SRI LANKA ELECTRICITY ACT

Arrangement of Sections

1. Short title.

CHAPTER I

Preliminary

2. Administration of the Act.

2A. Delegation of powers, duties and functions of the Commission.

CHAPTER II

Functions of the Commission

3. Functions of the Commission.

4. Objectives.

5. General policy guidelines to be issued by the Minister.

6. Electrical inspectors.

CHAPTER III

PART I

Licensing

7. Prohibition on unlicensed supply of electricity.

8. Participating in a bidding process for the generation of electricity.

9. Eligibility to apply for a licence under section 11.

9A. Statutory exemptions.

10. Exemption granted on application.

11. Applications for licences.

12. Procedure prior to grant of licences.

13. Grant of licences.

14. Form of licence.

15. General conditions of licences.

16. Special conditions of generation licences.

17. Special conditions of transmission licences.

18. Special conditions of distribution licences.

19. Assignment of licences.

20. Revocation of licences.

21. Application for exemption.

22. Revocation and withdrawal of exemptions.

PART II

Powers and Duties of Licensees

23. Provisions of this Part to be in addition to conditions.

24. Duties of transmission licensees.

25. Duties of distribution licensees.

26. Exemption from duty to connect and supply.

27. Power to recover expenditure.

28. Power to require security.

29. Additional terms.

30. Tariffs.

31. Provisions of Schedules to apply to licences.

PART III

Modification and Enforcement of Licences

32. Modification by agreement.

33. Modification without agreement.

34. Enforcement orders.

35. Procedure for making enforcement orders.

36. Effect of enforcement order.

37. Offences.

38. Power of Commission to vest management and control of undertaking of licensee in another authority or person.

39. The resolution of disputes.

CHAPTER IV

Consumer Protection

40. Standard of performance for supply of electricity.

41. Standards of overall performance and efficient use of electricity.

42. Information with respect to levels of performance.

CHAPTER V

New Generation Plant and Overhead Lines

43. Provision of new generation plant or the extension of any existing plant.

44. Consent required for overhead and underground electric lines.

45. High voltage lines.

CHAPTER VI

Finance

46. Annual Levy.

47. Moneys to be credited to the Fund of the Commission.

CHAPTER VII

Offences and Regulations

48. General Penalty.

49. Extraction of electricity to be an offence.

50. Improper use of electricity to be an offence.

51. Offences by bodies of person.

52. Acquisition of property for Power Generation project.

53. Rules.

54. Regulations.

55. Removal of difficulties.

56. Purposes for which Regulations are made.

CHAPTER VIII

General

57. Minister to ensure compliance.

58. Register.

59. Returns and information.

60. Consumer Affairs Authority Act not to apply.

CHAPTER IX

Interpretation

61. Interpretation.

62. Sinhala text to prevail in case of inconsistency.

CHAPTER X

Repeals and Transitional Provisions

63. Repeals and transitional provisions.

64. Provisions of this Act and regulations to prevail over regulations made under section 56 of the Ceylon Electricity Board Act.

65. Ceylon Electricity Board to be issued with provisional licence and licences.

66. Amendment to the Ceylon Electricity Board Act, No. 17 of 1969.

SCHEDULE

20 of 2009,

31 of 2013.

AN ACT to provide for the regulations of the generation, transmission, distribution, supply and use of electricity in Sri Lanka; to repeal the Electricity Reform Act, No. 28 of 2002 and the Electricity Act; and for matters connected therewith or incidental thereto.

[Date of Commencement: 8th April, 2009]

1. Short title.

This Act may be cited as the Sri Lanka Electricity Act.

CHAPTER I

Preliminary

2. Administration of the Act.

(1) The Public Utilities Commission of Sri Lanka (hereinafter referred to as the "Commission”) established by the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002, shall exercise, perform and discharge all the powers, functions and duties as are conferred on or assigned to the Commission by or under this Act.

[S 2(1) subs by s 2(1) of Act 31 of 2013.].

(2) The exercise, performance and discharge by the Commission of the powers, duties, and functions conferred on or assigned to it under this Act, shall be in addition and not in derogation to the exercise, performance and discharge of the powers, duties and functions that the Commission is given or conferred with by the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002.

2A. Delegation of powers, duties and functions of the Commission.

(1) —

(a) The Commisssion may delegate any of its powers, duties and functions conferred on or assigned to it by or under this Act, to any officer of the Commission for a specific purpose and period as may be determined by the Commission.

(b) The Commission may delegate any power conferred on it by items 3, 4, 5 and 6 of Schedule 1 of the Act to any Divisional Secretary.

(2) The officer to whom any power, duty or function is delegated under subsection (1) shall exercise, perform or discharge such power, duty or function, subject to such directions as may be given to such officer by the Commission.

(3) The Commission shall notwithstanding any delegation made under subsection (1), have the authority to exercise, perform or discharge any power, duty or any function so delegated.

[S 2A ins by s 3 of Act 31 of 2013.]

CHAPTER II

Functions of the Commission

3. Functions of the Commission.

(1) The functions of the Commission shall be to act as the economic, technical and safety regulator for the electricity industry in Sri Lanka, and—

(a) to advise the Government on all matters concerning the generation, transmission, distribution, supply and use of electricity in Sri Lanka;

(b) to exercise licensing, regulatory and inspection functions, as the case may be, in respect of matters provided for in this Act, to regulate the implementation codes of practice and other requirements imposed by or under this Act relating to the generation, transmission, distribution, supply and use of electricity in Sri Lanka;

(c) to approve such technical and operational codes and standards as are required from time to time to be developed by licensees;

(d) to regulate tariffs and other charges levied by licensees and other electricity undertakings, in order to ensure that the most economical and efficient service possible is provided to consumers;

(e) after consultation with transmission and distribution licensees, to publish a statement setting out the rights and obligations of consumers arising under sections 23 to 29 and Schedules I and II to this Act;

(f) to collect and record information relating to the generation, transmission, distribution, supply and use of electricity in Sri Lanka;

(g) to set and enforce technical and other standards relating to the safety, quality, continuity and reliability of electricity supply services and metering services;

(h) to promote the efficient use and conservation of electricity;

(i) to prepare, within three months of the coming into force of this Act and to revise, from time to time thereafter, a regulatory manual containing a code of good practice relating to the functions assigned to the Commission by or under this Act;

(j) to pursue any matter relating to the functions conferred on or assigned to the Commission by or under this Act within such period and in such manner as may be specified in the regulatory manual;

(k) subject to the provisions of this Act, to consult to the extent the Commission considers it appropriate, any person or group of persons who may be affected or are likely to be affected by the decisions of the Commission, and;

(l) to undertake all incidental or ancillary measures that it considers appropriate for the effective discharge of its functions.

(2) The Commission in the discharge of its licensing functions entrusted to it by paragraph (b) of subsection (1), shall ensure that a coordinated, efficient and economical system of electricity supply is provided for and maintained throughout Sri Lanka, at all times.

4. Objectives.

(1) The Commission shall discharge the functions assigned to it by or under this Act in a manner which it considers is best calculated—

(a) to protect the interests of consumers in relation to the supply of electricity, by promoting efficiency, economy and safety by persons engaged in, or in commercial activities connected with, the generation, transmission, distribution, supply and use of electricity;

(b) to secure that all demands for electricity in Sri Lanka are met;

(c) to secure that licensees acting efficiently will be able to finance the carrying on of the activities authorised or required by their licences;

(d) to promote the efficient use of electricity supplied to premises;

(e) to protect the public from dangers arising from the generation, transmission, distribution, supply or use of electricity;

(f) to give effect to any guidance on environmental objectives notified to the Commission by the Central Environmental Authority or where applicable, a Provincial Council; and

(g) to promote competition, where appropriate, (hereinafter referred to as the "objectives”).

(2) In this section "the interests of consumers” includes the interests of existing and future consumers, with regard to—

(a) the prices charged and other terms of supply of electricity;

(b) the availability and continuity of supply of electricity;

(c) the quality of electricity supply services provided; and

(d) the exercise of any rights conferred under this Act to enter their premises.

5. General policy guidelines to be issued by the Minister.

(1) The Minister shall have the power to formulate general policy guidelines in respect of the electricity industry.

(2) The Minister shall in formulating the general policy guidelines referred to in subsection (1), take into consideration, among other matters, the following—

(a) the requirements for electricity in Sri Lanka in order to attain national targets for sustainable economic growth, including requirements in respect of—

(i) different geographical areas, including rural areas; and

(ii) different socio-economic groups;

(b) fuel diversity and the preferred fuel for new electricity generations;

(c) the priorities and objectives in meeting the needs set out in paragraph (a);

(d) pricing policy in respect of the supply of electricity to facilitate the sustainable economic growth;

(e) the measures being taken by the Government with respect to these matters.

(3) The Minister shall forward the general policy guidelines formulated under subsection (1) to the Cabinet of Ministers for its approval. All amendments sought to be made to the guidelines approved by the Cabinet of Ministers, shall also be required to be approved by the Cabinet of Ministers.

6. Electrical inspectors.

(1) The Commission may appoint electrical inspectors for the purposes of this Act.

(2) It shall be the duty of an electrical inspector appointed under subsection (1)—

(a) to inspect and test electric lines and electrical plants belonging to persons authorised by a licence or exempted from the requirement of obtaining a licence, to generate, transmit, distribute or supply electricity;

(b) to examine the generation, transmission, distribution or supply of electricity by such persons;

(c) to inspect and test if and when required by any consumer, any such lines and plant on the consumer's premises, for the purpose of ascertaining whether any requirement imposed by this Act in respect of those lines or plant or the supply of electricity through or by them, has been complied with; and

(d) to carry out such other functions as may be imposed on him or her by regulations or the Commission as it so determines.

(3) Regulations may be made—

(a) prescribing the manner in which, and the times at which, any duties imposed on electrical inspectors are to be performed;

(b) requiring persons authorised by a licence or exempted from the requirement of obtaining a licence, to generate, transmit, distribute or supply electricity—

(i) to furnish electrical inspectors with records or other information; and

(ii) to allow such inspectors access to premises and to the use of electrical plant and other facilities;

(c) prescribing the amount of the fees (if any) which are payable to such inspectors and the persons by whom they are payable;

(d) prescribing a procedure for the audit of the activities of electrical inspectors;

(e) prescribing the circumstances in which a licensee may be relieved from its obligation to supply electricity; and

(f) setting out the procedure for the resolution of disputes between an electrical inspector and a consumer or a licensee.

(4) Any fees received by the electrical inspector under this section, shall be credited to the Fund of the Commission

CHAPTER III

PART I

Licensing

7. Prohibition on unlicensed supply of electricity.

(1) A person shall not—

(a) generate electricity;

(b) transmit electricity; or

(c) distribute and supply or distribute or supply electricity for the purpose of giving a supply to any premises or enabling a supply to be given to any premises,

unless he is authorised to do so by a licence granted under this Act or is exempted from obtaining a licence under section 10.

(2) A person who contravenes the provisions of subsection (1) shall be guilty of an offence under this Act and shall be liable on conviction after summary trial before a Magistrate, to a fine not less than one hundred thousand rupees and not exceeding ten million rupees and where the offence is continued to be committed after such conviction, be liable to an additional fine equal to the amount imposed as the fine on conviction, in respect of each day during which the offence is continued to be so committed.

(3) Where a person is prosecuted for an offence under subsection (2), the court shall in addition to the punishment imposed under that subsection, further order the person convicted to refrain with immediate effect from carrying on the activity which he is prohibited from carrying on under subsection (1), until he has obtained a licence for the same as required by that subsection.

(4) No proceedings shall be instituted in respect of an offence under this section except with the written sanction of the Commission.

8. Participating in a bidding process for the generation of electricity.

Any person may participate in a bidding process for the generation of electricity provided that where such person is a company incorporated under the Companies Act, No. 7 of 2007, such person shall be required to conform to the requirement specified in paragraph (c) of subsection (1) of section 9, in order to be eligible to obtain a generation licence under subsection (1) of that section.

[S 8 am by s 4 of Act 31 of 2013.]

9. Eligibility to apply for a licence under section 11.

(1) No person other than any one of the following shall be eligible to apply for the issue of a generation licence, to generate electricity over and above the generation capacity of 25MW—

(a) the Ceylon Electricity Board, established by the Ceylon Electricity Board Act, No. 17 of 1969;

(a) a local authority;

(c) a company incorporated under the Companies Act, No. 7 of 2007, in which the government, a public corporation, a company in which the government holds more than fifty per centum of the shares or a subsidiary of such a company, holds such number of shares as may be determined by the Secretary to the Treasury, with the concurrence of the Minister in charge of the subject of Finance.

(1A) Notwithstanding the provisions of paragraph (c) of subsection (1), the eligibility requirement specified in that paragraph shall not be applicable to a company which, on the date of the coming into force of this Act, is operating a plant to generate electricity over and above the generation capacity of 25MW, having a valid power Purchase Agreement executed with the Ceylon Electricity Board and which is in operation on the date preceding the date of the coming into force of this Act:

Provided that the non applicability of the eligibility requirements in respect of a company as provided for by this subsection, shall be in operation only during the period of duration of the Power Purchase Agreement referred to in that subsection.

[S 9(1A) ins by s 5(1) of Act 31 of 2013.]

(2) No person other than the Ceylon Electricity Board, established by the Ceylon Electricity Board Act, No. 17 of 1969 shall be eligible to apply for the issue of a transmission licence.

(3) No persons other than any one of the following shall be eligible to apply for the issue of a distribution licence—

(a) the Ceylon Electricity Board, established by the Ceylon Electricity Board Act, No. 17 of 1969;

(b) a local authority;

(c) a company incorporated under the Companies Act, No. 7 of 2007, in which the Government or a public corporation holds more than fifty per centum of its shares; or

[S 9(3)(c) am by s 5(2) of Act 31 of 2013.]

(d) a society registered under the Co-operative Societies Law, No. 5 of 1972.

9A. Statutory exemptions.

(1) The Commission may, having regard to—

(a) the process adopted for generation of electricity;

(b) the quantity of electricity proposed to be generated;

(c) the number of persons among whom the electricity generated is to be distributed;

(d) the location of the plant to be used for the generation of electricity; and

(e) any other criteria that the Commission may consider appropriate, by Order published in the Gazette, exempt any person or category of persons from the requirement of obtaining a licence for the generation or distribution of electricity, where such person engages in community based electricity generating project on a non-commercial basis.

(2) The period for which such exemption is granted and the terms and conditions which such exemption shall be subject to, shall be as specified in such Order.

(3) The Commission may withdraw an exemption granted to any person or category of persons under subsection (1), where such person or category of persons­—

(a) have acted in violation of any term or condition subject to which the exemption was granted; or

(b) commences to generate or distribute electricity on a commercial basis.

(4) Where an exemption granted under this section is withdrawn, the Commission shall by notice published in such manner as the Commission considers appropriate, disclose the names of the person or category of persons whose exemption is being withdrawn and notify the persons affected by such withdrawal, of the same.

[S 9A ins by s 6 of Act 31 of 2013.]

10. Exemption granted on application.

[Am by s 7(4) of Act 31 of 2013.]

(1) The Commission may on application made for that purpose, exempt any person or category of persons from the requirement of obtaining a licence for generating or distributing electricity, having regard to the manner in which or the quantity of electricity likely to be generated or distributed by such person or category of persons.

[S 10(1) am by s 7(1) of Act 31 of 2013.]

(2) The Commission shall issue to every person or category of persons to whom an exemption under subsection (1) is granted, a Certificate of Exemption which shall be subject to such terms and conditions and be effective for such period, as shall be specified therein.

[S 10(2) subs by s 7(2) of Act 31 of 2013.]

(3) Within one week of the issue under subsection (2) of a Certificate of Exemption to any person or category of persons, it shall be the duty of the Commission to publish by a notice in the Gazette, the names of all such persons or category of persons, as the case may be, to whom a Certificate of Exemption was issued:

Provided that, if no Notice as required above is published in the Gazette within the period stipulated, the Certificate of Exemption granted under subsection (2) shall be null and void and of no force or avail in law.

[S 10(3) ins by s 7(3) of Act 31 of 2013.]

11. Applications for licences.

Subject to the provisions of section 9, an application for a licence to generate, transmit or distribute electricity or for an extension of any such licence, shall be made in writing to the Commission and shall be in such form, and shall be accompanied by such information and documents and such fee, as may be prescribed by regulation.

12. Procedure prior to grant of licences.

(1) Upon receipt of an application under section 11 and where the Commission intends to grant the licence or extension applied for, the Commission shall—

(a) publish a notice of its intention to do so in such manner as the Commission considers appropriate, for bringing it to the attention of persons who are likely to be affected by the licence or extension; and

(b) send a copy of the notice to the Minister for his or her information.

(2) Every notice under subsection (1) shall—

(a) state that the Commission proposes to grant the licence or extension to the persons and for the purposes, set out in the notice;

(b) state the reasons for proposing the grant of such licence or extension; and

(c) specify the period (not being less than twenty eight days from the date of publication of the notice) within which representations may be made to the Commission with respect to the proposal.

13. Grant of licences.

(1) The Commission may—

(a) after considering any representations made to it in response to the notice published under section 12;

(b) after satisfying itself that the applicant has the financial and technical capability for carrying out the activities authorised by the licence or extension; and

(c) with the concurrence of the Minister—

(i) grant a licence authorising any person—

(a) to generate electricity from an identified generation plant (a licence granted under this sub-paragraph is hereinafter referred to as a "generation licence”);

(b) to transmit electricity (and procure and sell electricity in bulk) in the Authorised Area specified in the licence (a licence granted under this sub-paragraph is hereinafter referred to as a "transmission licence”); or

(c) to distribute and supply or distribute or supply electricity for the purpose of giving a supply to any premises or enabling a supply to be so given in the Authorised Area specified in the licence (a licence granted under this sub-paragraph is hereinafter referred to as a "distribution licence”); or

(ii) extend for the period specified in the extension, a generation, transmission, or distribution licence granted under this Act.

(2) Forthwith upon the grant of a licence or an extension under this section, the Commission shall cause to be published in the Gazette, a Notification giving details of the licence or extension granted, including the persons to whom and the purposes for which it was granted, the term of such licence or extension, as the case may be, and the conditions subject to which it was granted.

(3) A person shall not be granted both a transmission licence and—

(a) a generation licence; or

(b) distribution licence.

(4) A person shall not be granted both a generation licence and a distribution licence.

14. Form of licence.

(1) Every generation, transmission or distribution licence or extension thereof granted under this Act, shall—

(a) be in writing;

(b) unless previously revoked or surrendered in accordance with the terms of the licence or extension, continue in force for the period specified in the licence or extension; and

(c) not be capable of being surrendered without the consent of the Commission.

(2) As soon as practicable after granting a generation, transmission or distribution licence or of an extension of such licence, the Commission shall send a copy thereof—

(a) to the Minister for his or her information; and

(b) to any other licensee who may be likely to be affected by the grant or extension, as the case may be, of such licence.

15. General conditions of licences.

(1) A generation, transmission or distribution licence may include—

(a) such conditions (whether or not relating to the activities authorised by the licence) as the Commission considers necessary having regard to the functions assigned to it by section 3 of this Act;

(b) conditions requiring payment to the Commission upon the grant of the licence or periodic payments during the term of the licence, of such amount or amounts as may be determined by the Commission, by or under the licence;.

(c) in addition to the provisions in sections 31 and 32 of this Act, conditions with provision for such conditions—

(i) to have effect or cease to have effect at such times and in such circumstances as may be specified in the licence; or

(ii) to be modified in such manner as may be specified in the licence at such times, and in such circumstances, as may be so specified;

(d) conditions relating to the prohibition of abuse of monopoly position or other anti-competitive behaviour; and

(e) conditions relating to the optimum utilisation of funds and assets of the licensee, in order to ensure that a most economical and efficient service is provided to its customers.

(2) Conditions included in a generation, transmission or distribution licence may include, requirements—

(a) compelling the licensee to adhere to any decision, order, direction or determination given by the Commission as to such matters as are specified in the licence;

(b) compelling the licensee to comply with all requirements of the licence;

(c) compelling the licensee to refer certain matters for determination by the Commission;

(d) compelling the licensee to refer for approval by the Commission certain things to be done under the licence or certain contracts or agreements made in pursuance of the licence;

(e) restricting the ownership by the licensee or any of its affiliates, of specified business interests; and

(f) compelling the licensee to enter into agreements with other persons.

(3) Any sum received by the Commission by virtue of any condition of a licence shall be paid into the Fund of the Commission.

16. Special conditions of generation licences.

Without prejudice to the generality of section 15, a licence issued to a generation licensee shall include conditions—

(a) prescribing how it shall discharge the functions assigned to the licensee under this Act in so far as such condition is not inconsistent with any provision of this Act:

(b) requiring the licensee to sell electricity generated by the licensee exclusively and only to transmission licensees;

(c) requiring the licensee to adhere to all environmental laws for the time being in force;

(d) requiring the licensee to take all possible steps to protect persons, plants and equipment from injury and damage;

(e) requiring the licensee to implement and maintain such technical or operational codes in relation to the generation system as the Commission considers necessary or expedient: and

(f) requiring it to develop and maintain electric lines, cables, plants and fuel handling plants and associated equipment.

17. Special conditions of transmission licences.

Without prejudice to the generality of section 15, a transmission licence issued to a licensee shall include conditions—

(a) prescribing how the licensee shall discharge the functions assigned to the licensee under this Act in so far as such condition is not inconsistent with any provision of this Act;

(b) requiring the licensee to forecast future demand, to plan the development of the licensee's transmission system and to procure the development of new generation plant to meet reasonable forecast demand;

(c) requiring the licensee to purchase electricity and other goods and services on the most economically advantageous terms and in a most transparent manner;

(d) relating to the establishment of tariffs the licensee may charge for the bulk sales of electricity and tariffs for the use of the transmission system by generation licensees and distribution licensees;

(e) requiring the licensee to maintain separate accounts in respect of different parts of the licensee's business and prohibiting cross subsidy between those parts;

(f) requiring the licensee to implement and maintain such technical or operational codes in relation to the transmission system (including a grid code) as the Commission considers necessary or expedient;

(g) requiring the licensee to develop and maintain electric lines or electrical plant or both;

(h) requiring the licensee to develop and operate a transparent generation dispatch model; and

(i) requiring the licensee to publish for the benefit of the public, all relevant information relating to its generation procurement,

and may include conditions allowing the transmission licensee to sell electricity in bulk to certain consumers who are connected to the transmission licensee's transmission system and are identified in the transmission licence, subject to such further conditions as are included in that licence relating to such bulk sales.

18. Special conditions of distribution licences.

Without prejudice to the generality of section 15, a distribution licence issued to a licensee may include, conditions—

(a) prescribing how the licensee shall discharge the functions assigned to the licensee by or under this Act in so far as such conditions are not inconsistent with any provision of this Act;

(b) requiring the licensee to publish and conform to codes of practice in relation to consumer issues, containing such provisions as the Commission considers necessary for the protection of consumers, including provision relating to—

(i) the maximum time period required for providing a new connection of electricity or for the restoration of supply after being informed of a fault, as the case may be;

(ii) the payment of compensation for any loss incurred by a customer, due to the failure of the licensee to comply with any requirement referred to in sub-paragraph (i);

(iii) the payment of bills by consumers;

(iv) the disconnection of supplies to consumers;

(v) the provision of services to the elderly and disabled;

(vi) the efficient use of electricity by consumers;

(vii) the handling of consumer complaints;

(viii) the monitoring of compliance by the licensee, with maximum charges for the resale of electricity set by the Commission;

(ix) the providing of services to geographical areas and prospective, hitherto consumers not being served with electricity; and

(x) providing life-line tariffs to disadvantaged groups of consumers.

(bb) requiring the licensee, where such licensee seeks to distribute electricity to owners of condominium parcels in any Condominium Property or Semi Condominium Property, to enter into an agreement with the management corporation of such Condominium Property or the Semi Condominium Property, as the case may be, established under the Apartment Ownership Law, No. 11 of 1973, for the supply of electricity to such owners, authorizing such management corporation to recover service charges and monthly charges from all such owners for the consumption of electricity;

[S 18(bb) ins by s 8 of Act 31 of 2013.]

(c) requiring the licensee to implement and maintain such technical or operational codes in relation to the electricity distribution network as the Commission considers necessary or expedient; and

(d) requiring the licensee to develop and maintain electric lines or electrical plant or both.

19. Assignment of licences.

(1) A licence shall be capable of being assigned either in whole or part if it includes a condition authorizing such assignment.

[S 19(1) subs by s 9(1) of Act 31 of 2013.]

(2) A licence shall not be capable of being assigned except with the consent of the Commission and of the Minister.

(3) In deciding whether to give its consent under subsection (2), the Commission shall apply the same criteria as it would apply if it were deciding whether to grant a corresponding licence or part of a corresponding licence to the assignee.

(3A) The Minister shall, where he is satisfied that the Commission had complied with the requirements imposed by subsection (3) and that such purported assignment does not contravene the provisions of subsection (6) of this section, grant his consent for such assignment.

[S 19(3A) ins by s 9(2) of Act 31 of 2013.]

(4) A consent under subsection (3) may be given subject to the assignee agreeing to—

(a) such modification of the conditions of the licence or the imposition of such further conditions as the Commission and the Minister consider necessary, for the purpose of protecting the interests of consumers; and

(b) such incidental or consequential modification of conditions as the Commission and the Minister consider necessary.

(5) A licence may include conditions authorising assignment, subject to compliance by the assignee of certain specified conditions.

(6) An assignment or purported assignment of a licence shall be void—

(a) if the licence is not capable of assignment;

(b) if the assignment or purported assignment is in breach of a condition of the licence; or

(c) if there has been before the assignment or purported assignment, a contravention of a condition subject to which consent was given under subsection (2).

(7) The Minister shall in exercising his powers under subsections (2) and (4) of this section, act in accordance with such criteria as shall be prescribed for each such purpose.

20. Revocation of licences.

(1) The Commission may after considering any representation made to it in response to a notice published under subsection (2) and with the concurrence of the Minister, by Order published in the Gazette, revoke a generation, transmission or distribution licence, in accordance with the terms as to revocation contained in such licence.

(2) Before revoking any licence under subsection (1), the Commission shall by notice published in the Gazette and by such other means as it considers appropriate for bringing it to the attention of persons likely to be affected by the revocation, state that it proposes to revoke the licence specified in the notice, and the reasons for proposing to do so and specify a period within which representations may be made to it against such revocation.

21. Application for exemption.

(1) Every application for an exemption under section 10, may be made in writing to the Commission in such form as may be prescribed and shall be accompanied by such information, documents and fees as may be prescribed by regulation.

(2) The provisions of subsection (1) and (2) of section 12 shall, mutatis mutandis, apply to and in relation to an application made under subsection (1).

(3) The Commission shall consider any representation made to it in response to a notice published by it in pursuance of subsection (2), before granting an exemption under section 10.

22. Revocation and withdrawal of exemptions.

(1) The Commission may after considering any representation made to it in response to a notice published under subsection (2) and with the concurrence of the Minister, by Order published in the Gazette—

(a) revoke an exemption granted to a person or a category of persons under sections 9A and 10; or

(b) withdraw an exemption granted to a person out of any category of persons to whom an exemption was granted under sections 9A and 10,

in accordance with any provision of the Order by which the exemption was granted or if it appears to the Commission inappropriate that the exemption should continue.

[S 22(1) am by s 10(1) of Act 31 of 2013.]

(2) Before revoking or withdrawing an exemption under subsection (1), the Commission shall by notice published in such manner as the Commission considers appropriate to bring it to the attention of the persons affected, state that it proposes to revoke or withdraw the exemption specified in the notice, the reasons for doing so and specify a period within which representations may be made to the Commission against such proposed revocation or withdrawal.

(3) The Commission shall by notice published in the Gazette, publish the names of all persons or category of persons whose exemption is revoked under paragraph (a) or the name of any person out of any category of persons whose exemption withdrawn under paragraph (b), of subsection (1) of this section.

[S 22(3) ins by s 10(2) of Act 31 of 2013.]

PART II

Powers and Duties of Licensees

23. Provisions of this Part to be in addition to conditions.

The provisions of this Part shall be in addition to and not in derogation of, the conditions of a generation, transmission or distribution licence.

24. Duties of transmission licensees.

(1) A transmission licensee shall—

(a) develop and maintain an efficient, coordinated, reliable and economical transmission system;

(b) procure and sell electricity in bulk to distribution licensees so as to ensure a secure, reliable and economical supply of electricity to consumers; and

(c) ensure that there is sufficient capacity from generation plant to meet reasonable forecast demand for electricity.

(2) Sections 6, 25, 26, 27, 28, 29, 40, 41, 42, 54 and 56 and Schedules I, II and III to this Act shall mutatis mutandis, apply to bulk sales of electricity by a transmission licensee, as they apply to the supply of electricity by a distribution licensee.

25. Duties of distribution licensees.

(1) A distribution licensee shall on any request by the owner or occupier of any premises within the Authorised Area of the licensee—

(a) connect, supply and maintain the supply of electricity to those premises; and

(b) so far as may be necessary for that purpose, provide electric lines or electrical plant or both,

subject to the provisions of this Part, any regulations made under this Part or under section 54, and the Electricity Supply Code (as set out in Schedule II to this Act).

(2) A distribution licensee shall avoid any undue preference or undue discrimination in the connection of any premises to any electricity distribution system operated by the licensee or in the terms on which the licensee makes connections or supplies electricity.

(3) The owner or occupier of any premises within the Authorised Area of a distribution licensee, which—

(a) are situated within fifty meters from any distribution line of the licensee; or

(b) could be connected to any such line by an electric line supplied and laid by the owner or occupier of those premises,

may make a request for a supply under subsection (1) to such distribution licensee .

(4) A supply of electricity to any premises shall be on the basis of a standard tariff agreement and a distribution licensee shall inform all consumers within the Authorised Area of the distribution licence (whether existing consumers or those persons requesting a supply) of the requirements set out in this Part and the distribution licence, which have to be satisfied by a consumer in order to obtain a supply of electricity.

(5) Where any person requires such a supply of electricity as is referred to in subsection (1), he or she shall request for a supply from and shall inform the distribution licensee of—

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