ELECTRICITY ACT

to regulate the generation, transmission, distribution and supply of electricity so as to enhance the security and reliability of the supply of electricity; provide for the sale and purchase of electricity within and outside the Republic; facilitate the achievement of the efficient, effective, sustainable development and operation of electricity infrastructure; provide the roles and responsibilities of various participants in the electricity sector; facilitate adequate levels of investment in the electricity sector; provide for a multi-year tariff framework; promote transparency in the identification and allocation of risks, costs and revenues within and between participants in the electricity sector; ensure the protection and safety of consumers of electricity and the public; repeal and replace the Electricity Act, 1995; and provide for matters connected with, or incidental to, the foregoing.

[21st February, 2020]

Act 11 of 2019,

SI 15 of 2020.

PART I
PRELIMINARY PROVISIONS

1. Short title

This Act may be cited as the Electricity Act.

2. Interpretation

In this Act, unless the context otherwise requires—

"ancillary service" means a service comprising reactive power, black start, operating reserve and a service required to control power system stability;

"base tariff" means a reference to a retail tariff determined by the Energy Regulation Board at the beginning of the multi-year tariff period;

"base year" means the latest historical full financial year prior to a retail tariff application;

"bilateral tariff" means the tariff at which electricity is sold under a power purchase agreement or a power supply agreement, excluding a retail tariff;

"black start" means the process of restoring a generating station or part of the electricity network following a total system collapse without the use of an external transmission system;

"Board" means the Board of the Energy Regulation Board established under the Energy Regulation Act, 2019;

"charge" includes the price, fee, rate, surcharge, levy, fine, penalty, deposit, connection charge or fee, use of system charge or any other charge made for the provision of a service or product that a licensee provides in the course of carrying out the licensed activity;

"chief" has the meaning assigned to the word in the Constitution;

"common carrier" means a transmission or distribution line declared as a common carrier by the Minister under section 15;

"consumer" means a person to whom electricity is sold under a contract of supply or a person who has applied and paid for the supply of electricity;

"contract of supply" means a contract between a licensee and a consumer for the supply of electricity to that consumer;

"cost reflective" includes—

(a) in relation to a tariff, the recovery of the allowable costs of each regulated and licensed activity within the electricity generation, transmission, distribution and supply value chain;

(b) charges reflecting any combination of the fixed, variable or marginal costs of the generation, network maintenance or retail and operational segments of the power system and interest and depreciation costs which enable the asset to be replaced or refurbished as necessary and for the assets to be expanded as demand for electricity grows; and

(c) the revenue received from electricity tariffs covering the full and efficient operation and maintenance costs including staff, overhead, primary energy and the full capital costs and an allowable rate of return;

"distribution" means the transportation of electricity on a distribution system for delivery to a consumer;

"distribution line" means a cable, overhead or underground line for the distribution of an electric voltage whose upper limit is sixty-six kilovolts and includes—

(a) a transformer, switch gear or other works necessary for, and used in connection with, the cable, overhead or underground line; and

(b) a building or a part of the building required to accommodate the transformer, switch gear or other works;

"distribution network service provider" means a licensee responsible for operating, maintaining and developing a distribution system in an area and, where applicable, the distribution system’s interconnection with other systems;

"distribution system" means a portion of an electricity network which delivers electric energy from transformation points on the transmission network of bulk power system to an enterprise at a voltage whose upper limit is sixty-six kilovolts;

"electric line" means a line that is used for transmitting electricity for any purpose, and includes—

(a) any support for a line, structure, tower or pole by or from which a line may be supported, carried or suspended;

(b) an apparatus connected to a line for the purpose of carrying electricity; and

(c) a wire, cable, tube or pipe which surrounds or supports, is surrounded and supported by, is installed in close proximity to, or is supported, carried or suspended in association with any line;

"electric plant" means a plant, equipment, apparatus, appliance or other part used for, or connected with, the generation, transmission, distribution or supply of electricity, but does not include—

(a) an electric line;

(b) a meter used for ascertaining the quantity of electricity supplied to any premises; or

"electric power" means the rate, per unit time, at which electrical energy is transferred by an electric circuit;

"electricity" means electrical energy produced by physical sources of energy such as hydropower, wind power, solar power, petroleum, coal, bio-mass, nuclear energy or any other source;

"electricity network" means the electricity lines in a transmission or distribution network, including the support and protection elements, sub-stations and other electric power equipment that are interconnected;

"electricity project" means a project that includes development or construction of generation, transmission and distribution infrastructure for the supply of electricity for commercial purposes as prescribed;

"emergency" means an occurrence where an unplanned loss of generation or transmission facilities, or an occurrence beyond a licensee’s control that impairs or affects the licensee’s ability to supply that licensee’s system demand;

"Energy Regulation Board" means the Energy Regulation Board established under the Energy Regulation Act, 2019;

"enterprise" means a company that—

(a) generates, transmits, distributes or supplies electricity;

(b) generates, transmits, distributes or supplies electricity solely or mainly in the interest of a group of associated companies, whether or not any excess electricity is supplied to any consumer who is not part of the group;

(d) trades in electricity as an intermediary, as prescribed;

"environmental impact assessment" has the meaning assigned to the words in the Environmental Management Act, 2011;

"equipment" means machinery, appliances, meters, fittings, apparatus and other equipment owned by, or under the control of, a licensee and used for conducting the licensed activity;

"generating station" means a site for generating electricity including a building, plant, machinery or accessories used for the purpose of generating electricity;

"generate" means to produce electricity and cognate expressions shall be construed accordingly;

"grid code" means a set of rules and responsibilities for the development, maintenance and operation of an efficient, co-ordinated and economical system for the transmission and distribution of electricity that promotes the security and efficiency of the whole power system as prescribed;

"hybrid system" means a generating station or electric plant which makes use of more than one energy source;

"inspector" means a person appointed as an inspector under the Energy Regulation Act, 2019;

"installation" means the whole of a plant or equipment designed for the supply or use of electricity;

"installed capacity" means the maximum aggregate capacity of a plant that generates, transmits or distributes electricity;

"interconnected power system" means a number of transmission and distribution lines, and includes associated power generation systems that are linked together for the purpose of transmitting or distributing electricity;

"land" has the meaning assigned to the word in the Lands Act;

"licence" means a licence issued by the Energy Regulation Board under the Energy Regulation Act, 2019 or an authorisation issued under any other written law;

"licensed activity" means an activity that is authorised under a licence;

"licensee" means a holder of a licence authorising the holder to undertake an activity under this Act;

"local authority" has the meaning assigned to the words in the Constitution;

"multi-year tariff framework" means a framework that regulates a licensee’s tariff over a period of time;

"non-retail consumer" means a consumer other than a retail consumer;

"open access" means the availability of spare transmission or distribution capacity to any qualifying participant on non-discriminatory terms and conditions;

"premises" includes—

(a) a building, tent, container, vehicle, conveyance, vessel or other structure, permanent or otherwise, with the land on which the building, tent or structure is situated and any adjoining land used in connection with the building, tent, container, vehicle, conveyance, vessel or structure; and

(b) a street, open space or place of public resort;

"power purchase agreement" means a contract entered into between or among enterprises for the sale and purchase of electricity;

"power supply agreement" means a contract entered into between an enterprise and a non-retail consumer for the sale of electricity;

"power system" means a network of electrical components and allied infrastructure used to generate, transmit, distribute or supply electric power;

"producer" means a person who generates electricity;

"rated generating capacity" in relation to an installed generating plant, means the designed maximum continuous output of the plant;

"relevant authority" includes the ministries responsible for water and sanitation, land, local government and any other relevant authority as the Minister may prescribe;

"renewable energy resources" means non-fossil sources of energy capable of use for the generation of electricity including wind, solar, hydro, bio-mass and geothermal;

"retail consumer" means a consumer whose consumption is in accordance with the prescribed limits and categories;

"retail tariff" means the tariff at which the electric energy is sold to different customers but excludes bilateral tariffs in a power purchase agreement and power supply agreements;

"road" has the meaning assigned to the word in the Public Roads Act, 2002;

"spot market" means an electricity market where a system for effecting bids for short term trade of electricity is carried out in the absence of a power purchase agreement or power supply agreement;

"state land" has the meaning assigned to the words in the Lands Act;

"street" has the meaning assigned to the word in the Local Government Act, 2019;

"supplier" means a person who supplies electricity;

"sustainability programme" means an annual or a five-year plan of a licensee, which sets out the manner in which the licensee is to achieve and sustain the customer service and engineering, financial and technical standards necessary for a regular, efficient, co-ordinated and economical supply of electricity under its licence;

"system operator" means an entity responsible for the short term reliability of an interconnected power system, which is in charge of controlling and operating the transmission system and dispatching generation or balancing the supply and demand in real time in a non-discriminatory manner;

"system user" means a person supplying or being supplied electricity by a transmission or distribution system;

"tariff" has the meaning assigned to the word in the Energy Regulation Act, 2019;

"transmission" means the transportation of electricity from the source of electricity production on a transmission system for delivery to distribution network service providers and final consumers;

"transmission line" means a cable, overhead or underground line for the transmission of electricity at a voltage whose range is above sixty-six kilovolts together with a transformer, switch gear or other works necessary to, and used in connection with, the cable, overhead or underground line, and any building or part of the building required to accommodate the transformer, switch gear and other works;

"transmission network service provider" means a person referred to in section 11;

"transmission system" means part of the interconnected power system which supplies power in bulk from a generating station to a distribution system and other consumers and includes—

(a) transmission lines and sub-station equipment on the interconnected power system where the nominal voltage is above sixty-six kilovolts; and

(b) associated equipment at a transmission network service provider substation belonging to a transmission network service provider.

3. Functions of Energy Regulation Board in relation to electricity

In addition to the functions under the Energy Regulation Act, the functions of the Energy Regulation Board under this Act are to—

(a) secure a regular, efficient, co-ordinated and economical supply of electricity and facilitate universal access to electricity supply;

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