Year	Policy Dimension	Key Features	Status: Tanzania	Remarks
1992	Independent Power producers	Independent power producers (IPPs) are private companies that participate in power generation for sale to end-users or SOUs. They are introduced as the quickest way to increase the installed capacity, private investment, and competition in the sector and unburden governments from funding the new power plants	ü In 1992 the national energy policy passed lifting TANESCO’s monopoly in power generation and distribution segments. ü In 1993 bids for IPPs tendered leading to the entry of IPTL-103 MW (2002 online) and Songas -189 MW (2004).	Introduced
1993	Commercialization	Commercialization entails observing the norms of the private sector of operating for profit, maximizing efficiency, moving to full-cost recovery, introducing cost-cutting measures, reducing staff, reducing or removing subsidies, and enforcing collections of electricity bills.	ü Initiated in 1993 under the World Bank VI Project where tariffs were modestly increased and prepaid meters introduced ü Accelerated during the Net Group Solutions, and in 2010-2013 when EPPs were procured. ü Officially promoted from 2006 when EWURA became operational.	Introduced
1995	Competitive markets	ü Competition is an ordering force that ensures efficient allocation of resources, promotes rivalry between suppliers, and eliminates excessive profit. ü It involves the provision of electric service by two or more rival entities in the same service area whereas the owners of monopoly infrastructure provide equal access to new entrants (competitors) on commercial terms similar to what would exist in a competitive market.	ü In 1995 the single buyer model was introduced where TANESCO enters PPAs with IPPs. Bilateral agreements as well exist where IPPs sell directly to the bulk-off taker. The commencement of IPTL power generation in the 2002 market. ü In 2016, the Regulations promoting competition and guaranteeing equal access to monopoly infrastructure were released. ü The first PPA was entered in 1995. IPTL became commercially operational in 2002. In 2016 the bilateral agreement between Dangote Group Industries and Jinan Diesel Engine Co. was Ltd was signed. Small Power Independent Distributors Producers such as Mwenga Power Services Limited and Andoya Hydro Electric Power Company Limited	Introduced
1997	Privatization	Private investors are allowed to invests in the sector previously under state monopoly. It includes the transfer of public property or business to a private entity through outright sale of assets, joint venture, or disposal of shares in the stock market; outsourcing operations to a private firm for a specific period (concessions agreement); involving the private sector in management (management and lease contracts); and constructing new projects that are either entirely private or a public-private partnership; deregulation of the sector.	ü 1997 TANESCO was specified for privatization though the decision was reversed in 2005 ü In 2001 the 112 MW power plant and Songo-Songo gas facilities were privatized to Songas ü In 2003, a concession was awarded to Artumas Group to supply power to Mtwara and Lindi Regions. ü Between 2002-2005 TANESCO was under the private management of NetGroup Solutions from South Africa.	Introduced
2001	Independent Regulation	Independent regulation involves separating the regulatory roles from the government bodies and granting the new organ the right and freedom to decide on regulatory matters without prior consent from the government.	ü Energy and Water Utilities Regulatory Authority (EWURA) to regulate electricity, waters and natural gas, and petroleum downstream segment.	Introduced
2002	Corporatization	ü Corporatization is transforming a utility company into an independent legal entity governed by the principles of corporate law such as greater operational autonomy, clear commercial objectives and performance targets, effective monitoring systems; and a high degree of financial independence and transparency. ü Separate utility from ministry, create a clear accounting framework and provide greater operational autonomy.	ü In 1931 the Electricity Ordinance established two quasi-private companies: DARESCO and TANESCO which were merged in 1964. ü In 1975 the government acquired EPLC’s shares in TANESCO. ü In 2002 the incumbent TANESCO was officially corporatized under the Companies Act of 2002 clarifying its mandates against the parent ministry.	Introduced
2005	Rural Energy Fund and Agency	ü Commercial and Non-commercial electrification expansion are separated from the commercial left under the utility mandates. ü The fund helps to speed up access to modern energy in rural areas where the private sector is unable or unwilling to invest due to economic and technical constraints.	ü In 2005 the legislation to form the Rural Energy Agency and Rural Energy Fund was passed to facilitate the electrification of the non-commercial segment passed. ü 2007 REA became operational	Introduced
2008	Liberalization Law	ü Involves legal mandate restructuring and permitting the private sector participation/ownership/imports in the sector. ü A good law normally commercializes the electrical service by encouraging cost-reflective tariffs, criminalizes power theft, and insulates the sector from political interventions.	ü In 2008 Electricity Act was enacted liberalizing the entire power supply chain including reform intentions but with some prohibitive clauses. ü Presently, there as private investors in the form IPPs, Small Power Producers (SPPs), Independent Power Distributors (IPD), and Self-generators (own use). ü In 2015 section 41(6) of the Electricity Act that prevented IPPs from selling electricity to end-users lifted.	Introduced
	Unbundling	Unbundling entails breaking up a vertically integrated state monopoly company into multiple power generation and distribution companies that trade each other competitively, raise capital from the capital markets and pay dividends and taxes to governments. Vertical and/or horizontal unbundling, create independent transmission company, separate profitable parts for sale to private investors.	ü Plans for unbundling TANESCO remains a goal since the 1990s	Not introduced