Angola will allow private companies to start selling electricity in the country from next year, ending the monopoly held by the National Electricity Distribution Company (ENDE), announced the Minister of Energy and Water, João Baptista Borges.
The decision is driven by high operational costs and the rapid expansion of electricity networks in rural areas, the minister explained in comments to Lusa during a visit to a photovoltaic solar park.
The value chain of Angola’s electricity sector has four segments — generation, transmission, distribution and commercialisation — with a single concessionaire for distribution and sales: ENDE.
According to the minister, the public company is therefore required to operate in every locality, regardless of consumption levels, which means that costs can far exceed expected revenue, especially in rural regions.
João Baptista Borges said the goal is to concession local assets, allowing private operators to take on commercial and operational functions.
“What we do is hand over the distribution network assets, the metering and billing system, and they handle electricity sales, new connections, technical support, repairs, breakdowns, and so on,” he said. In return, companies pay a fee for the use of ENDE’s infrastructure.
Asked about the economic viability for private operators, given tariff limits and low household payment capacity, João Baptista Borges stressed that companies will not have to bear major upfront investment.
“They have no significant investment costs, because they receive the networks. Essentially, the investment already made is sized for the consumer base they will serve,” he said, adding that with reduced costs, “it becomes attractive.”
Electricity tariffs will remain uniform across the country, he assured, adding that any regional cost differences will be offset through cross-subsidisation.
The minister said the government is finalising the regulations needed to implement the new model.
As for the timeline, João Baptista Borges was clear: “This cannot go beyond next year, precisely because the growth of the infrastructure is creating increasing sustainability challenges.”
The process will be widely discussed before implementation. “We are setting up a Sector Reform Committee that will include all relevant stakeholders from local institutions, associations, ministries and individuals to discuss the model, and we will then implement it throughout next year,” he said.
The opening of electricity sales to private operators follows changes introduced to the General Electricity Law through Law No. 6/25 of 23 July, which provides the legal basis for electricity commercialisation to be carried out by private entities under licence and under supervision of the regulatory authority.
