Energy Act, 2012 (No. 11 of 2012)

3. Energy policy Transfer of 99.(1) The Board established under the repealed Assets Seychelles Energy Commission Act, 20 I0 may vest in or PART II - COMMISSION transfer to the Commission immediately before the coming Division 1- Establishment of the Commission into operation of this Act-

4. Establishment of the Seychelles Energy Commission (a) movable and immovable properties vested in

5. Objects of the Commission the Seychelles Energy Commission

6. Functions of the Commission constituted under Act 20 I0;

7. Powers of the Commission (b) assets, rights, interests, privileges, liabilities 8. Independence of the Commission and obligations of the Seychelles Energy Commission constituted under Act 20 I O. Division II - Board of the Commission

9. Establishment and composition of the Seychelles Energy Board (2) Where a question arises as to whether a particular movable or immovable property, asset, right, interest, 10. Termination of office ' II. Functions of the Board privilege, liability or obligation has been transferred to or vested in the Commission under subsection (I), a certificate 12. Meeting and procedures of the Board under the hand of the Minister shall be conclusive evidence 13. Co-opted person that the movable or immovable property, asset, right, interest, 14. Committees privilege, liability or obligation were or were not so transferred 15. Secretary or vested. ' 16. Appointment of the Chief Executive Officer

17. Staff of Commission I certify that this is a correct' copy of the Bill which was Division III - Funds of Commission passed by the National Assembly on 12th December, 20 12. '

18. Transfer of Funds

19. Funds of the Commission

20. Financial Year

21. Estimates

22. Accounts and Audit Azarel Ernesta

23. Annual Report . Clerk to the National Assembly

24. Funds for energy efficiency and renewable energy 78 Supplement to Official Gazette [31st December 201;2] [31st December 2012] Supplement to OfficiolGazette 131 PART III -LICENCES AND PERMITS repealed Seychelles Energy Commission Act, Division I -Provisions related to permit 2010 which were' validly done, taken or grante~under. an)' wr.tten laws or under and

25. Application for registration certificate p~uant.to th,eJ;'epealedAct shall continue to

26. Application for permit have effect in accordance with the terms _or

27. PUC to apply for permit Until aJllended,~led or withdrawn in

28. Suspension or revocation of permit accordance with the written law; Division II - Provisions related to licence (c) all agreements, deeds, bonds or arrangements

29. Licenses which fall within the scope of the objects and

30. Application for licence functions of the Commission,to which "the

31. Decision of the Board Seyc~enes Energy' Commis,sion is party,a'

32. Factors to be considered in an application for a licence subsisting immediately before the date of

33. Powers of the Board in relation to licenses coming into operation of this Act,' shall

34. Suspension or revocation of licence continue in foreeon and after that date, and shall be enforceable by or against the Division III - Provisions related to licence and permit Commission as if the Commission had been a party to such deeds, bond, agreements or

35. Expiration of licence arrangements;

36. Register

37. Notification to the Minister (d) all debts, obligations and liabilities incurred,

38. Restrictions on licensee or permit holder all contracts entered into and all matters

39. Prohibited conduct by licensee or permit holder. engaged to be done by or for the Government

40. Separate account by licensee immediately before such "day for Or in

41. Inspections by the Commission or authorised persons connection with' the 'purposes of the

42. Regulations relating to licenses and permits Seyc'heltesEnergyCommission' as constituted under Act 2t) 10 shall be incurred PART IV - INDEPENDENT POWER PRODUCERS by the Commission and the Commission shall have all powers necessary to take possession

43. Electricity generation plant of, recover and deal ..with such asset, and

44. Tendering for electricity generation plant discharge such liabilities;

45. Generation capacity required as matter of national interest (e) all suits and other legal proceedings pending PART V - ELECTRICITY RELATED ACTIVITIES or which could have been iristituted by or against Government immediately before such Generation, Transmission, Distribution and Supply day for any matter in relation to the

46. Additional conditions of licenses and permits Seychelles Energy Commission as

47. Construction of electricity generation plant constituted under Act 20 I 0, shall be (k) the setting of standards relating to health, 48. Sale of surplus electricity safety, security and environment telated to 49. Authorise transmission network electricity operations and activities; 50. Transmission of electricity

51. System operator (I) tariffs; 52. Distribution of electricity (m) standards of quality of service and supply; 53. Third party network access

54. Expansion of distribution and transmission network (n) requirements relating to service obligations; 55. General obligations of licensee

56. Inspection and supervision fee (0) system operations; 57. Abandonment (p) requirements relating to the network; PART VI - RENEWABLE ENERGY (q} safety, security and technical conditions of 58. Renewable energy sources access; 59. Power purchase agreement.

60. Information and consumers' education on renewable energy PARTXV-REPEAL, SAVINGSAND TRANSITIONAL PART VII - ENERGY EFFICIENCY Repeal 97.(1) The Seychelles Energy Commission Act 2010 is 61. Energy efficiency strategy hereby repealed. 62. Energy efficiency and energy conservation standards

63. Guidelines on labeling (2) Regulations and direction issued and notifications 64. Information, consumer education, and training programmes made under the repealed Act shall continue in effect until they 65. Voluntary agreements and cooperation programmes are repealed or amended under the provisions of this Act. 66. Measures related to energy efficiency Savings and 98. Upon the commencement of this Act- PART VIII - CLEAN DEVELOPMENT MECHANISM Transitional (a) any acts done or commenced by or under the 67. The Designated National Authority authority of the repealed Seychelles Energy 68. Functions of the Designated National Authority Commission Act, 2010 prior to the date of commencement of this Act, and where such PART IX - TARIFFS aND CHARGES act is within the powers of the Commission, 69. Tariffs shall be carried on and completed by or under the authority of the Commission; PART X - ACCESS FOR ELECTRICAL FACILITIES (b) all acts done, decisions taken, licences, or 70. Access to property authorisations granted by the Minister, Chief 71. Electrical facilities of licensee Executive Officer, officers or employees of 72. EasementJwayleaves the Seychelles Energy Commission under the 73. Enclosures ~o Supplement to UDiciat Gazette lj 1St uecemoer ..W 11.J PART XI - CONSUMER RIGHTS AND PROTECTIONS PART XlV ~MISCELLANEOUS

74. Duty of supplier and the Public Utilities Corporation to consumer '~94. AU me91~er~an4 ..,~ie~loy~~~:'~f.the C~mmission Public servants

75. Payment and suspension of service sp.all be deemed to be employed m the public service for the under Penal Code

76. Suspension or disconnection notice purpose ofsections 91 to 960fthePenalGode.

77. Consumer protection standards ,

7S. Procedures for dealing with complaints 95. The Chairperson, Deputy Chairperson, members of Protection of

79. Performance standards the Board, secretary of th~ ~parp, ..Chief'Bxecutive Officer and acts done in good faith SO. Obligation of electricity consumers other staff of the Commission shatI'not'be' criminally or civilly S1. Unforeseen events liable in respect of an act done 9tpmi~siQnill good faith in the exercise of a power and the performance of a function under PART XII- ~ISPUTE RESOLUTION this Act. ", 'H" '

82. Dispute settlement between licensees, electricity market participants

96.(1) The Minister may make regulations for carrying Regulations and the Public Utilities Corporation into effect the purposes and provisions of this Act.

83. Appeal to the Investment Appeal Panel , (2) .,.witpq~t R~~judj~etq tb,e"geq~a}ilY, 8f ~J.l\?stcfipJ,l PART XIII - OFFENCES (1), regulations made under subsection (1) may provide for-

84. Constructs and/or operates without permit/licence (a) any 'matter which in terms of' this' Act is

85. Operating electricity market activity without a licence required or permitted to be prescribed;

86. Breach of conditions of licence

87. Fraudulently obtains electricity related activity (b) any manner and form to be prescribed;

8S. Violation of prescribed tariffs

89. False and misleading statements (c) fees andcharges, fines or penalties payable;

90. Obstructing an inspector

91. Fails to give access to transmission and distribution network (d) conditions and requirements oflicence;

92. Fails to give written warnings (e) annual amount of electricity that an auto-

93. Destroying or tampering of documents producer, auto-producers' group or a co- PART XIV - MISCELLANEOUS generator may sell to the transmission operator;

94. Public servants under the Penal Code (t) rights, duties and obligations of consumers;

95. Protection of acts done in good faith

96. Regulations (g) operation and management of Grid Code; (h) electrical installations; PART XV - REPEAL, SAVINGS AND TRANSITIONAL

97. Repeal (i) transmission and distribution of electricity;

98. Savings and transitional

99. Transfer of Assets G) procedures for authorising the establishment of new generation plants; Supptement to Offtcta! Gazette PIst Decemoer LULlJ L.J1 S1: uecemoer .lIJ i z] oupptement to Ulltc.:tW«ruzeue Ol (d) knowingly give false evidence or information before the Commission; (e) wilfully fails to answer questions put to him or her by the Commission; commits an offence and on conviction shall be liable to a fine not exceeding SCR25,000. Obstructing 90. Any person who- ENERGY ACT, 2012 •.• inspector (Act 11 0/2012) (a) obstructs an inspector in the exercise of the powers or duties conferred or imposed upon I assent him or her underthis Act; (b) fails or refuses without reasonable cause to give information to an inspector or an • authorized person when required to do so in terms of section 41 ; J. A. Michel (c) discloses information obtained upon an President inspection or investigation other than information in the public domain for the 18th December, 2012 purposes of carrying out his or her duties, AN ACT to repeal and replace the Seychelles Energy commits an offence and on conviction shall be liable to a fine Commission Act 2010, for the establishment and not exceeding SCR 50,000. management of the Seychelles Energy Commission and Fails to give 91. A person who unreasonably fails to give access to Seychelles Energy Board, to make provisions for electricity access to its transmission or distribution network to third parties related activities, renewable energy sources, energy transmission and distribution commits an offence and on conviction shall be liable to a fine efficiency, Clean Development Mechanism, tariffs and network not exceeding SCR25,000. charges, consumer protection rights, issuance of licences and permits and for matters connected therewith and Fails to give 92. A person who fails to give written warning to a incidental thereto. written consumer in contra.vention of section 76 commits an offence warnings ENACTED by the President and the National Assembly. and is liable on conviction to a fine not exceeding SCR 25,000. PART I - PRELIMINARY Destroying or 93. A person destroying, tampering or concealing any tampering of document information book, accounts or other documents without 1. This Act may be cited as the Energy Act, 2012 and Short title reasonable excuse commits an offence and on conviction shall shall come into operation on such date as the Minister may, by be Iiable to a fine not exceeding SCR50,000. notice published inthe Gazette, appoint. 82 Supplement to Official Gazette [31st December 2012] [31st December 2U12J . supptement 10 UJJICIUl \.IU;!;(;;Ut;; 1•• 1 Interpretation 2. In this Act- .connected to any electrical facilities or power plant maintained or operated by a "authorise~'\n, , official permission giverrby licensee or permit holder; the C~~Pl.'~ .' itla~the construction of new electncl~fow. ." eneratlon, auto generation or (b) defrauds the licensee, the permit holder or co-generat~oP'~' transmission or distribution the Public Utilities Corporation of any fee networks;~' .' '. or charge properly payable for any electricity related activity; "auto-production" means the generation of electricity produced by an auto-producer or auto- (c) fraudulently installs or causes to be producer group intended mainly to meet the installed an access to any electrical facilities electricity needs of the auto producer or auto or plant of a licensee, permit holder or the producer group; Public Utilities Corporation, "auto-producer" means a licensee carrying out commits an offence and on conviction shall be liable to a fine electricity generation to meet its electricity not exceeding SCRI00,000 or to a term of imprisonment not requirements;'~: exceeding 1year or to both such fine and imprisonment. "auto-producer group" means a licensee carrying 88. A person who applies tariffs other than the Violation of out electricity generation to meet the electricity tariffs prescribed tariffs approved by its licence or permit commits an requirements ofits partnerships; offence and is liable on conviction to a fine not exceeding SCR50,OOO. "Board" means the Seychelles Energy Board established under section 9; 89. Aperson who- False and misleading statements "Clean Development Mechanism" means a (a) makes any statement which he or she knows it project-based flexible mechanism as defined in to be false or misleading or does not have Article 12 of Kyoto Protocol to the United Nations reasonable grounds to believe to be true Framework Convention on Climate Change; before the Commission or relevant authority; "co-generation" means the combined production of (b) knowingly fails or refuses to furnish any heat and electricity; documents or supply information in the manner and in the time prescribed or "co-generator" means a licensee carrying out co- furnishes a false or incomplete document or generation; supplies false or incomplete information; (c) knowingly fails to furnish any information or "Commission" means the Seychelles Energy answer questions put to him or her at a hearing Commission established under section 4; before the Commission; 126 Supplement to Official Gazette L31st December 2012 J LJ1st uecemoer zu r z J u•..• any decision of the Commission under section 82(1) may "consumer" means any person who acquires energy appeal to the Investment Appeal Panel in accordance with the services other than for the purpose of resale; provisions of the Seychelles InvestmentAct, 2010. "distribution" means the transport of electricity PART XIII - OFFENCES through the distribution network; Constructs and 84. Any person who- operates "distribution network" means medium and low without licence or permit (a) constructs without a permit or operates an voltage networks and associated equipment used electricity generator plant without a licence; fordistribution of electricity; or "distribution operator" means the licensee carrying (b) after the expiration of licence has not outthe activity of electricity distribution; dismantled and removed the plant, equipment and facilities used in the business and reinstated the land to its original state, "electrical facilities" means facilities for the installation, operation, maintenance and repairs of commits an offence and on conviction shall be liable to a fine electrical supply lines and other related matters; not exceeding SCR200,000 or a term of imprisonment not exceeding 2 years or both such fine and imprisonment. "electricity generation" means the production of electrical power from other form of energy and shall Operating 85. Any person who carries on any electricity related not be restricted to non renewable or renewable electricity markel activity activity without a licence or a separate licence for each sources of energy; without a electricity market activity commits an offence and on licence conviction shall be liable to a fine not exceeding SCRI 00,000 "electricity generation plant" means the electrical or a term of imprisonment not.exceeding 1 year or both such facility used for the generation ofelectricity; fine and imprisonment. "electricity market activity" means activities Breach of 86. Any person who breach any conditions of the conditions relating to generation, transmission, distribution of licence licence or permit under this Act commits an offence and on and supply of electricity; conviction shall be liable to a fine not exceeding SCR 100,000 or a term of imprisonment not exceeding 1 year or both such "electricity market participant" means- fine and imprisonment. (a) the Public Utilities Corporation; Fraudulently 87. Any person who- obtain electricity (b) an independent power producer; related activity (a) fraudulently obtains or makes use of any electricity related activity with intent to (c) an auto-producer and auto-producer group; avoid payment of any applicable tariff or charge by means of any apparatus or device (d) a co-generator; 84 ,Supplement to Officia/Gazette [31st December 2012] , l~J~tDe~Jhber2012] "S¥PPlemerd'to Official GflZette lZ5 , (e)atransmission operator; services made by c6'ttSWnetS';potentiafconsumers ernetwork u§eB.' \', ',,', ' (f) a distribution operator;

79. The ~inis~Ll1lay~r~onsultation with the Performance which qarry"on, electrjcity related activity in the Commission, preScl*rl>et,'starldaWs'm:',respect of quality, standards electricity market; reliability, efficiency, and econom~()! e!ectricity supplied py a licensee or the Public Utilities Corporation. ' "~lectricjtyrel~ted. activity" means the generation, ;" i ~ ...'::'" " • transmission.distribution or supply of electricity; 80. " CollSumers ,"of electPcityare obliged to use Obl~n~f electricity electricity pursuant to the conditions, manner and purpose consumers "Energy conservation" ,Jl1eansthe reduction in the prescribed by regulations. amountofen~ consumed in a process, system or by a person through economic elimination of 81. 'The Minister in consukatioAwRh the Commission Unforeseen energy waste and rational use; may take such measures'to,restoreafld maintain continuous events and uninterrupte6 service where there has been prolonged "energy effieiency" means the use of less energy interruption inthe electricity service as a result of- provided for the same service; (a) force majeure; "generation plant" means any plant or apparatus for the production of electricity; (b) any accident, sabotage or terrorist act affecting any operation; "Grid Code" means the technical specifications defining parameters for electricity generation, auto- (c) unavailability of capacity to provide any production or co-generation plant needs to meet to electricity services; or ensure proper functioning of the electricity (d) such other circumstances as may be deemed networks; by the Commission to be an emergency situation. "independent power producer" means a licensee carrying out the activity of electricity generation; PART xn - DISPUTE RESOLUTION "licence" means a licence issued under section 33; 82.(1) Any dispute between the licensees, electricity Dispute market participants including the Public Utilities Corporation settlement between "licensee" means a holder of a licence; shall initially be referred to the Commission for determination. licensees, eleWioity market oartlcloairts and "Minister" means the Minister responsible for (2) The Commission shall prescribe its proceedings for the Public' energy; determination in such manner as it thinks fit. Utilitles CorpOration "network user" means any person connected to the 83. Until the commencement of the Tribunal, which Appeal to the electricity transmission or distribution network; shall be given competence under this Act, a party aggrieved by Investment AppeB;lPanel 124 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 85 (a) consumer fails to pay any outstanding fee or "operator" means a licensed transmission operator charge for the service within the prescribed or a distribution operator; period; (b) consumer has obtained the supply of "permit" means a permit issued by the Town and electricity by misrepresentation or fraudulent Country Planning Authority; . means; "person" means- (c) service is likely to endanger the safety of persons or property, (a) any natural person; or (3) Where the cause for suspension or disconnection (b) any public body, company or association or has ceased to exist, the licensee shall restore the service within anybody of persons corporate or a reasonable time after payment of the prescribed fee. unincorporate; (4) A supplier or the Public Utilities Corporation shall, "power purchase agreement" means a contract in non-emergency situations, give advance notice or warnings between an independent power producer and buyer ofthe suspension of electricity services to consumers. for the purchase of electricity; Suspension 76. . Where suspension or disconnection is due to the "prescribed" means prescribed by regulations; or disconnection failure to pay the prescribed tariff, the Public Utilities notice Corporation or transmission and distribution operator shall "primary energy sources" means any form of give a notice of warning to the consumer or the network user energy which has not been subjected to any indicating the remedy for the irregularity prior to proceeding conversion or transformation process, and includes with the suspension or disconnection. . oil, petroleum products, gas, coal, uranium and renewable energy sources; Consumer 77.(1) The Commission may require a licensee or the protection standards Public Utilities Corporation to develop and submit to the "property" means public or private property; Commission, for its approval, procedures, standards quality of service applicable to matters relating to the quality of service "Public Utilities Corporation" means the and protection of the, interests of the consumers or network corporation established under section 3 of the users. Public Utilities Corporation Act; (2) Any standards and procedures approved by the "registration certificate" means certificate granted Commission under subsection (I) shall be published in a daily by the commission under section 25. newspaper or by a public notice and a notice in the gazette in such manner as the Commission may direct. "renewable energy sources" means energy Procedures 78. The Commission shall establish prescribed procedures generated from natural non-depleting sources, for dealing including wind, solar, biomass, geothermal, hydro, with for dealing with complaints related ·.0 electricity supply complaints 88 ,Supplement toJ)ifif:·ial.Gazette [31stDecem~ 2012] [31st December 2012] Supplemem to Official Gazette 121 anq,/~igb quality services related to the improvement of technical, economic electricity , sector; efficiency and quality of services; ",' (d) promote the use of renewable energy sources (t) tariff structure shall' define users' categories , in electricity generation and in any other and charges' reflecting' the:cost of service for sector; , each type of user in order to promote efficient price signals for all consumers; (e) promote energy efficiency in all sectors; (g) tariffs structure and model applicable to the (t) ensure that all undertakings operating in the Public Utilities Corporation and other system enerp sector shall comply with applicable operators shall provide incentives for environment protection standards and with efficiency in supply and be compatible with , general public safety conditions; the promotion of renewable energy sources. (g) ensuresufflcient supply of electricity is being (3) Notwithstanding subsection (2), the Commission provided by licensees and the Public Utilities' may, pursuant to the Energy Policy, set out a social tariff CoIporlltfon to consumers; defining the categories of consumers or specified areas (h) prOCeCttheinterests of consumers; 'I subsidized by other consumer categories, based on criteria set out, in a transparent and objective manner. (i) ensure that licensees provide adequate. I ~ices to consumers complying with the I I PART X . ACCESS FOR ELECTRICAL FACILITIES standards of quality of service; 70. A licensee may, upon issuance of a written notice to Access to G) ~~~o~e~fficient "co»s~rvation. use of energy and energy r I the owner or occupier of a property and to the Commission arid upon the approval of the Commission enter a property for property matters related to electrical facilities as prescribed by Functions of the

6.(1) The functions of the Commissionshallbeto- : I regulations, Commission 71. Any electrical supply lines, meters, fittings, works Electrical (a) coordinate development and strategy; facilities of or apparatus belonging to an operator and lawfully placed or Licensee (b) formulate the national energy plan and installed in Dr on any premises whether or not it isfixed to any implement the national energy policy; part of such premises shall- (c) promote energy efficiency and conservation (a) remain the property of, and may be removed of energy and the use of renewable energy; by the operator; (d) promote, research and develop the use of new (b) not be the subject of execution arising from techniques relating to extraction, production, any process of law or legal proceedings in transmission, distribution, supply and use of insolvency or liquidation against the owner or energy; occupier of such premises. 120 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 89 (d) charges for connection to, and the use of any (e) encourage and promote the development of transmission and distribution networks by energy industry including related capacity auto-producers' groups and co-generators; building; prices and charges in respect of electricity provided by licensee determined by the (f) collect and maintain. energy data, produce Commission to be subject to tariff 'national energy statistics and fulfil any regu lations; requirements for reporting of energy and emission data, as appropriate; (e) price of electricity for the sale of electricity (g) approve financial.. administrative and surpluses to the Public Utilities Corporation operational procedures; and any other distribution operators. (h) ensure compliance with conditions of (2) To achieve economic and financial sustainability of licenses issued under this Act; the service an operator shall comply with the following principles- (i) propose or recommend regulations which are necessary or expedient for the energy sector; (a)- costs covered by subsidies or grants provided by the Government or donor agencies shall G) formulate, enforce and review not be reflected in the costs of business environmental, health, safety and quality operation; standards for the energy sector, In consultation with relevant public bodies or (b) tariff adjustments and ensure price stability; statutory authorities; (c) tariffs for the supply of transmission and (k) periodically review the electricity tariffs of distribution services shall allow for the the Public Utilities Corporation, other recovery of costs including transmission, distribution operators and network users; (i) the costs of expansion, replacement and maintenance of the facilities; (I) monitor and ensure the implementation ofthe principles of fair competition in the energy (ti) the costs of financing the activities of sector, in coordination with other statutory an operator through loans and other authorities; borrowings; (m) undertake inspections; (iii) any other expenses, taxes, duties and (n) investigate complaints or disputes; levies imposed on the operator; (0) monitor compliance, enforce and review .(d) tariffs, shall contribute to conservation and regulations, codes and standards for the efficient use of electricity; energy sector; (e) tariffs shall provide incentives for (P) implement and enforce energy supply laws. 90 Supplement to 0fficiolGazette . [31st December 2012] [31st December 2012] SupplemellitoOjflcial Gazette 119 (2) . Withrespecttothee'ectricitysector- (c) preScribe~gnlationsfOrthe criteria for eli~ible Clean Deveto~ineritMechanism; (a) regulate the generation, transmission, distribution, supply and use of electrical (d) define supporttneehanism; energy; (e) .formulate andd~.yet()p ,a National Clean (b) ensure the sustainability and viability of DevelopmentMeG~sm policy; electricity.relatedactivity; (f) develoJ? th~/ ,crit~!a~,,ins\iyators, standard '. (c), oversee the efficient functioning and ;,sy:sterru;andp~<!~~~~. and evaluation tools development of. the" electricity sector and t()f, th~ Je'V~e~" of proposed Clean security of electricity supply; Development Mechanism project activities; (d) ensure the efficient supply of electricity. (g) undertake" assessment ,of proposed" Clean 'Development Mechanism project activities; (3) With respect to renewable energy- , . (h) monitor and implement Clean Development (a) advise and make recommendations to the Mechanism project activities located in Minister with respect to the promotion of .Seychelles; renewable energy sources; (i) perform such other functions that relate to and (b) carry out studies and research on measures in pursuance of the promotion of Clean and support options' to promote the use of Development Mechanism project activities renewable energy sources such as feed-in- that contribute to sustainable development. tariffs, power purchase agreements and recommend legislations to the Minister on PART IX - T.AR.RWS AND CHARGES such measures;

69.(1) The Commission shall set and periodically Tariffs (c) carry out research and studies on various review- financial or tax incentives and recommend the need for adoption of any such incentives; (a) tariffs for the sale-of electricity to consumers by the Public Utilities Corporation and other (d) manage funds for the promotion ofrenewable licensees; energy sources and ensure compliance with those funds; (b) feed in tariffs for the purchase of electricity by Public Utilities Corporation, transmission (e) recotylmend standards relating to renewable or distribution operators, auto-producers, energy; auto-producers' group and co-generators; (f) develop, implement and maintain national (c) tariffs payable by different categories of information and consumer educational consumers; 118 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 91 Measures 66.(1) The Commission shall advise the Minister and programmes on renewable energy sources, related energy other relevant authorities on alJ matters related to energy efficiency . and to foster .and develop public awareness efficiency and'energy conservation. and education at alJ levels the promotion and use of renewable energy sources in all sectors; (2) The Commission may- (g) develop, implement and maintain technical (a) propose actions and make recommendations training programmes; for implementation by other relevant authorities to reduce barriers to the (h) make use offlexible mechanism including the promotion of energy efficiency, including tax Clean Development Mechanism to promote .policy related to energy efficiency and development and exploitation of renewable conservation and pricing of primary energy energy sources. sources; (4) With respect to energy efficiency and energy (b) propose schemes and facilitate agreements on conservation- financial support toinitiate energy efficiency requiring financial support from any person; (2) develop and adopt guidelines on all energy and related products, and non energy related products which have potential to save energy (c) propose legislations on energy audits and when in use or installed; certification. (b) develop, implement and maintain public PART VIII - CLEAN DEVELOPMENT MECHANISM awareness programmes on the importance and benefits of energy efficiency and energy The 67.( 1) The Ministry responsible for Environment shall be conservation; Designated National known as the Designated National Authority for the Authority implementation of Clean Development Mechanism, (c) develop and implement energy efficiency and energy conservation standards; (2) The Designated National Authority may delegate its powers and function to any committee or office for the (d) promote co-operation among consumers, implementation ofthe Clean Development Mechanism. public authorities, producers and suppliers of energy to ensure compliance with the Functions 68. The Designated National Authority shall-" objectives and targets of energy efficiency; of the Designated (a) define and establish procedural requirements (e) make recommendations and propose actions National Authority , related 'to Clean Development Mechanism for implementation by other authorities aimed project proposition and proponents; at reducing barriers in the exploitation of energy efficiency potentials, stimulate (b) adopt rules and procedures related to project investments and foster energy efficiency in proposal analysis and evaluation; other sectors; 92 Supplement to OffioialGazette [31st December 2012] [31 st December 2012] Supplement to Official Gazette 117 (f) advise, make recommendations and propose PARTVTI -·ENERGYEFFICIENCY schemes for financial support and initiatives related to energy efficiency; 61. The promotion ofenergy efflciency in all sectors Energy efficiency, of the economy shall be pursued through the development and strategy (g) monitor the compliance of mandatory implementation of an energy efflcieneystrategy, schemes. Powers 7. The Commission shall have the power to- 62.{1) The C()mmissi~l\~h~~l prescribe by regulations Energy of the efficiency and Commission energy efficiency and ellergy«onservation standards to be energy (a) requestin writing a licensee, permit holder or' adopted by the household; cOtnmereial, industrial and public conservation the Public Utilities Corporation to provide the standards sectors. Commission with such information as it may from time to time require with respect to the (2) The Commission may make recommendations and operation ofits undertaking; proposals for the approval and adoption by the Seychelles (b) hold public hearings, in such manner as may be Bureau of Standards for energy efficiency and energy prescribed in relation to matters of significant conservation standards. public importance pursuant to the objects of the Commission which are being considered or 63. Tne Commission shall prescribe by regulations Guidelines on the subject matter of an investigation which is guidelines on labelling of all energy-related and non-energy labelling carriedout by the Commission. related products which have significant potential to save energy once in use or installed. Independence S. The Commisslon shall not be subject to the of the Commission direction or control of any' authority in its day to day .64.(1) The Commission shall develop National Information, management. consumer Information and consumer education programmes on energy education, and efficiency and energy conservation related to measures and training Division II - Board of the Commission programmes best practices in all sectors, including energy, transport, Establishment 9.(1) There is hereby established a Board known as the building, industrial, commercial and residential. and Seychelles Energy Board. composition of the (2) The Commission shall develop, implement and Seychelles (2) The Board shall consist of - Energy Board maintain technical training programmes and may enter into (a) a representative of the Ministry responsible agreements with universities, professional associations or for Energy; . other organisations. (b) a representative of the Ministry responsible 65. The Commission shall facilitate and foster co- Voluntary for Finance; operation and voluntary agreements between consumers, agreements and cooperation (c) four members knowledgeable in matters.of producers, industrial and commercial operators, importers and programmes . energy and having suitable experience; . public authorities to improve energy efficiency and energy conservation in the energy, environment, transport, land use, (d) the Chief Executive Officer - ( ex-officio). planning and industry sectors. 116 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 93 services to be discontinued are not required for public service (3) The President shall appoint the Members of the in the present or foreseeable future. Board, the Chairperson and the Deputy Chairperson from among the Members of the Board and shall cause to be PART VI - RENEWABLE ENERGY published inthe official gazette. Renewable 58. The use of renewable energy sources shall be (4) The Chairperson, Deputy Chairperson and energy promoted in all sectors. sources Members of the Board shall be paid such allowances as the President maydetermine. Power 59.(1) An independent power producer shall enter into a purchase agreement power purchase agreement for the sale of electricity generated (5) The Chairperson and the Members shall hold office from a renewable energy source. for a term of 3 years and shall be eligible for reappointment at the end of the term of office. (2) The power purchase agreement shall be in the form and manner as may be prescribed by regulations. (6) Where a vacancy arises for any reason whatsoever in the office of the Chairperson, Deputy Chairperson or any (3) The Commission may prescribe different forms of Member, before the expiry of the term of office, the person power purchase agreements having regard to the renewable appointed to fill such vacancy shall hold office for the energy source to be used and the capacity of the proposed unexpired period of the term for which his or her predecessor in renewable energy installation. office would have held office if such vacancy had not arisen. Information 60.(1) The Commission shall develop and implement 10.(1) The President may terminate the appointment of Termination and national information and consumers' education programmes the Ch'airperson,Deputy Chairperson or a Member, where the of office consumers' educ ation on on the promotion and use of renewable energy sources and Chairperson, Deputy Chairperson or a Member is- renewable energy enhance public awareness and education at all levels. (a) declared bankrupt; (2) The Commission shall disseminate information on (b) convicted of a criminal offence involving all related financial, economic, social, environmental as well dishonesty, fraud or moral turpitude; as subsidies and other advantages. (c) absent from three consecutive meetings of'the (3) the Commission may require the Public Utilities Board without leave of the Chairperson; , Corporation and any other distribution operator to provide consumers with information on any issue related to renewable (d) unfit to continue in office by reason infirmity energy promotion. of body and mind; (e) commits any offence which calls into (4) The Commission may require sellers and installers question his or her professional standing; or of equipment using renewable energy sources to provide information specified by the Commission. (0 guilty ofmisconduct. 94 Supplement to OffICialGazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 115 (2) The Chairperson, Deputy Chairperson .and any (b) provide aquaJity of service according to other Member may. resign from his or her appointment by standards and eonditions as prescribed by giving three months notice in writing to the President and en regulations; such resignation being accepted, the Chairperson, Deputy Chairperson or Member shall be deemed to have vacated his or (c) furnish the Commission with such reports, her office. accounts and other information relating to its operations as the Commission may require; . . (3) The Chairperson, Deputy Chairperson or a (d) comply with the conditions attached to its Member who has been removed from office under subsection licence; (1) shall not be eligible for re-appointment. (e) comply with any written direction given to it Functions 11. The functions of the Board shall be to- by the Commission in relation to the exercise of the Board of its rights and obligations under its licence; (a) issue, renew, modify, suspend or revoke a and licence, in consultation with other statutory (f) pay to the Commission such charges or fees as authorities; may be prescribed. (b) approve prices for the sale and purchase of (2) A licensee who enters into an agreement under this electricity and charges for the connection and Act shall file a copy of the agreement with the Commission use oftransmission and distribution networks within 15days of entering into the agreement and shall provide and surpluses; such information which the Commission may deem necessary to determine whether the agreement isin the public interest. (c) establish the procedures for setting and. reviewing tariffs; 56.(1) The Public Utilities Corporation and all licensees Inspection and shall pay to the Commission' each consecutive year the supervision (d) propose and approve standard power inspection and supervision fee prescribed ~y regulations. fee purchase and network connection agreements for engaging in electricity operations; . (2) Where a debt certificate is issued by the Commission in respect of the fees under subsection (1), (e) review any other laws relating to energy and ·summary proceedings may be instituted before a competent make recommendations; court. (f) advise the Minister on all matters relating to 57.(1) An operator carrying on an electricity related Abandonment energy including renewable e!lergy. activity shall not wholly or partially abandon any electricity facility or discontinue any service without a prior written Meeting! 12.( 1) The Board shall meet at least once every3 months. approval ofthe Commission. procedures of the Board (2) A meeting of the Board shall be held at such place (2) The Commission may only authorise such and at such time as the Chairperson may determine. abandonment or discontinuity after checking that facilities or 114 Supplement to Official Gazette. [31st December 2012] [31st December 2012] Supplement to Official Gazette 95 transmission and distribution operator concluding an (3) The Chairperson may by written notice convene a agreement in the manner and form prescribed in the special meeting of the Board for any purpose specified in the regulations. notice. (3) Where an agreement is not concluded within 60 (4) Not less than 3 Members may, by notice in writing, days of an applicant making application for connection or submit a request to the Chairperson to convene a meeting. access, either party to the agreement may apply to the Commission for settlement of the dispute and the Commission (5) Where a request is made under subsection (4), the shall make a decision within 3 months of the application .' Chairperson shall convene a special meeting within 21 days of the request. (4) A party dissatisfied with the decision of the Commission under subsection (3) may appeal pursuant to the (6) Where the Chairperson is absent or unable to act or provisions of section 83. has vacated his or her office, the Deputy Chairperson shall act

54.(1) Subject to subsection (2), the Public Utilities as Chairperson. Expansion of distribution Corporation and any other transmission and distribution and transmission operator shall eptimise, boost and expand their existing (7) The Chairperson and four Members shall network network system in order to guarantee the purchase, constitute 2 quorum for any meeting of the Board. transmission and distribution of electricity generated from a renewable en.ergysource. (8) Every decision shall be taken by a majority of votes of the Members present and entitled to vote, except the Chief (2) A transmission and distribution operator shall only Executive Officer who shall have no voting right, and in case of expand their transmission and distribution systems when it is an equality of votes, the Chairperson or in the absence of the justified and economically reasonable to do so pursuant to the Chairperson, the Deputy Chairperson shall exercise a casting Grid Code and other applicable regulations. vote . . (9) The Chairperson, Deputy Chairperson or a General 55.(1) Every licensee shall- obi igations of Member shall, in relation to any matter before the Commission a licensee (a) maintain any electrical power plant and in which heor she, has a pecuniary or other material interest- premises related to the electricity related activity- (a) disclose the nature of that interest in writing at or before the meeting convened to discuss (i) in such condition as to enable it to that matter; pro v ide adequate and effie ient electricity service to network users and (b) refrain from taking part in any deliberation of consumers; the Board relating to that matter; and (ii) without endangering safety, security (c) leave the meeting during the time the matter is and health. being deliberated at the meeting. 96 Suppl~1It~nt't0 OffiCial Gazette [31st December 2012] [31~. Deeember'2012] .Supplement to O!ftciitl Gazette 113 ,(l(»Jhe.ll~ .shall regulateits ..pl'Oceedings in such ecooQmicalrnan,r)in ol'der te.ensure ..the rnann$r .as'it thinks tit. ". capaei~available:fo'meet reasoDf,lljle demands 'for the distribution andsupply of (1 J) Any decision of the Board shall not be questioned electricity; 4ue~0. any vacancy in theP1e~bership.oftbe Board, defect in • " '''',:!' the qqalifications or ,appointnlent or any -Member, where the (b) supply electrici~,t<?allcoqsumer:swithin its decision was taken and the proceedings took place in 8feao(~upply; concurrence with majority ~ vote ofrnembers present. . ,'.: ::'.' " (c) cOI1)plyWith' all apP,li~blerequifemen~ of the GtidCdde; '. ,.: "., '. , ',' ' , " Co-opted 13. (1) The Board may co-opt any person with sufficient • person knowledge and experience to advise the Board on matters of (d) complywith the technital regulations relating technical nature. , to transmission andd~tribution.operations; "J: :~!,:I (2) Any'perssnco-opted under SUbsection (1) has no (e) comply with the regulations on environment, right to vote on any matters before the Board. healthsafe.tyand , security; (f) provide toconsurtters Ilndnetwotku~ers the Committees 14. (1) The Board may appoint such committees as may be technical service and quality of service as set necessary for the efficient performance, exercise and out in the regulations; discharge of its functions, powers and duties: (g) ensure long term ability ofthe system to meet Provided that all or a majority of the members of reasonable demands for the distribution of each committee shall be Members .and a member of any such electricity; committee W~Q is ~l,Qta Member shall have only the right to attend meetings of the committee and take part in the (h) maintain sufficient reserve capacity. proceedings thereof, but shall not have the right to vote.

53.(1) An electricity - transmission and distribution Third party operator shall authorise an applicant to connect and have network access Secretary 15.(1) There shall be a secretary of the Board appointed from among the staff ofthe Commission to act as its secretary. access to its transmission and distribution network pursuant to the applicant- (2) The secretary shall arrange the agenda and the Board meetings, record the minutes of the meetings and (a) complying with the Grid Code and any maintain all records relating to the activities conducted by the technical conditions of connection and use of Board and such otherfunctions assigned by the Board. the network; and (b) paying of such fees and other charges for Appointment 16.(1) There shall be a Chief Executive Officer of the • network services as may be determined by the of Chief Executive Commission who shall be appointed by the President. transmission aha distribution operator. Officer (2). The Chief Executive Officer shall be responsible, (2) The connection to and access to the transmission . for the implementation of the decisions of the Board, and for and distribution networks shall be subject to the applicant and 112 Supplement to Official Gazette [31st December 2012] [31st,December 2012] Supplement to Official Gazette 97 access and use of its transmission network within 6 months of carrying outthe day-to-day management and administration of the commencement of this Act. the Commission. System 51.(1) The Public Utilities Corporation shall be the (3) The Chief Executive Officer shall act in accordance operator principal system operator. with such directives as he or she may receive from the Board. (2) The system operator shall be responsible to- i7.(I) The Commission may, on such terms and Slairof conditions as it thinks fit, employ such inspectors, officers and Commission (a) co-ordinate the power supply system to other statT IlS may be necessary for the proper performance of obtain instantaneous balance between its functions on such terms and conditions as may be generation and consumption; determined by the Board and according to such procedures applicable toemployees of public bodies. (b) dispatch all generation installations connected to transmission facilities; (2) An inspector, officer or any staff of the Commission shall not acquire any kind of interests in any (c) co-ordinate planned generation and planned electricity related activity or in any contract with the transmission outages; Commission; (d) enforce compliance with the Grid Code; and (3) Where an inspector, officer or any staff had (e) discharge such other duties as may be acquired allinterest referred to in subsection (2) by succession prescribed. or otherwise, he or she shall, unless the Commission determines otherwise, forthwith dispose of that interest. (3) Notwithstanding subsection (I), owing to any . . \ reason it is not practicable or feasible for the Public Utilities Division III - Funds of the Commission Corporation to ensure electricity transmission in a specific area or in any part of Seychelles; the Minister in consultation with 18. The Commission shall have its own funds and all Transfer the funds transferred from the Seychelles Energy Commission of Funds the Commission may call for competitive tenders from other transmission and distribution operators. constituted under Act 2010 credited to the Fund and all payments by the Commission shall be made therefrom. Distribution 52.( 1) The Commission shall authorise the construction of electricity for the operation and maintenance of distribution network 19.( I) The funds ofthe Commission shall consist Of-Funds of the Commission system, subject to such terms and conditions, for the (a) moneys approved by an Appropriation Act; distribution of electricity. (b) moneys received by the Commission by way (2) The Public Utilities Corporation or a licensee shall, of donations or grants for the purpose of the forthe distribution of electricity- Commission. (a) construct, maintain, improve and expand its (2) The funds of the Commission shall be applied by distribution network systems in an the Commission in ----

98 . Supplement to Official Gazette [31st December 2012] [31 st December 2012] Supplementto Official Gazette III (a) the 'payment o.r discharge of the costs, 49. The Commission may .authorise an operator to Authorise transmission expenses and ether obligations-of the install, operate and maintain the transmission network. network Commission; and

50.(1) The Public Utilities Corporation or ether Transmission of electricity (b) the payment of remuneration, fees and transmission licensee shall- allowances payable to. the Chairperson, Deputy Chairperson, Members of the Beard (a) comply with all the, requirements of the grid and-staffof-the Commission. cede; (b) comply with all technical regulations Financial 20.(1) Subject to. subsection (2), the financial year of the regulating transmission of electricity; year Commission shall be a period of 12 months ending' on 31st December of any year. . (c) comply with the regulations en safety, security, health and environment; (2) The first financial year ofthe Commission shall end en'31st December next following the date of publication ofthis (d) ensure the long-term ability of the system to Act. · provide reasonable demands fer the transmission of electricity; Estimates 21.(1) The Commission shall prepare estimates of the income and expenditure of the Commission, including its (e) operate, maintain, develop, upgrade and capital budget fer the financial year and submit the estimates to. expand its transmission network in an the Beard fer its approval. economical manner so.as to.ensure a secure, reliable and efficient transmission system (2) The Beard may approve with or without with due regard to.the environment; .modification the estimates submitted to it under subsection (1). (t) contribute to. security of supply through an (3) Subject to.subsection (2) the Beard shall submit the adequate transmission capacity and system estimates to.the Minister who. may, after consultation with the reliability; Minister responsible fer Finance, approve with or without (g) manage 'electricity flews on the system and modification such estimates fer the period fer which it is ensure a secure, reliable and efficient prepared, and the estimates approved shall be the estimates of electricity system; the Commission fer that period, (h) supply electricity to.all consumers located in Accounts and 22.( 1) The Commission shall keep proper accounts and Audits its area of supply; and ether relevant record of accounts, and prepare in respect of each financial year, a statement in such form and manner as (i) provide to.consumers and network users the may be prescribed by regulations. ' technical service and quality of service as set out in the regulations. (2) The accounts of the Commission shall be audited by the Auditor General in accordance with Article 158 of the (2) The Public Utilities Corporation shall establish Constitution, and publish procedures governing requests to. connection 110 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 99 Construction 47.(1) Subject to this Act and any other laws, a permit 23. The Board shall prepare once every calendar year, Annual of electricity holder may construct and a licensee may own, operate and generation in such form and within such time as may be prescribed, an Report plant maintain an electricity generating plant for the purposes of annual report giving a full account of its activities during the generation of electricity. previous year and copies together with the statement of account audited under section 22 shall be forwarded to the (2) The design and operation of the generation plant Minister and the Minister shall cause the same to be tabled shall be prescribed by regulations. before the National Assembly. Sale of 48.( I) Subject to such conditions a licensee, shaH- 24. The Minister in consultation with the Commission Funds for energy surplus may prescribe by regulations funds for energy efficiency and efficiency and electricity (a) sell any surplus electricity generated by its renewable auto-production plant to the Public Utilities renewable energy for the purposes of developing and energy promoting anyenergy projects. Corporation or any other distribution operator at the prescribed tariff; PART III -LICENCES AND PERMITS (b) purchase any electricity requirements which are not met by its own auto-production plant Division I - Provisions related to permits from a distribution operator at the prescribed 25.( I) A person shall make an application to the Application for tariffs; Commission for a registration certificate as auto producer, auto registration certificate producer group, co-generator, Independent Power Producer, (c) have access to and use of transmission and transmission or distribution operator in the form and manner distribution networks of the Public Utilities prescribed byregulations. Corporation or any other transmission or distribution operator for the purposes of (2) The Commission shall process all applications for transporting electricity generated from the the registration within 30 days after the Commission confirms auto-production point to the consumption receipt oftheapplication. points of the same auto-production group at the prescribed tariffs; (3) The Commission may grant or refuse an application (d) comply with the prescribed security, safety for registration and give reasons for the decision. and technical conditions of access. (4) The Commission may suspend or revoke a (2) Any surplus electricity generated by auto- registration certificate on a complaint by an interested person producer, auto producer group or co-generator shall be paid oron its own initiative. through a feed-in tariff or other schemes as prescribed by regulations. 26.(1) Aperson in possession ofa Registration Certificate Application for permit shall apply for a permit to the Town and Country Planning (3) Any person carrying out generation, auto-production Authority for the construction of generation plant, auto or co generation shall supply the electricity generated through production, co-generation plant, transmission or distribution the local transmission or distribution network. facility in theform and manner prescribed by regulations. 100 $upp1f!mentto Official Gazette (lIst D~etnber 2012] [31~ll)ecember 20 12] Supplement to Official Gazette 109 ;(2) The Town and Co.urltrMEJanning AuthorityshaU '" 44.(l) ..'The Minister may, .'....• in",consultation with' the Tendering fur electrl(jity' co.~u1tthe., Commission prior to.i~o.D$ideringthe'.applieatier' Conunissionand any relevanf:'authority·through a fair, open generation forthe grantor refusal of the permit ..:, andco.mpetitiveprocess launcha tender for the procurement of plant new electricity generation plant. (3) The Commission $AlllJ within 21 .days o.f no.tificatio.no.fthe application fonvar~itsrecommendation tc (2) The call fora tendershall '- the Town and Country PlanningA,thority~ (a) specify the nature o.f the primary energy (4) The Commission, inlllaking,its reeommendatior source; shall have regard to regulations, relating to-· (b) set out the amount of electricity that shall be (a) safety, security a'ridhealth; generated from theprimatj' energy source; ,,··,,1' (b) electricity networks requirements; (c) identify the location of the generation plant; (c) Grid Code; (d) provide the eligibility requirements of the (d) electrical installations; applicant; (e) any other technical.matters. (e) determine the mechanism for the purchase of the electricity generated; (5) Where the Commission recommends that a permit should be refused it shall include reasons for the refusal. (f) , set out the conditions for the selection of the best bidder; and Public 27. The Public Utilities Corporation shall apply for a Utilities permit for the construction of new electricity power generatior (g) any other conditions or requirements as may Corporation for permit plant and for the maintenance, replacement, repair 0.1 be determined by the Minister in consultation extension of existing transmission or distribution networks. with the Commission. Suspension or 28. The Town and Country Planning Authority may 45. Where the Minister in consultation with the Generation capacity required revocation of suspend or revoke a permit o.n a complaint by an interested Commission determines that a new generation capacity is as a matter of permit party or on its own initiative. required as a matter of emergency to. ensure the continued national interest uninterrupted supply of electricity, sectio.n-44shall not apply. Division II - Provisions related to. licenses PART V - ELECTRICITY RELATED ACTIVJTIES Licenses 29.(1) A person shall not carry o.nany electricity relatec activity without a licence as prescribed by regulations, . Generation, Transmission, Distribution and Supply (2) Electricity related activities shall be carried out or 46. The provisions of this Part shall be in addition to Additional the basis of a separate licence for each electricity marke conditions of and not in derogation of, the conditionsof a licence issued licenses and activity. under thisAct. permits 108 Supplement to Official Gazette [31st December 2012] [3 1st December 2012] Supplement to Official Gazette 101 (a) conditions and requirements for carrying out (3) Notwithstanding subsection (1), the Public Utilities the licensed or permitted activity; Corporation shall be exempt from the requirements of applying for a licence for distribution and transmission of electricity. (b) obligations and rights of the licensee, permit holders and consumers;

30.(1) An application for a licence including an Application for licence (c) obligations and rights of the licensee anu application for amendment, transfer or renewal together with permit holders with regard to the Commission the application fee, shall be made to the Board in the prescribed and other public authorities; form and manner. (d) sanctions for breach of obligations; (2) The Board may, within 21 days of the date of application, require the applicant to furnish any additional (e) services for technical, safety, securir information that it considers relevant. environmental standards and requirements; (t) requirements related to service obligations; 31.( 1) The Board shall, in relation to an application made Decision of under section 30, communicate its written decision to the the Board (g) tariffs, quality of service and connection to applicant not later than 3 months from the date the- and use of transmission and distribution networks; (a) applicatiorrwas made; (h) the period of validity ofthe licence or permit; (b) applicant has submitted any additional information, where such information was (i) yearly inspection and supervision fees ani required of the applicant, whichever is the security to be paid by licenses or permit latter. holder; G) the period of construction of the electric it} 32. The Board shall, in granting or refusing an Factors to be considered in m generating plant or installation for the application for a licence take into account- application for I transmission or distribution of electricitj licence from the date on which-the licence or perrni. (a) the impact of the operation on the social, was granted, or any extended period which cultural or recreational life of the community; the Commission may allow; and (b) the need to protect the environment and to (k) any other matter connected with the carrying conserve the natural resources; on of the electricity related activity. (c) land use or the location of the electrical plant; PART IV - INDEPENDENT POWER PRODUCERS (d) whether the licence, if granted, would be Electricity 43. An independent power producer shall be eligible to beneficial to and promote public interest; generation plant construct, own and operate an electricity generation plant pursuant to sections 25 and 26. (e) the economic and energy policies; 102 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 107 (t) the applicant's. suitability to . perform the (b) determine whether any provision of this Act technical,economie, fin.ancial and or any notice"direction or authorization organisatienal capacity of the electricity served. made, given or issued under this Act is related activity; being or has been complied with; (g) 'any other matter that. the Commission may (c) examine and testequipment, power plant, or consider likely to have a bearing on the any othermaterililobjects or conduct a search operation. where the inspectdr'ora person authorised has reason to believe that an offence under this Powers of the 33.(1) The Board may - Act has been or is being or is about to be Board in committed; relation to licenses (a) issue, transfer or renew a licence or amend (d) seize records or jnaterlal objects if the the conditions of a licence, on such terms and inspector or the person authorised has conditions as it thinks fit; or reasons to believe that it may furnish (b) refuse an application. evidence of a commission of an offence punishable underthisAct. (2) Where the Board refuses an application, it shall (2) An inspector or person authorised by the state the reason for the refusal. Commission may request, a licensee, permit holder or the Public Utilities Corporation to submit, periodically or as and (3) A licence shall not be issued, transferred, renewed, when required, any information, accounts or other documents or conditions of a licence be amended by the Board, unless the in such manner as may be determined by the Commission. application is accompanied with the prescribed fee. (3) The Commission may require that the accuracy of Suspension 34.( I) The Board may, on a complaint by an interested' or revocation any documents or particulars be verified. oflicence party or on its own initiative suspend the conditions,suspend or, revoke a licence on the ground that the licensee- (4) The Commission may appoint independent persons to assist in the exercise of its powers ,or duties as it deems (a) has failed to commence operation of the plant necessary. relating to the licence at the expiry of 24 months from the date on which the licence (5) An inspector or a person authorised by the was granted, or at the expiry of any extended Commission under subsection (1), shall produce the identity or period; proof of such authorisation at the request of a licensee, permit (b) is either wilfully or negligently not operating holder, or Public Utilities Corporation. in accordance with the terms and conditions of the licence; 42. The Minister may, in consultation with the Regulations Commission and other relevant authority prescribe by relating to licenses and (c) is adjudged a bankrupt; or regulations, for - permits 106 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 103 (b) prevents the entry of any person into (d) after commencement of the licence makes electricity market; representation to the Commission that the operation cannot be carried on with profit, and (c) deter any other licensee or permit hoIder from ought to be abandoned. engaging in any competitive conduct; (2) Where the Board suspends, revokes or amends the (2) A licensee shall not discriminate between persons conditions of a licence under subsection (1), it shall give where services are provided on the basis of- reasons for the decision and request the licensee to make written representation within 14days of the decision. (a) any fee or charge for the service provided; (b) the performance characteristics ofthe service (3) The Board after considering any representations provided; or " made under subsection (2) shall communicate its decision and the reasons in writing"to the licensee not later than 3 months (c) any other terms or conditions on which the from the datethe representation is served under subsection (2). service is provided. (4) Where a licence is suspended or revoked by the Separate 40.( 1) A licensee involved in more than one type of Board, the Commission shall, in consultation with the account by electricity related activity shall keep separate accounts and Minister, take such action as is necessary to ensure that the licensee prepare a separate accounting statement and balance sheet, in supply of electrical energy to consumers is not unduly respect of each activity. interrupted asa result of the revocation or suspension. (2) A licensee shall cause its accounts to be prepared in (5) A suspension or revocation of a licence shall not accordance with International Accounting Standards; and indemnify the holder against any penalties for which such person mayhave become liable under the Act. (3) A licensee or permit holder carrying on any (6) Notwithstanding subsection (I) the Board may business activity in addition to carrying on electricity related suspend a licence, where- activity shall keep separate accounts for those distinct business activities. (a) it is in the public interest to do so; or

41.(1) An inspector or any person authorised by the (b) the urgency of the matter requires. Inspections by Commission Commission in writing shall have the right, at all times to enter or euthorised (7) A suspension effected under subsection (6) shall persons upon the premises of a licensee, permit holder or Public lapse after 21days unless- " Utilities Corporation to- (a) the suspension has been revoked prior to that (a) inspect or investigate any power plant, period; or machinery, books, accounts, records and other documents found thereat and take (b) a decision has been served by the Board under copies thereof; subsection (2) during that period. 104 Supplement to Official Gazette [31st December 2012] [31st December 2012] Supplement to Official Gazette 105 (8) A revocation or suspension shall not prejudice any (2) The Minister may; after consultation with the claims against the licensee .. Commission, publish by notice in the Gazette the list of licensees for carrying on an electricity related activity and the Division III -Provisions related to licenses and permits manner in which or the quantity of electricity likely to be Expiration 35.(1) When a licence expires and has not been renewed or generated, transmitted or distributed; of licence transferred, the Commisison may order the Iicensee to dismantle and remove all plant, equipment and facilities used 38.{ 1) A licensee without the approval' of the Commission Restrictions on licensee or in the licensee's business, and reinstate the land to the or a permit holder without the approval of the Town and permit holder , satisfaction of the Commission within two years from the date Country Planning Authority, shaUnot- of the expiration of the licence. (a) acquire by purchase or otherwise affiliate with, the operation, of any other licensee, Register 36.(1) The Commission shall cause to be compiled and merge or consolidate its undertaking with any maintained a Register, in such form as it may determine, of- other licensee, permit holder or the Public (a) every licence granted; Utilities Corporation; (b) registration certificate; (b) assign, transferor sell all or any part of the operation; (c) directions or approvals given or decisions made with respect to licence; (c) associate for the purposes of ajoint venture or enter into any similar arrangement with (d) suspension, revocation, refusal or regard to the provision of any electricity amendments of licence; and service; or (e) such other information or particulars as the (d) transfer or otherwise, divest, of any powers, Commission may consider necessary. rights or obligations conferred or imposed for the purposes of carrying out any electricity (2) The Register shall be available for inspection by the related activity under this or any other Act. public, during such hours and subject to the payment of such fee as may be prescribed by the Commission. (2) Any act done in contravention of subsection (I) shall, notwithstanding anything to the contrary, be void and the (3) A person may, on the payment of such fee as may be licence or permit shall be revoked. prescribed, require the Commission to provide a copy of, or extract of, any part of the register, being a copy or extract which is certified by the Commission to be a t rue copy or extract. 39.( 1) A licensee or permit holder shall not take any action Prohibited or enter into any agreement which - ' conduct by licensee or permit holder Notification 37.( 1) The Commission shall submit to the Minister, once (a) eliminates or substantially damages another to Minister every 6 months, licences issued, transferred, renewed, licensee or permit holder in the electricity amended, refused, suspended or revoked; market in which it operates;