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

Chapter III : Electricity Licences and Registration

15. Tariff principles


(1) A licence condition determined under section 14 relating to the setting or approval of prices, charges and tariffs and the regulation of revenues—

[Words preceding Section 15(1)(a) substituted by section 8 of Act No. 28 of 2007]

(a) must enable an efficient licensee to recover the full cost of its licensed activities, including a reasonable margin or return;
(b) must provide for or prescribe incentives for continued improvement of the technical and economic efficiency with which services are to be provided;
(c) must give end users proper information regarding the costs that their consumption imposes on the licensee's business;
(d) must avoid undue discrimination between customer categories; and
(e) may permit the cross-subsidy of tariffs to certain classes of customers.


(2) A licensee may not charge a customer any other tariff and make use of provisions in agreements other than that determined or approved by the Regulator as part of its licensing conditions.


(3) Notwithstanding subsection (2), the Regulator may, in prescribed circumstances, approve a deviation from set or approved tariffs.


[Section 15, previously section 16,  renumbered by section 16(b) of Act No. 28 of 2007]