SEC Chairman confirmed Regulating Somaliland Energy Sector in Progress

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Chairman Somaliland Energy Commission (SEC) Eng. Ahmed Farah Adare has stated that the process of regulating the Somaliland Energy Sector is ongoing and soonest will be finalized.

Statements Eng Ahmed issued on 26th December, were as follows;

Established by Presidential Decree in July 2020, the Mandate of SEC is to establish a Regulatory Framework for the Energy Sector in Somaliland.

Sector regulation is crucial in building investor confidence and is appreciated worldwide as a mechanism through which integrity, credibility, and transparency of a well-managed sector of the economy can be evaluated. In working towards strengthening the image of Somaliland government SEC is the first sector regulator in the country. This is significant because energy is the ‘ignition’ for development of all sectors of the economy. All sectors require energy for operating their activities, diversify and expand in range. Worldwide, energy provision and regulation are an integral responsibility of government. For the economy to grow, the government must meet the ever-increasing demand for electricity peak load for the establishment of industries countrywide. Both the amount of electricity and regulation of the Energy sector are important in responding to the needs of numerous investors for all sectors of Somaliland economy.

In the two years since its inception under SUSIP project, SEC has achieved major milestones in efforts to develop a regulatory framework for the electricity sector in the Somaliland. Three fundamental regulatory instruments have been developed under SUSIP with invaluable technical support from Canadian legal experts CFCS facilitated by the invaluable financial support from International Finance Corporation (IFC) of the World Bank Group. The instruments developed include a Tariff Setting mechanism, Electricity Generation and Distribution Licenses and initiating registration of Electricity Technicians in Boroma on 22nd December 2022.

Tariff Setting agreed in consultation between SEC, MOEM and ESPs in July 2022 was a major achievement in the effort to check the sudden hike in the cost of electricity in Somaliland which that is currently one of the highest in the world. Secondly, drafting, public private consultative dialogues and 21st December 2022 validation of Electricity Generation and Distribution Licenses as a continuous consultative process between the Commission and Energy sector stakeholders including ESPs, Ministry of Energy and Minerals (MOEM)and civil society actors to provide guidelines for electricity service delivery. Thirdly, initiating a Register of Electrical Technicians in Somaliland takes stock of capacity development key specialist skills for the sector.

As SUSIP ends on 31st December 2022, the recently launched World Bank Group funded Somaliland Energy Sector Recovery Project (SESRP) will continue to strengthen the regulatory capacity of the Commission. In 2023, the Commission will focus on focusing developing and implementing wide regulatory instruments for energy legal, regulatory, economic and financial aspects.  Thus, SEC will continue delivering on its mandate to the people of Somaliland. Inshalah.

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