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Electricity Regulation Act, 2006 (Act No. 4 of 2006)


Regulatory Rules for Power Purchase Cost Recovery

2. Types of Projects


2.1 New generation capacity developed by private producers to be covered by these include (but no limited to):
(a) small power projects (SPPs) with the minimum capacity of 1MW
(b) stand-alone IPPs (greenfield and brownfield facilities); and
(c) domestic and cross-border projects’


2.2 The power generated from these projects will be sold by a licensee under its licence to generate and trade electricity. As a condition of licence, purchases from IPPs will be regulated and as such prudently incurred costs will be recovered as part of regulated revenue base;