upon any premises which does not belong to the
licensee, whether or not it is fixed to any part of such premises
shall-
(a) remain the property of, and may be removed by the
licensee;
(b) not be subject to the land road’s distress for rent; and
(c) not be the subject of execution arising from any process
of law or legal proceedings in insolvency or liquidation
against the owner or occupier of such premises. [s. 34]
37.–(1) The licensee shall acquire a wayleave for electricity
facilities. (2) Owners of property on or bordering a wayleave shall
not interfere with a licensee’s rights related thereto. Compulsory
access
Wayleaves
Act No. 3 of 2020 s. 25

property on or bordering a wayleave shall
not interfere with a licensee’s rights related thereto. Compulsory
access
Wayleaves
Act No. 3 of 2020 s. 25

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.565
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(3) A licensee shall compensate a property owner for any
wayleave granted, and any dispute related to the amount of
compensation shall be settled as if the wayleave had been
obtained pursuant to the Land Acquisition Act. (4) Subject to the relevant laws, a licensee shall be entitled
to the free use of public bridges, roads, streets, pavements and
other infrastructure for the purpose of laying, connecting,
running or maintaining-
(a) overhead power lines;
(b) underground cables;
(c) gas pipelines;
(d) water pipelines;
(e) oil pipelines; and
(f) other installations as the Authority may approve. [s. 35]
38.–(1) A licensee may, if there is a need to acquire land for
the purpose of providing or maintaining electricity supply in
accordance with this Act and with the consent of the Authority,
request for allocation of land to the Minister responsible for
lands in accordance with this section.

this Act and with the consent of the Authority,
request for allocation of land to the Minister responsible for
lands in accordance with this section.

(2) The Authority shall provide a copy of its approval to the
Minister responsible for lands and to the owner of the land or
the person having interest in the land. (3) The Minister responsible for lands shall, if is satisfied
that the land or interest in land is required for the purpose
of providing or maintaining electricity supply services to
the public, pursue the acquisition of the land on behalf of
the licensee in accordance with the Land Act and the Land
Acquisition Act. [s. 36]
Cap. 118
Compulsory
acquisition of
land
Cap. 113
Cap. 118

behalf of
the licensee in accordance with the Land Act and the Land
Acquisition Act. [s. 36]
Cap. 118
Compulsory
acquisition of
land
Cap. 113
Cap. 118

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.566
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
PART VII
RURAL ELECTRIFICATION
39.–(1) The Minister shall, in consultation with the Rural Energy
Agency and the Authority, prepare a Rural Electrification Plan
and Strategies for Mainland Tanzania, and periodically amend
and update such plan. (2) The Minister shall submit annually to the National
Assembly a report on the progress and achievement of the
Rural Electrification Plan and Strategies which shall contain
information relating to-
(a) expansion of the main grid in rural areas; and
(b) development of off-grid electricity supply systems
in rural areas, including new and renewable energy
systems. [s. 37]
40.–(1) The Minister shall, in consultation with the Rural
Energy Agency and the Authority, cause to be established
and maintained a rural electrification database for Mainland
Tanzania to assist in the monitoring of progress and
establishment of the targets of rural electrification.

ural electrification database for Mainland
Tanzania to assist in the monitoring of progress and
establishment of the targets of rural electrification.

(2) The Minister shall periodically evaluate the impact
of the rural electrification program on economic and social
development. (3) The Authority may delegate its monitoring functions in
respect of electricity supply in rural areas to the Rural Energy
Agency, provided that the Rural Energy Agency submits
reports on its activities to the Authority. [s. 38]
41.–(1) The Minister shall cause to be adopted specific
policies and may impose specific requirements, levies, relief
and regulations for the promotion and development of rural
electrification, in accordance with the Rural Energy Act. Rural
Electrification
Plan and
Strategies
Monitoring and
evaluation
Implementation
measures
Cap. 321

ication, in accordance with the Rural Energy Act. Rural
Electrification
Plan and
Strategies
Monitoring and
evaluation
Implementation
measures
Cap. 321

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.567
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(2) The Authority may make rules prescribing different
technical, quality of supply and reporting standards applicable
to licensees’ activities in rural areas, where such standards
can reduce the costs of, and promote investment in rural
electrification. (3) The Authority may, in accordance with licence conditions
or exemption under section 9 and 20, provide enough time for
compliance with the specified standards and regulations under
this section. (4) For the promotion of the National Energy Policy in
relation to rural electrification, a lincesee shall be required
to supply electrical energy to the local communities where
electrical supply installations are located or along transmission
lines. (5) Where electrical generation is done by using natural
resources obtained in Mainland Tanzania, the licensee shall
be required to participate in development projects initiated by
communities located near the generation point.

n Mainland Tanzania, the licensee shall
be required to participate in development projects initiated by
communities located near the generation point.

(6) The Minister may make regulations prescribing the
manner in which subsection (4) and (5) may be implemented. [s. 39]
PART VIII
REORGANISATION OF THE
ELECTRICITY MARKET
42. The Minister may, in consultation with the Minister
responsible for finance and the Authority, restructure the
electricity supply industry in order to foster competition for
increased efficiency, enhance development of private capital
investment and promote regional electricity trading. [s. 40]
Restructuring of
electricity market

ed efficiency, enhance development of private capital
investment and promote regional electricity trading. [s. 40]
Restructuring of
electricity market

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.568
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
43.–(1) The Minister shall, within one year after coming
into force of this Act, prepare and publish a policy for the
reorganisation of the electricity market which policy shall
stipulate-
(a) the parts of the electricity market that shall be subject
to competition;
(b) the form of competition that shall be introduced in
each relevant part of the electricity market; and
(c) the time frames for the introduction of competition. (2) In formulation of a policy, the Minister shall take into
consideration-
(a) international best practices regarding competition
policies in the electricity sector;
(b) the effects of competition on customer services,
investment and private sector participation;
(c) the size and nature of the electricity market in Mainland
Tanzania;
(d) any need to restructure existing entities in the electricity
supply industry to give effect to competition; and
(e) the views of the Authority, Fair Competition
Commission, consumers and licensees.

e electricity
supply industry to give effect to competition; and
(e) the views of the Authority, Fair Competition
Commission, consumers and licensees.

(3) The Minister may, in consultation with the Authority,
the Fair Competition Commission, consumers and players in
the electricity supply industry, amend the policy at any time. (4) The Minister shall take such steps as is necessary to
give effect to the policy including the establishment of suitable
market institutions. (5) The Authority shall give effect to the policy by-
(a) preparation or amendment of the market rules, grid
code, Distribution Code or any other set of rules issued
by the Authority;
(b) defining eligible customers; and
(c) deregulation of tariffs in relevant sections of the market,
provided that the Authority is satisfied that competitive
conditions in such sections of the market are adequate. Reorganisation of
electricity market
Acts Nos. 17 of 2010 s. 48
23 of 2015 s. 56

t competitive
conditions in such sections of the market are adequate. Reorganisation of
electricity market
Acts Nos. 17 of 2010 s. 48
23 of 2015 s. 56

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.569
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
(6) The Minister may make regulations prescribing for-
(a) re-organisation of electricity market;
(b) promotion of competition in the generation,
transmission and distribution of electricity; and
(c) competition in consumer services, investment and
private sector participation in the electricity subsector. [s. 41]
PART IX
DISPUTES SETTLEMENT
44. A dispute between the participants in electricity supply
industry or between participants and the Authority or any
other Government authority relating to application of this Act
may be brought before the Fair Competition Commission for
mediation. [s. 42]
45.–(1) A person who is aggrieved by the decision of the
Authority, may appeal to the Fair Competition Tribunal in
accordance with the provisions of the Fair Competition Act.

aggrieved by the decision of the
Authority, may appeal to the Fair Competition Tribunal in
accordance with the provisions of the Fair Competition Act.

(2) Notwithstanding the right of appeal conferred by
subsection (1), any person aggrieved by an act of the Authority
shall not have the obligation to refer the dispute to the Fair
Competition Commission for mediation as a condition for
being heard by the Fair Competition Tribunal. [s. 43]
PART X
MISCELLANEOUS PROVISIONS
46. The Minister may make regulations prescribing-
(a) assurance that supplies of electricity are sufficient to
meet expected demand;
(b) protection of public from dangers arising from the
generation, transmission or supply of electricity,
Dispute
settlement
Appeal to Fair
Competition
Tribunal
Cap. 285
Regulations

angers arising from the
generation, transmission or supply of electricity,
Dispute
settlement
Appeal to Fair
Competition
Tribunal
Cap. 285
Regulations

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.570
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
or from the installation, maintenance or use of any
electrical equipment;
(c) promotion of access to electricity in rural areas in
accordance with the Rural Energy Act;
(d) promotion of research into, and the development
of new techniques relating to the electricity supply
industry. [s. 44]
47.

h the Rural Energy Act;
(d) promotion of research into, and the development
of new techniques relating to the electricity supply
industry. [s. 44]
47.

The Authority may make rules prescribing-
(a) the governing activities of licensees;
(b) the performance of its functions pursuant to this Act,
including-
(i) determination of tariffs and fees;
(ii) accounting and reporting standards;
(iii) customer service standards;
(iv) non-discriminatory access to transmission or
distribution facilities which are designated for
common carriage;
(v) the operation and management of the transmission
system, to be known as the Grid Code;
(vi) the operation and management of the distribution
system, to be known as the Distribution Code;
(vii) the trading of electricity, to be known as the
market rules; and
(viii) monitoring technical and safety standards;
(c) management and benchmarking of energy use;
(d) inspection of licensees’ books of accounts and premises;
and
(e) terms and conditions for licences. [s. 45]
48. The regulations and rules made under this Act shall be
published in the Gazette. [s. 46]
Cap. 321
Rules
Act No. 3 of 2020 s. 26
Publication of
regulations and
rules

s and rules made under this Act shall be
published in the Gazette. [s. 46]
Cap. 321
Rules
Act No. 3 of 2020 s. 26
Publication of
regulations and
rules

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.571
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
49. No suit, prosecution or other proceeding shall not lie
against any officer performing in good faith any functions
under this Act or purporting to be done in the implementation
of this Act. [s. 47]
50.–(1) [Repeals the Electricity Act.]
(2) A subsidiary legislation or notice made pursuant to the
provisions of the repealed Act which was in force immediately
before the commencement of this Act, so far as it is not
inconsistent with the provisions of this Act, shall remain in
force until they are revoked.

y
before the commencement of this Act, so far as it is not
inconsistent with the provisions of this Act, shall remain in
force until they are revoked.

(3) Upon repeal of the Electricity Act, the following matters
shall continue to have effect as if they were made pursuant to
this Act-
(a) provisions of the Electricity Act which require supply
of electricity to continue to be given;
(b) any tariffs fixed pursuant to the provisions of the
Electricity Act;
(c) any applications in process and anything done before
this Act in relation to an application for a licence;
(d) any meter of a pattern which was approved pursuant to
the provisions of the Electricity Act;
(e) any land compulsorily acquired or otherwise in the
process of transfer pursuance to the provisions of the
Electricity Act; and
(f) a right of entry into any premises permitted pursuant
to the provisions of the Electricity Act. (4) A person who-
(a) is in possession of a licence or permit issued prior
to the enactment of the Energy and Water Utilities
Regulatory Athority Act shall comply with this Act
and all rules issued by the Authority pursuant thereto
within one year of the coming into force of this Act;
(b) is in possession of a licence to undertake distribution
activities issued prior to the enactment of the Energy
Indemnity
Repeal and
savings
Act No. 32 of 1931
Cap.

ion of a licence to undertake distribution
activities issued prior to the enactment of the Energy
Indemnity
Repeal and
savings
Act No. 32 of 1931
Cap.

414
Cap. 414

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.572
THE ELECTRICITY ACT [CAP. 131 R.E. 2023]
and Water Utilities Regulatory Athority Act shall
comply with the provisions of subsection (3) of
section 23 within three months of the coming into
force of this Act.
[s. 48]
51. A person convicted of an offence under this Act for which
no specific penalty is expressly provided, on conviction, shall
be liable to a fine of not less than three million shillings but not
exceeding ten million shillings, and in the case of a continuing
offence, to a fine not exceeding one million shillings for every
day during which the offence continues after conviction.
[s. 48A]
52. Except as otherwise provided in this Act, licences, permits,
consents, orders and contract documents granted or made
prior to the enactment of this Act in relation to the provision
of electricity services shall remain in force for the terms set
forth in such instruments or for such longer interim period as
the Authority may grant.
[s. 49]
General penalty
Act No.
3 of 2020 s. 27
Transitional
provisions