Legal regime

Some tips concerning the granting of legal regimes for the exercise of activities in the electricity sector in Cameroon.

The 2011 law governing the electricity sector in Cameroon in its Article 11 provides that. The exercise of activities in the electricity sector must be subject to the acquisition of any of the following regimes : Concession, License, Authorization, Declaration and Free scheme.

CONCESSION REGIMELICENSE REGIMEAUTHORISATION REGIMEDECLARATION REGIMEFREE SCHEMEPROCESSING FEES FOR APPLICATIONS FILESGET A TITLE

Concession according to the above mentioned law governingthe electricity sector in Cameroon Defined as management signed exclusively between the State and operatorlowing thelatter to use clearly-defined State Land for the Purpose of generating. Transmitting and distributing electricity on the basis of particular speciacations.

FallingundertheregimeofConcessionare:

  • The generation and transmission of electricity for industrial purpose
  • Water storage on public land for electricity production;
  • Generation of hydroelectric power in particular on public land;
  • Operation of the transmission network;
  • Electricity transmission;
  • Electricity distribution.

Concession agreements shall determinate the duration and condition of suspension, expiry and revision. Renewaland cancellation ofthe contractby the granting authority. As well as the settlement of disputes

License according is the 2011 Law governingthe electricity sector in Cameroon is de?ned as a contract or administrative title granted by a competent authority a quali?ed operator who has been selected as an independent operator selling extra high, high voltage and medium voltage electricity as well as import and exportactivities totally or partially intended for distributers or bulk users.

Licenses shall be awarded for:

  • the independent production of electricity
  • the sale of extra high, high and medium voltage electric power;
  • the important and export of electricity

Licenses to sell extra high, high and medium voltage electricity power.aswelle as those for the independent production, import and export of electricity shall be granted only to operators who fulfil the technical requirements and provide adequate financial guarantees to carry out their activities

Authorization is a legal instrument issued by the competent authority which allows the carrying out of an activity in the operator fulfills the conditions and obligations under this law and its implementing instruments

The following shall fall under the authorization schedule under conditions laid down by statutory instrument:

  • Private production installations of more than 1MW:
  • Setting up and operating electricity distribution installations with a view to directly or indirectly supplying power of not more than 100KW
  • Installation of private electricity lines along or across a highway or running horizontally at distances of less than 10 m from an existing electric, telephone or telephone or telegraph line situated in public property;
  • Within the context of rural electrification and the limits stipulated by the legal framework, the generation, especially of hydroelectric stations with a capacity of 5 MW or less, the supply and sale of electricity shall be by virtue of sample authorization of the Electricity Sector Regulatory Agency, No special requirements for tender notices or advertisement shall be compliance with the rules of safety and environmental protection.

The authorization can be granted only where there is no public electricity service due to the tack or shortage of electricity generation transmission and distribution means in the area concerned.

When the output of installations for personal production of electricity is more than 100KW and less than 1MW the owner of such installations shall be bound to make a declaration to the Electricity Sector Regulatory Board before operating the said installation

The following shall fall under the free schemes:

  • Installation of private electricity lines without restriction where the facilities are entirely located on private property. Provided such lines shall not run along or go across a highway, and that the wires shall at no point run horizontally at less than ten (10) meters from an existing electric, telephone or telegraph lines situated on public property
  • Installation of private electric lines must meet the required norms and standards.
  • The owner of such installations is bound to declareits existence for the purpose of statistics to the Electricity Sector Regulatory (ARSEL)

keeping to the provisions of Arrêté n°00000193/A/MINEE of 28th April 2014, the processing fees for application files according to the regime solicited.

  • For Concession application files : one hundred million (100.000.000) FCFA
  • For license application files : fifty millions (50.000.000) FCFA
  • For authorization application files : ranges from 1.000.000 FCFA to 5.000.000 FCFA
    • For auto producers superior to 5MW (* 2.500.000 FCFA
    • For auto producers superior to 5MW – 5.000.000 FCFA
    • Distributors: capacity inferior or equal to 100KW – 1.000.000 FCFA
  • For Declaration: twenty five thousand (25.000) FCFA
  • Free engine.

The  processing fee paid to the Electricity Sector Regulatory Agency (ARSEL), in the course of the treatment of the file, is non-refundable.