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

Chapter III : Electricity Licences and Registration

14. Conditions of licence


(1) The Regulator may make any licence subject to conditions relating to—
(a) the establishment of and compliance with directives to govern relations between a licensee and its or end users, including the establishment of or end user forums;
(b) the furnishing of information, documents and details that the Regulator may require for the purposes of this Act;
(c) the period of validity of the licence in accordance with section 20;

[Section 14(1)(c) substituted by section 7 of Act No. 28 of 2007]

(d) the setting and approval of prices, charges, rates and tariffs charged by licensees;
(e) the methodology to be used in the determination of rates and tariffs which must he imposed by licensees;
(f) the format of and contents of agreements entered into by licensees;
(g) the regulation of the revenues of licensees;
(i) the setting, approving and meeting of performance improvement targets, including the monitoring thereof through certificates of performance;
(j) the quality of electricity supply and service;
(k) the cession, transfer or encumbrance of licences, including the compulsory transfer of a licence to another person under certain conditions. and terms and conditions relating thereto;
(l) the right to operate generation, transmission or distribution facilities, to import or export electricity, to trade or to perform prescribed activities relating thereto, including exclusive rights to do so, and conditions attached to or limiting such rights;
(m) the duty or obligation to trade, or to generate, transmit or distribute, electricity, and conditions attached to such duties or obligations;
(n) the termination of electricity supply to customers and end users under certain circumstances, the duty to reconnect without undue discrimination, and conditions relating thereto;
(o) the area of electricity supply to which a licensee is entitled or bound;
(p) the classes of customers and end users to whom electricity may or must be supplied;
(q) the persons from whom and to whom electricity must or may be bought or sold;
(r) the types of energy sources from which electricity must or may be generated, bought or sold;
(s) compliance with health, safety and environmental standards and requirements;
(t) compliance with any regulation, rule or code made under this Act;
(u) compliance with energy efficiency standards and requirements, including demand-side management;
(w) the undertaking of customer or end user education programmes;
(x) the need to maintain facilities in a fully operational condition;
(y) the period within which licensed facilities must become operational; and
(z) any other condition prescribed by the Regulator.


(2) The Regulator may, as part of a licence condition imposed under subsection (1), prohibit a licensee from performing or force a licensee to perform any act set out in such licence.


[Section 14, previously section 13,  renumbered by section 16(b) of Act No. 28 of 2007]