Madagascar: Enactment of the new electricity law

The new legislative framework regulating the electricity sector in Madagascar, more modern and better adapted to the current situation, aims to improve the governance of the sector and to attract investment.

The electricity regulations in Madagascar were based upon a former law (Law n°98-032 dated 20 January 1999 which reformed the electricity sector), which has been revised by a new Electricity Code adopted towards the end of 2017 by the National Assembly.  It was enacted on 10 April 2018.  http://edbm.mg/wp-content/uploads/2017/12/Loi-n-2017-020_elec.pdf

At the same time, a law reforming the National Electricity Fund has been adopted.

Objective: improve access to electricity

In order to attain the objective of access to electricity for 70% of households by 2030, the new law puts in place tools that aim at improving governance and to reassure investors. 

The prerogatives of the Electricity Regulation Office are consolidated, as well as the missions of the Agency for the Development of Rural Electrification, emphasis being placed upon the electrification of the countryside, which is somewhat behind.

Small projects benefit from a simplified regime, with a simple declaration for hydroelectric installations that produce less than 500 kW, wind farms that are less than 250 kW and solar installations that are less than 150 kW. 

Emphasis of renewable energy

In conformity with the New Energy Policy, which favours renewable energy, the new Electricity Code includes a certain number of incentive mesures in favour of green energy.  A new notion, that of the “green supplier”, relates to those suppliers of electricity produced from renewable energy, and accords them a favourable tax status.

The route is mapped out

Planification tools and the regulation of tariffs are provided for, enabling the timely intervention of public bodies for the regulation of the electricity sector.

The activities of production, transportation and distribution of electricity benefit from three separate regimes: concession, authorization and declaration, defined in accordance with power thresholds.