The Electricity Supply Industry RegulatoryBill has been introduced to Cabinet by the Minister of Minerals and Energy. Cabinet has approved that the Bill be released for public comments.
The Billwill be re-submitted toCabinet for approvalandprogressionto Parliament after comments have been analysed and consolidated.
To establish a national regulatory framework for the electricity supply industry, to provide forthe National Electricity Regulatory Authority as the custodian and enforcer of the national regulatory framework, to provide for the issuingof licences relatingto the generation, transmission, distribution and retail of electricity, and the provision of certain services in connection therewith, and for matters connected therewith.
4 Powers, functions and duties.
The purpose of this Act is to establish a framework within which the electricity establishes the National Electricity Regulatory Authority as the custodian and enforcer of this regulatory framework to monitor and ensurethat the interests met, having regard to the efficiency, effectiveness and long-term sustainability of the electricity supply industry.
"transmitter" means a person transmitting electricity; and 'Ithis Act" includes any Government notices, rules, codes of practices or directives.
CHAPTER 2 2 TheNationalElectricityRegulatorreferred to in theElectricityAct, 1987 (Act No. 41 of 1987), continues to exist underthisAct, but shall be called the National Electricity Regulatory Authority.
operate bank accounts, invest monies and make.
exercise any power or perform any duty or function assigned to it under any other law; and exercise any power or function and perform any duty incidental to the exercise of its powers or functions or the performance of its duties under this Act..
take of policies, and cognisance regional objectives developments; and international competitiveness.
The Authority of five members appointedbytheMinister. TheMinistershallalsoappointthese members as the members of Gas Regulator and Petroleum Pipelines Regulator.
If the chairpersonis foranyreasonunable to perform his or her duties, the other members must choose another person from among themselves to act as chairperson until the chairperson can resume his or her duties or another chairpersonis appointed by the Minister.
A member of theRegulatoryAuthorityholdsofficefora period of four years.
MembersoftheRegulatoryAuthoritymust be paid fortheirservices such remuneration and allowances as the Minister may determine with the concurrence of the Minister of Finance.
there is aprobability that a materialconflict of interest may arise between the interests of the member as member of theboardand that members' personal, professional or business interests.
Beforeappointingmembersto the Regulatory Authority, the MinistermustbynoticeintheGazette, call for nominations from members of the public.
All membersshalldiscloseto the Ministertheirpersonal, professional and business interests on appointment to the Regulatory Authority and notify Minister when these change.
The Minister may terminate the appointment of a member of the RegulatoryAuthorityifsuchmemberbehaves in mannercontrary to the provisions of section 10.
Thechairpersonshall, upon awrittenrequest of the chief executive officer ortwo other members, convene a special meetingto be held within two weeks after the date of receipt of such request.
Thedecision of the majority of the members presentat a meeting constitutesa decision of the Regulatory Authority.
In the event of an equality of votesonanymatterthe person presiding at the meeting has a casting vote in addition to his or her deliberative vote.
the time when the decision was taken if the restof the members present at the meeting and entitled to sit as members at the meeting constituted a quorum and the decision was taken by a majority of those members present and entitled to vote.
9 act in a manner that is requiredandexpectedfromthe holder of a public office.
explainedclearly as to its factual and legal bases and the reasons therefore.
therefore must be available to the public.
12.(1) The Regulatory Authority must appoint a chief executive officer for the Regulatory Authority.
Regulatory Authority; and control the appointed under subsection(3).
Section 10 appliestoanymember of the personnel ofthe Regulatory Authority, with the changes required by the context.
charges for mediation, arbitrationandother services rendered; and donations contributions from persons, or received institutions, governments or administration and approved by the Minister.
The Authority functions perform accordancewiththePublicFinanceManagementAct,1999(Act No. 1 OF 1999).
The regulatory authority sha!!, in addition to any repot required in terms of the Public Finance Management Act,1999 (Act No.1 of 1999),within three monthsof the end of a financial year, submit an annual report to the Minister for submission to Parliament shall informationlicences that include on considered, granted, refused, amended or withdrawn?
Aftersubmittal of theannualreport to the Minister in terms of subsection (1) the regulatory authority shall cause a summary of the report to be publishedin the Gazette and appropriate newspapers.
16.(1) Theboard of theregulatoryauthority maydelegateanypoweror function assigned to it under this Act to the chief executive officer, orto an employee of the regulatory authority.
Thechiefexecutiveofficermay, subject to theprovisions of other legislation that may impacton such decision, with the approval of the board of the regulatory authority delegate any power or function assigned to him or her under this Act, or delegated to him or her under subsection (l),to an employeeof the regulatory authority.
The regulatory authority may appoint committees consisting of perform such functions or exercise such powersof the board as the board may perform or exercise under this Act, and may at any time dissolve or reconstitute such a committee.
The chairman of any such committee, must be a member of the board of the regulatory authority.
Theboardmayappoint committeesconsistingof as manymembersof the board, employees of the regulatory authority and other persons as may be deemednecessary to advise the board of the regulatory authority in general or on a particular matter.
19(1). The board may establish customer or consumer forums consisting of as many members of the board, employees of the regulatory authority and categories of customers as may be deemed necessary to advise the regulatory authority on matters affecting customers or consumers ingeneraloracategory or categories of customerorconsumerin particular.
perform any otherprescribedservicerelated to the generation, transmission distribution and sale of electricity..
Theregulatoryauthoritymay, on such conditionsas it may determine and include in an existing licence, allow an existing licensee to deviate fromtherequirements to obtain andhold a licencereferred to in section 19(l)(a).
Adeterminationmadeundersection (1) shallcomeintooperation on the date prescribed, and from that date onwards the activity ceases to be a licensed activity and becomes a registered activity, if the Minister so determines.
Anypersonwhohas to register with the regulatory authority mustdo so in the formand in accordance with theprescribed procedure, and an application for registration shall be accompanied by the prescribed registration fee.
30 No. 23909 GAZETTE, for the activities set out in a certificateof registration to be provided to such person: Provided that it may refuse to register such person or activity -if the application is contrary to the objectives of this Act.
No requestforfurtherinformation, notification or discussionsreferred to in subsection (2) shall in any way be construed as conferring any right or expectation on an applicant.
Minister prescribe by notice in the Gazefie.
and operation of generation, transmission, distribution and retailing activities; and compliance black empowerment criteria.
may request such additional information as may be necessary to consider the application properly.
(b)afterreceivingtheresponse of the applicant as contemplated in section 24(b).
the compliance with any rule or.
the undertaking of customer education programmes; and any other prescribed condition.
out in such licence without the prior approval of the regulatory authority or without complying with the requirements set out in such licence.
permitthecross-subsidy of prices to certainclasses of consumers in accordance with their licences.
Theprocedure to be followed in varying, suspending, removing or adding any licence conditionsis as prescribed.
Revocation of licence on.
the licensed facility or activity is not economically justifiable; or.
anotherperson is willingandable to assume therightsand obligations of the licenseeconcerned in accordancewiththe requirements and objectives of this Act, and a new licence is issued to such person.
Licensees must give the Regulatory Authority at least 12 months notice in writing of their intention to cease their activities.
The form and procedure to be followed in revokingalicence under subsection (1) is as prescribed.
32.(1)If a licensee contravenes or fails to comply witha condition of a licence or any provision of this Act the Regulatory Authority may serve a notice on such licensee in which the licensee is directedto comply with the condition or the provisionof the Act within a reasonable period specified in the notice.
If a licenseefails to complywithanoticeContemplated in subsection (1) the Regulatory Authority may sit as a tribunal and, with due regard to section 10, decide on the matter and may imposea penalty of a fine not exceeding R2 000 000,OO perdayforeachdayonwhichthe contravention or failureto comply continues.
Anypersonadverselyaffectedby a decision of the tribunal contemplated in subsection (2) may bring such decision under appeal to the High Court.
The Minister maybynotice in the Gazette amend the amount referred to in subsection (2)(6)in order to counter the effect of inflation.
33.(1)The Regulatory Authority may by way of application on notice of motion apply to the High Court for an order suspending or revoking a licence if there exists any ground justifying such suspension or revocation, including but not limited to, the failure of the licenseeto carry out the construction, operation or trading activities for which the licencewas granted.
The before an is undercourt which made application subsection (1) may grant or refuse the application, and may make such order as to costs and maintaining the service of the licensee asmayitdeem fit.
34.(1) A condition relating to the period of validity of a licence may not be amendedand a licenseewhowish to continue carrying on or be involved in any activity referred to in that licence shall apply for a new licence when a licence lapses: Provided that the regulatory authority may, if it is of the opinion that the renewal does not materially affect the rights of any person, authorise such deviations from the procedure set out or referred to inthat sections asit may determine.
any other aspect set out in the licence or registration certificate of such licensee or registered person.
The regulatory authority shall not be obliged to act as arbitrator, but on deciding to act as arbitrator, its decision to do so becomes binding on any party concerned.
person so appointed is deemed to be an action by or decision of the regulatoryauthority.
The decision of the regulatory authority, includingadecision as to Costs, shall be final and bindingon the disputing partiesin the event of arbitration.
to the regulatory authority.
On receipt of areportundersubsection (I), theregulatory authority may institute a formal investigation.
the appointed paragraph and person under (a) the persons assisting him may summon witnesses and conduct the investigation in the prescribed manner.
sit as a tribunal as contemplated in section 29; or refer it to Attorney-General of the the area concerned for his or her consideration.
(b)requireanyperson to furnish to the regulatory authority such information, returns or other particulars as may be necessary for the proper applicationof this Act.
The regulatory authority may require that the accuracy of any information, return or particular furnished under subsection (1) be verified on oathor by way of solemn declaration.
A person authorised by the regulatory authority as contemplated in subsection (1) shall on request show his authorisation to any person requesting it.
No information obtained by the regulatory authority whichis of a non-generic, confidential, personal, commerciallysensitive or any person without the permission of the person to whom that court.
notice, rule or directive made or issued under this Act.
Anyagreement in contravention of subsection (1) shall be unenforceable between the parties in a court of law.
40 (1) In pursuit of theobjects of this Act, the Regulatory Authoritymay expropriateland, oranyright in, overor in respect of land on behalf of a licensee in accordance with section25 of the Constitution.
The procedure to be followed in giving effect to subsection (1) must be prescribed.
thelandoranyrightin, over or in respect of such land is reasonably required by a licensee for facilities which will enhance the Republic's electricity infrastructure.
and licensees; make guidelines and publish codes of conduct and practice, or make rules by notice in the Gazette..
and other the authority appropriate for serving the purposes of this Act.
(h)anyothermatter that may or has to be prescribed, determined or provided for in this Act.
any other matter that may or has to be prescribed, determined or provided for in this Act.
42.(1) Subject to the provisions of subsection (2) and (3),the laws specified in Schedule Iare hereby repealed or amended to the extent set out in the third column thereof.
Anythingdone in terms of the provisions of theElectricity Act, 1987, priortothecommencementofthisAct, andwhichmaybedonein terms of the provisions of this Act is deemed to have been done in terms of this Act.
Act, prior to such licences lapsing; and (c)conditionsimposed in terms of substitutinglicensesissued in under paragraph (b) shall not be more onerous in its application than that of the licence it replaces.
Act No. 41 of 1987 Act No.
The deletion of sections 2 to 10, 12 to 17, 20 to 22,27(1) and 28 to32.
The amendment of Schedule3 by the deletion of the item referring to the Electricity Act, 1987 (Act No. 41 of 1987).