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


Electricity Regulations on New Generation Capacity, 2011

3. Objectives of the Regulations


The objectives of these Regulations are—

(a) to facilitate planning for the establishment of new generation capacity;
(b) the regulation of entry by a buyer and a seller into a power purchase agreement;

[Paragraph (b) substituted by regulation 4 of Notice No. R. 1366 of 2016]

(c) to set minimum standards or requirements for power purchase agreements;
(d) the facilitation of the full recovery by the buyer of all costs efficiently incurred by it under or in connection with a power purchase agreement including a reasonable return based on the risks assumed by the buyer thereunder and to ensure transparency and cost reflectivity in the determination of electricity tariffs; and
(e) the provision of a framework for implementation of an IPP procurement programme and the relevant agreements to be concluded.