PPC COMMENTS ON THE ELECTRICITY REGULATION BILL

STAKEHOLDER

COMMENTS

ACTION

DME COMMENTS

       
 

General comments

   
       

Chamber of Mines

The Minister should make regulations in relation to customer rights

Include

Agreed

Eskom

The Bill gives rise to neighbouring customers being priced differently when exempting municipalities from being licensed. The regulator should regulate entire industry including municipalities.

 

Section 76:

 

Section 13(9) of the Electricity Act, provide for Eskom to cede its servitude right to another licensee by way of deed of cession without the consent of the landowner. This section has been omitted from the Bill

To be transcribed from Electricity Act

Agreed.

Eskom

There is an obligation for Eskom to enter into a Service Level Agreement with municipalities. This obligation gives municipalities power over Eskom. This provision will make Eskom lose their customer base, revenue and assets without due compensation. Mechanism for efficient transformation should be inserted

 

Section 76:

Eskom

The Bill should support the Energy White Paper with regard to consolidation of electricity distribution and eliminate barriers to electrification.

 

Section 76

Eskom

The Bill provides the municipality with monopolistic control with almost no regulation

 

Section 76

RED1

Delineate clearly the role of the National Energy Regulator in regulating Service Providers

 

Agreed and already incorporated; all SPs must be licensed in terms of section 75. Reticulation is Section 76

RED1

The Bill should facilitate embedded "generation"

 

Agreed. Nothing stops this, in fact, renewables are facilitated. s46(1) (b)

RED1

RED must have one set of harmonised tariff

 

Noted. Section 76 will address this

RED1

DME Minister should regulate the SDA in consultation with dplg Minister

 

Section 76 will cover the regulation of municipalities

RED1

The whole industry should be regulated in a similar way

 

Noted, Section 76 to cover this.

RED1, Chamber of Mines

The Bill deviates from the Blue Print report

 

Noted , section 76

City of Cape Town

Green energy to be covered

 

Agreed , covered in Section 46 1(b)

City of Cape Town

Electrification funding should be covered in the Bill

 

Disagree-INEP funded from fiscus as part of social infrastructure funding.

City of Cape Town

Municipal surcharge should be regulated

 

Section 76. Agree though that surcharges need to be regulated

City of Cape Town

"Reticulation" should be defined as "distribution"

 

Section 76

Chamber of Mines, CENTLEC

The Bill should also cover rights over streets and national roads

 

Agreed. Incorporate "roads" with "streets".

Chamber of Mines

The bill is silent about EDI Restructuring

 

EDIR Bill will be issued soon

EIUG

NERSA should license the whole electricity industry including municipalities

 

Strategy to be presented in EDIR Bill which will form part of Section 76.

EIUG

The choice of supply to contestable customers should be clearly outlined in the Bill

 

Reference to contestable customers to be deleted.

Chamber of Mines, SALGA

The Department should have started with the EDI Restructuring Bill

 

Disagree. The EDIR Bill addresses one part of the industry.

SECCP

The Bill should include stepped tariff for residential consumers to cover the price of the externalities related to the production of electricity.

 

Tariffs are NERSA mandate/jurisdiction.

SECCP

A National Agency for energy efficiency should be established

 

Done. Minister launches it soon

CENTLEC

The Bill should legislate key performance indicators such as expenditure on:

  • Maintenance and
  • Refurbishment.

To be included

Agreed. Section 75 empowers Minister to form regulations including for norms and standards

CENTLEC

Amendments to MFMA for effective regulation to prevent municipalities from determining their own tariff. The MFMA also requires that a municipality should approve the budget for the RED and is impossible for more than one municipality to approve a budget for one entity.

 

Agreed. EDIR Bill will address this.

UCT

There was no presentation; most of the comments were referring to reticulation services.

 

Section 76

Sustainable Energy Africa (SEA)

All the comments were based on reticulation services

 

Section 76

       
       
 

Specific comments

   
       

Eskom

A consumer should be defined with reference to a person lawfully connected.

To be changed

agreed

Cosatu

"Consumer" should be defined as "end-user"

 

Agreed. Creates clarity relative to "customers"

Cosatu

Community

"community" is not defined and must be defined as end-users, commercial customers and light industrial customers:

"domestic end-user" should be defined as the "end-users".

In this regard we base our proposal on the Constitution, which recognizes access to energy a key component of our citizenship. Therefore, referring to end-users as consumers promotes commodification of socio-economic rights enshrined in our constitutions

 

 

 

 

 

 

 

 

 

 

Section 76

agree

       

CENTLEC

The distinction between a customer and consumer is not necessary

 

Disagree. Need to safeguard consumer interests as well

Eskom and Cosatu

The definition of "domestic consumers" and "industrial customers" is confusing and is not mentioned anywhere in the bill. Commercial is also excluded from this definition.

(Cosatu) "domestic [consumer] end-user" means a person who consumes electricity for domestic users;

 

 

 

 

 

 

Section 76: "domestic and industrial" are used in the definition for reticulation. However, the use of the word consumer and customers needs clarification

 

The definition for "distribution" should be amended as follows: ‘‘distribution’’ means the conveyance of electricity through a distribution power system, excluding trading, and ‘‘distribute’’ and ‘‘distributing’’ have corresponding meanings;

To be amended

Agreed

NERSA

"Department" is defined as the DME

 

Delete this definition

Eskom, CENTLEC

The definition of "electricity reticulation" is not clear. Does it exclude Eskom customers? Does the definition include municipal entities such as REDs

 

Section 76: Discussions required in this regard

Eskom

Definition of "person" should be amended as follows: includes any juristic body or organ of state as defined in section 239 of the Constitution.

To be amended

Definition to be amended accordingly

EIUG, Chamber of Mines, COSATU

Definition for "contestable customers" should be included in the Bill

To be included

Delete all reference to this

NERSA

‘‘integrated energy plan’’ means an energy plan established by the national sphere of government and approved by Cabinet to give effect to national policy;

discard

Not necessary to get Cabinet approval, prerogative of Minister.

NERSA

‘‘prescribe’’ means prescribe by regulation or rule;

To be amended

Agreed

NERSA

For consistency and to avert confusion the following definitions should be used:

"price" means the charge for electricity.

"tariff" means the charge for electricity services.

 

 

To be amended

amend

 

 

Agree

Agree

Eskom

Definition of "reticulation" need to be redefined, currently only municipalities that can reticulate, yet other entities can also reticulate.

The definition is also inconsistence with section 28(3) which provides that a person who provides reticulation services must have a service delivery agreement with the municipality

 

Section 76:

EIUG

The definition for "transmission power system" should read as – a power system that operates at or above 132kV.

 

Regulator has technical definition which is acceptable to the industry and Grid Code confirms this.

NERSA

‘‘transmission’’ means the conveyance of electricity through a transmission power system, excluding trading, and ‘‘transmit’’ and ‘‘transmitting’’ have corresponding meanings;

 

Agreed.

Eskom

Section 2: Object of Act:

Section 2 (b), (f) and (g) reference should be made to consumers not customers.

To be amended

Agreed

Chamber of Mines

Customer rights should be included in the object of the Act

To be amended

Agreed

Cosatu

Objects of the Act

( c) facilitate public investment in the electricity supply industry;

(d). facilitate universal and affordable access to electricity"

(f) promote competitiveness and customer choice:

and] "(q) facilitate an [fair] equitable balance between the interest of customers, licensees, [investors] in the electricity supply industry and [the public] domestic end-users

(h) Regulate generation, transmission and distribution in line with government policy framework.

disagree

amend

Uphold

Accept

 

amend

Private participation in generation is policy

agreed

 

agreed

 

 

 

       

Eskom

Section 4:

Section 4(a), should read as "the regulator must consider application for licenses and may issue licenses for-

In section 4(a)(i) the word "must" should be substituted "may"

Section 4(a), (ii), (v), (vi) and (vii) may remain as prescriptive duties

Section 4(vi), It is not clear how the regulator will monitor performance with regard to national policy framework and the integrated energy plan.

Section 4(b) (i), the word "customer" has been omitted. The regulator should have powers to mediate even between customers and licensee.

To be amended

Agreed

 

 

 

 

Agreed

Delete, Minister monitors policy

Include

NERSA

Section 4: "The Regulator must, as appropriate, in accordance with this Act" —

(1) issue licences for—

(a) the construction of generation, transmission and distribution facilities

The regulator should also issue a licence for construction just like in the Gas Act.

 

 

First part dealt with as per Eskom suggestion. You are disallowed from engaging in construction if you don’t have a licence anyway.

NERSA

Section 4(a) (i) (dd) does not occur in the substantive licensing section, hence must be deleted. "any prescribed service relating to trading and generation, transmission and distribution facility"

To be deleted

Agreed

NERSA

Mediation of disputes must be compulsory, include section 4(b) (i) and 4(a). Section 4(b) (i) refers to investigations by the regulator which is not compulsory at the moment; the regulator can investigate at its own discretion. There is a request that investigation should be compulsory.

Section 4(b) (i) should be moved to section 4(a) if this provision is moved as suggested. The regulator will be forced to do investigations even when not necessary.

"municipalities" replaced by "customer and consumers"

Must cover consumers, customers as well.

 

agreed

NERSA

Deletion

Delete section 4(b) "the regulator may acquire or rent fixed or movable property and dispose of it in order to perform its functions

To be deleted

Belongs in NER Act, not here

NERSA

 

Section 5: Advisory Committee

Rename the " Advisory Committees" as "advisory forums"

To be amended

Agreed

Cosatu

Reword

"Section 5(2) The Regulator [may] must require a licensee to establish and fund a customer forum in the manner set out in the license held by such a person."

To amend

Agreed

NERSA

Section 6: Customer or Consumer Forum

Additions

Licensees should also have representation in the customer forum

 

6(1) to be amended to include licensees.

Customer forums would be formed as a licence requirement, so agree.

NERSA and Rand Water

Deletion

Section 6(2), allows that the regulator may require a licensee to establish and fund customer forums. This section should be deleted.

According to Rand Water, the funding of the customer forums as provided for in section 6 (2) needs to be re-visited. It should be specified which customers might be needed to establish such forums. The funding issue should not be left to one person to decide. This might result with other customers funding forums to their financial detriment. I suggest that the members of the customer forum should determine how they will go about funding their forum.

 

disagree

 

 

 

Misunderstood how consumer forums are envisaged to be funded

Eskom

Section 8:

Section 8(1) should be amended as follows: "No person may, without a licence issued by the regulator for that particular activity"

This section should also place an obligation on the regulator to develop and publish a process to be followed in applying for a license and criteria that will be applied in granting a licence.

In subsection 3(a), the word "construction" should be removed, as a licence is not required for construction.

 

To be amended

 

To be included

 

 

To be discussed

 

Agreed

 

Agreed.

 

 

Agreed

NERSA

8. (1) No person may, without a licence issued by the Regulator in accordance with

this Act—

(a) construct any generation, transmission or distribution facility;

(b) operate any generation, transmission or distribution facility;

(c) import or export any electricity

(d) be involved in trading of electricity

 

 

 

 

Agreed.

Cosatu

Section 9.

"The Minister may, after consultation with the Regulator and stakeholders in the Advisory committees, determine by notice in the Gazette that any activity contemplated in section 8(1) need no longer be a licensed activity from the date set out in such notice."

disagree

Minister makes the determination alone

EIUG

Licensing requirement for re-sellers of electricity

 

Define resellers to make practical the licensing of same

Eskom

Section 10:

Section needs to be reworded clarifying how often one should register with the regulator.

To be amended

See below

NERSA

Section 10. (1) The Minister may, [after] in consultation with the Regulator, determine by notice in the Gazette that any person involved in an activity relating to trading or the generation, transmission or distribution of electricity that does not require licensing in terms of section 8, read with section 9 must register with the Regulator

 

Amend to cover registration as well.

       

Eskom

Section 11:

In subsection (2) (c), the word "to be constructed" should be deleted

 

To be deleted

 

 

Agreed.

Eskom

Subsection (2) (g), should read as "evidence of compliance with the integrated energy plan applicable at that point in time or provide reasons for any deviation therefrom".

To be amended, with conditions The Regulator to seek Minister’s approval before deviating.

The regulator should request the Minister’s approval before deviating from the integrated energy plan.

Eskom

In subsection (2) (h), the Minister should prescribe broad policy needs while the regulator prescribes licence requirements.

To be amended

Delete

Eskom

In subsection (3) these powers are more suitable to the regulator acting in accordance with certain policies prescribed by the Minister

 

Agreed. Reword.

Cosatu

Section 12 –Advertising of licence application

Section 12.(1),(2),(3) outlines the process, conditions and information that must be fulfilled regarding a license application. Clause (2)(d) falls short of stating how the Regulator would deal or address the objections of members of the public.

We propose that amongst particulars contemplated to be prescribed in terms of Section (2)(g), that the prescriptions also deal with how the Regulator processes objections from members of the public.

 

 

 

 

 

 

Accept

 

 

Position provided by the regulator would have been in consultation with Stakeholder structures. This should not be used to undermine the legitimacy of the Regulator

Refinement in Bill or by Regulation

       

Eskom

Section 14 – Finalisation of application

Subsection (4) should read as "The regulator will issue one licence per application for each of the activities contemplated in section (3)" The current wording means that an applicant cannot be engaged simultaneously in more than one activity.

 

To be amended

Agreed

 

NERSA

14(3) The Regulator must issue separate licences for—

(a) the construction of generation, transmission and distribution facilities;

(b) the operation of generation, transmission and distribution facilities;

(c) the import and export of electricity; or

 

Disagree. No need to license construction. Enough cover as proposed by NERSA in terms of amendment to 8(i)a.

NERSA

Section 14(4)

(4) The Regulator is not obliged to issue a licence and may issue only one licence to each applicant for any of the activities contemplated in subsection (3).

To be amended

Go with Eskom proposal rather.

Eskom

Section 15 – Conditions of licence

Section 15(a) is contradicting, guidelines can not be compulsory but directives are

Include "and consumers"

Agree. Also cover consumers together with customers.

Eskom

Subsection (15)(f): The licence condition must not include approval of the format and contents of an agreement between licence and a customer. This could limit the extent to which a licensee can negotiate agreements.

 

Provision stays

Eskom

Section 15(1)(h), on condition relating to the planning and responsibility for the supply of electricity, including emergency plans is not clear.

 

Delete

Eskom

Section 15(1)(l), the word construct should be deleted

 

agreed

NERSA

The period of validity of the license must not be prescribed by the Minister but should read as follows:

15 (1) (c) the period of validity of the license in accordance with section 21.

 

Agreed

NERSA

 

Section 15 (1)

Amend subsection (d) to read

(d) the setting and approval of prices, charges, rates and tariffs charged by licensees;

Amend subsection (e) to read "the methodology to be used in the determination of prices, rates and tariffs which must be imposed on licensees;

Amend subsection (z) to read

(z) any other condition prescribed by the regulator by rule in conformance with the purposes of this Act.

 

 

 

To be amended

 

To be amended

 

 

To be amended

 

 

Agreed.

 

 

agreed

 

Agreed.

Eskom

Section 16 – Tariff principles

Section 16(2), is too prescriptive. It precludes parties from entering into bilateral agreements and power purchase agreement without regulatory approval. The regulator must set out processes for approval of revenue and tariff structures

 

Disagree. The regulator must oversee power purchase and negotiated pricing agreements.

Cosatu

section 16.(1)

"(a) must enable an efficient licensee to recover the full cost of its licensed activities, including a reasonable [margin or return] surplus for recapitalization;"

"(c) must give [consumers] end-users accurate information regarding the costs that their consumption imposes on the licensee’s business;"

["(d) must avoid undue discrimination between customer categories; and]

"(e) [may] must permit the cross-subsidy of tariffs to certain classes of customers.

Powers and duties of licensees

Amendment to Section 22

 

 

 

 

 

Disagree. See definition of tariff (regulated environment) versus price (market environment)

NERSA

16. (1) A license condition determined under section 15 relating to the setting or approval of prices, charges, rates and tariffs and the regulation of revenues—

To be amended

agree. See Definition of tariff.

 

Eskom

Section 19 – Contravention of licence

The penalty of R2 million per day is too much and it should have a cap or the NER must notify licensee of any contravention of the licence and the R2 million per day penalty commences on the day of receipt of such notice.

 

amend

First part disagree. Regarding penalty, need to put in "or 10% of annual revenue, or whichever is higher". Agree regarding notice when penalty commences

NERSA

19. (1) If a licensee contravenes or fails to comply with a condition of a licence or any provision of this Act, the Regulator may serve a notice on such licensee in which licensee is directed to comply with the condition or the provision of the Act within a reasonable period specified in the notice.

Current provision in the ER Bill

19. (1) If it is alleged that a licensee has contravened or failed to comply with a licence condition or any provision of this Act, the Regulator may sit as a tribunal to decide on the allegation.

(2) If the tribunal finds that the allegation contemplated in subsection (1) is correct it may serve a notice on the licensee directing the licensee to comply with the licence condition or the provision of this Act, as the case may be, within a reasonable period specified in the notice.

 

Section 19 is not in line with the Gas Act. The State Law Adviser was of the opinion that the wording in the Gas Act assumes that a licensee is guilty before being proven guilty hence it was reworded

CENTLEC

National and local government should expropriate land for public interest

 

All expropriation must be dealt with in compliance with Expropriation Act and not various pieces of legislation.

The Expropriation Act also acknowledges expropriation by local government.

NERSA and Eskom

Section 20 – Order by court

20. The Regulator may by way of application on notice of motion apply to the High Court for an order suspending or revoking a licence [if the licensee has failed to carry out the activities for which the licence was granted] if there exists any ground justifying such suspension or revocation.

 

 

 

The regulator should be allowed to enforce certain orders immediately for a limited period while an application for an order of court is pending, to ensure security of supply, for safety reasons or for other reason in the public interest. [Eskom]

 

This provision was changed during consultation with the State Law Adviser. This was done to avoid general statements such as "if there exists any ground justifying suspension or revocation"

 

Agree

NERSA

Section 20(2) should be deleted "The court before which an application is made under subsection (1) may grant or refuse the application and may make such order as to costs and for the maintenance of the licensee’s services as it may regard as fair"

Include "The regulator may temporarily appoint another licensee in the place of the suspended or revoked license holder."

Agreed. However, add provision related to aftermath of license suspension/revocation in the interest of service continuity.

NERSA and Eskom

Amend Section 21 (Renewal of a licence) as follows"

21. (1) Any generation or transmission licence issued in terms of this Act is valid for a period of 15 years or such longer period as the Regulator may determine.

(2) Any construction, distribution or trading licences issued in terms of this Act is valid for a period determined by the Regulator.

(3) A licensee may apply to have his or her licence renewed.

(4)An application for renewal must be granted, but the Regulator may set new or different licence conditions.

(5) A licensee may not assign its licence to another party.

Current provision in the Bill

"21. (1) A condition relating to the period of validity of a licence may not be amended and a licensee who wishes to continue carrying on or being involved in any activity referred to in that licence must apply for a new licence prior to that licence lapsing."

Eskom

The section must be reworded to prevent unilateral amendment

To be amended

Agreed –Regarding licence validity periods, agree

Regarding construction, disagree.

 

 

 

 

 

 

Agreed.

Eskom

Section 22. Powers and duties of licensee

The word "delegate" must be clarified or deleted from section 22(1)

"22(1) A licence issued in terms of this Act empowers and obliges a licensee to exercise the powers and perform the duties set out in such licence and this Act, and no licensee may cede, transfer or [delegate] any such power or duty to any other person without the prior consent of the Regulator".

 

 

Delete "delegate"

NERSA and Eskom

Delete section 23 "A licensee must comply with the provision of the National Water Act, 1998 (Act No. 36 of 1998) for use of water resources –"

delete

Agreed

Eskom

Section 25 – Rights over streets

Section 23 of the Electricity Act should be retained, because it gives the licensee right to enter into private properties where electricity is supplied.

Transcribe from Electricity Act

Agreed

Eskom and City of uMhlatuze

Section 26 – Liability of licensee for damage and injury

This section 26 should be worded as follows:

"In any civil proceedings against a licensee arising out of damage or injury caused by induction or electrolysis or in any other manner by means of electricity generated, transmitted or distributed by a licensee, such damage or injury is deemed to have been caused by the negligence of the licensee, [unless there is credible evidence to the contrary] only if there is prima facie evidence to support presumption."

Section 26 –Liability of licensee for damage and injury, is unconstitutional

amend

agreed

NERSA

Section 27

Amend Section 27 to read as follows:

27. (1) In pursuit of the objects of this Act, the [State] Regulator may expropriate land, or any right in, over or in respect of land, on behalf of a licensee in accordance with section 25 of the Constitution and section 2 of the Expropriation Act, 1975 (Act No. 63 of 1975).

(2) The procedure to be followed in giving effect to subsection (1) must be prescribed by regulation.

(3) The Regulator may exercise the powers contemplated in subsection (1) only is if it satisfied that-

(a) a licensee is unable to acquire land or a right in, over or in respect of such land by agreement with the owner; and

(b) the land or any right in, over or in respect of such land is reasonably required by a licensee for purposes of this Act and will enhance the Republic’s gas infrastructure.

 

Expropriation should be done through the Expropriation Act

 

Disagreed. However, include Expropriation Act as amended.

 

 

Disagree. Delete (2) because Expropriation Act administered by another Minister

Comply with Expropriation Act.

Eskom and City of uMhlatuze

The Department of Public Works is currently amending the Expropriation Act, therefore it is suggested that section 19 of the Electricity Act be repealed upon the coming into effect of the amendment to the Expropriation Act.

 

Disagree

NERSA

(3) The Regulator must prescribe the procedure to be followed in the mediation and settlement of disputes and the fees to be paid to the regulator

To be amended

Agreed

 

Section 42 – Resolution of disputes

The regulator should be empowered to develop procedures to be followed in a mediation process

To be amended

Agreed, also change heading to read "Mediation by Regulator" and not "Resolution of disputes"

 

Section 43. Section 10(3) of the National Energy Regulator Act applies to every decision by the Regulator taken in terms of this Act, except where this Act provides otherwise or where the Regulator sits as a tribunal, in which case section 10(4) of that Act applies

To be amended

Delete "except where the Act provides otherwise"

Delete all, belongs in NER Act

Chamber of Mines

Mediation of dispute should be a function of the regulator

 

agreed

SECCP

Section 46: New Generation Capacity

The Bill should cover the renewable energy targets

 

Noted, the Bill -provides for the Minister to make regulation specifying targets for different primary energy resources

Institute of Zero Waste in Africa (IZWA)

Section 46 (1)(b) deletion

Section 46(1)(b) "The Minister may determine the types of energy sources from which electricity must be generated, and the percentages of electricity that must be generated from such sources" This provision might result in the Minister determining uneconomical, socially unacceptable or environmentally harmful.

No deletion

disagree. This provision aimed at creating opportunities for energy sources such as renewable energies

Institute of Zero Waste in Africa (IZWA)

Section 46(1)(c) –deletion

"The Minister may determine that thus produced may only be sold to a person or in a manner set out in such notice" This clause will disadvantage other players in the electricity industry.

No deletion

Disagree as indicated above

Rand Water

The Bill at section 46 (1) (b) provides that the Minister may on the advise of the Regulator determine the type of energy source from which electricity must be generated and the percentages that must be generated. According to Rand Water this provision might have an impact on them. Therefore the regulator should by a formal process and allow our inputs before it makes such a decision

No amendment

Clarify with Rand Water, as don’t believe that this adversely impacts them

Cosatu

Section 46.(1) –deletion

[require that new capacity must –

(i) be established through a tendering procedure which is equitable, is fair competitive and cost-effective;

(ii) provide for private sector participation."]

Section 46 (2) –deletion

"(a) undertake such management and development objectives as maybe necessary to facilitate [the tendering for] the development, construction and commissioning of such new electricity generation capacity;

"(b) purchase, hire [, acquire] or let anything [or acquire or grant any right for or on behalf of the State or for the purpose of transferring such a thing or right to a successful tender;"]

"(d) undertake such management activities as may be necessary or expedient f or the effective establishment and operation of publicly [or privately] owned electricity generation business"

Amendment to Section 46(3) –deletion

[(b) may facilitate the conclusion of an agreement to buy and sell power between a generator and a purchaser of that electricity.]

No amendment

The current borrowing status of the country will not be in a position to cover all the infrastructure investment required within a short space of time. Eskom is expected to refurbish most of their power stations and also build 70% of the new capacity. Taking into account that the electricity demand of the country is increasing while most of our power stations require refurbishment, it will be difficult for the state alone to raise all the required funding. It is against this background that IPPs are required to assist in catering for the growing demand

       

NER

Add a subsection to Section 46(2) to read:

e) Appoint an independent body to manage the procurement process of the new generation capacity

Rejected

 

Disagree. Minister’s prerogative

       

NERSA

Section 47 (4), (b), (c), (d), (e), (f), (g), j and (t) should be rules done by the regulator. This provisions must be moved to section 47 (1) and delete section 47(4)(w)

To be amended

Agreed. Harmonise under roles of Minister vis a vis role of Regulator

NERSA

Section 47(5), add subsection (1)(c) "and duly consider the comments received"

To be amended

Agreed

 

Section 47 – Regulations, rules, Guidelines, Directive and Codes ….

Section 47(2)(b) relating to codes of business practice and ethics should be deleted

delete

Agreed

Cosatu

Amendments: Regulations, Rules Guidelines, Directives And Codes Of Conduct And Practice

Amendment to Section 47.(1) re: The Regulator may, after consultation with –

(d) Advisory committees and end-user forums.
Amendment to Section 47(2) re:

(a) the relationship between licensees and [customers) end users

Amendment to Section 47(4) re:

  • We believe that clause (k) must be brought back to the current version;
  • (k) the inspection of and enquiry into the control and operation of any licensed and, registered [or reticulation- related] activity;
  • (I) national norms and standards that apply to [reticulation] generation, transmission and distribution:
  • "(p) the participation of the private sector in new generation activities:")
  • "(q) the setting of standards relating to health, safety, labour and the incorporation thereof into licenses or national norms and standards;
  • "(t) the [setting) development of a framework for the determination of the period of validity of licenses, criteria for the transfer and renewal of licenses, and the transfer or use of assets on a license lapsing, including the ownership thereof."

 

 

 

 

 

 

 

 

 

 

 

 

 

disagree

 

disagree

 

disagree

disagree

 

disagree

 

 

agree

 

 

 

 

 

 

 

 

 

 

 

 

Section 76

 

Section 76

 

Section 76

Government policy

 

OSH Act, Labour legislation deals with this

       

NERSA

Section 48(3) (a) is a conflicting requirement and it must be deleted.

"48(3)(b) the Regulator is obliged to issue substituting licences to the licensees concerned, in accordance with this Act, prior to such licences lapsing; and"

 

Agreed

NERSA

SCHEDULE II

Headings: The text [Section 8(2)] refers to the Schedules using roman numbers (I and II) while the Schedule headings use the numbers 1 and 2.

 

To be amended

 

Agreed

NERSA

SCHEDULE II

Propose, change item 1 to read:

1. Any generation plant constructed and operated for demonstration purposes only and not connected to an interconnected power system.

 

To be amended

 

Agreed

NERSA

Propose change item 2 to read:

2. Any generation plant constructed and operated for own use with rated capacity below 500 kW.

 

 

To be amended

Agreed

NERSA

Change item 3 to read:

3. Non-grid connected supply of electricity for own use.

 

 

To be amended

Agreed

NERSA

Add item 4:

Resellers that sells electricity to end consumers, provided that the price at which electricity is sold shall not be more than if the licensed distributor sold the electricity to such consumers

Don’t add

Difficult to monitor