1. Overview of the Electricity Regulation Bill

2. Content Overview of the National Energy Regulator Act (in brief)
Electricity Regulation Bill
Definitions
Functions of the regulator
Regulatory principles
Licences and registration
Contravention of a licence and order by court
Reticulation services
Non-compliance by municipalities
Resolution of disputes
Enquiries and investigations
general provisions
Exemptions

3. Energy Regulator Act The purpose of the Act is to:
establish a single energy regulator to regulate, electricity, gas and petroleum pipelines, and
Repeal sections of above Acts that provide for establishment of different separate energy regulators e.g. electricity regulator.
Constitution of the energy regulator
4 full time and 5 part time regulators appointed by Minister
Minister may determine their remuneration and allowances with the concurrence of the Minister of Finance

4. Other establishment issues
Disqualification and requirements regarding appointment of the energy regulators
Vacation of office and termination of appointment
Meetings of the Energy Regulator
Duties of the Energy Regulator

5. Other establishment issues
Decisions of the Energy Regulator must be in line with the Electricity Act, Gas Act and Petroleum Pipelines Act
Personnel of the Energy Regulator
Funds of the Energy Regulator

6. Electricity Regulation Bill

7. Electricity Regulation Bill Definitions
Reticulation – means trading by a municipality and the distribution of electricity by a municipality to the community within its area of jurisdiction
Community – means domestic, commercial and light industrial customers

8. Definitions
Commercial and light industrial customers – means manufacturing, mining or agricultural customers who purchase less than 5 GWh at a contiguous site
exclude water pumping schemes and traction substations
other customers as may be determined by the Minister

9. Functions of the Regulator Chapter 2 {section 4}
The regulator is empowered to:
issue licences relating to transmission, generation, distribution, import and export and trading in electricity
impose penalties for non-compliance
act as a mediator on settlement of disputes; and
register generators in the ESI.

10. Licences and registration Chapter 3 {section 7 to 10}
The bill outlines activities to be carried under licence such as import or export, trading, generation, transmission and distribution functions.
Section 9 of the bill gives the Minister power to exempt any of the activities from holding a licence under the advise of the regulator.
The bill provides for payment of licence and registration fees by applicants
The regulator can determine activity that requires a license and registration.

11. Licences and registration (cont.) Chapter 3 {section 11 to 18}
The regulator is empowered to deal with transparency of licence applications and procedures. An applicant for a licence is required to make a notice of application in a newspaper.
The regulator will approve tariffs for generation, transmission and distribution excluding reticulation customers.
Section 15 of the bill outlines licence conditions relating to generation, transmission and distribution

12. Licences and registration (cont.)
The regulator is empowered to:
suspend, remove certain conditions or amend licence conditions (section 17)
revoke a licence on application if the licensed activity is no longer needed (section 18)

13. Contravention of licence and order by court Chapter 3 { section 19 and 27}
The regulator sitting as a tribunal may impose a penalty not exceeding R2m per day if failed to adhere to the licence conditions (section 19(4)) or revoke a licence through an application to the High Court.
The high court may grant or refuse the application.
The bill provides for licensees to bear consequences of negligent actions on their part, which result in damage or injury to third parties.

14. Reticulation services- Chapter 4 Powers and duties of municipalities {Part 1 and 2 of the Bill (section 28 to 31)}
The Bill recognises that electricity reticulation is a municipal competence by allowing municipalities to set tariffs.
Only municipalities have the right to reticulate electricity, licences issued under the Electricity Act of 1987 shall expire as soon as this Bill comes into operation.
The regulator responsible for providing national norms and standards for reticulation services e.g. the tariff setting framework

15. Key performance indicators {section 32 to 36}
The Minister may prescribe key performance indicators for municipalities.
The regulator will monitor the performance and compliance of municipalities.
Every municipality has an obligation to provide information to the regulator as provided in this Act.

16. Compliance & non-compliance by municipalities {section 37 to 40}
The regulator must in writing request the municipality to comply within a specified period.
The regulator must inform the Minister and the MEC of any request for compliance.
If municipality fails to comply as requested, Minister may request the Minister of Provincial and Local Government to make or revoke an authorisation made in term of section 84 of the Municipal Structures Act
The Bill also provides for intervention by the relevant MEC

17. Resolution of disputes (Chapter5)
The regulator can be requested by the parties to be a mediator in settling disputes.
The regulator shall not be obliged to settle disputes but if requested to do so, its decision shall be binding on any party concerned
The regulator may appoint suitable person(s) to mediate in settling disputes on its behalf.

18. Resolution of disputes (cont)
The Minister shall prescribe the procedure to be followed in mediation and the settlement of disputes and fees to be paid in terms of section 42 (3)

19. Enquiries and investigations (Chapter 6)
The regulator shall on receipt of complaint related to electricity supply appoint a person to make enquiries and report to the regulator, section 44.
After receipt of the report, the regulator may institute a formal investigation. The regulator may refer the outcome of the investigation to the Attorney-General of the area for his or her consideration.

20. General provisions (Chapter 7)
Any agreement in contravention of this Act or constitution may be declared to be unenforceable between the parties by a court of law.
The regulator may after consultation with affected parties, make guidelines, codes of conduct and practice or make rules by notice in the gazette relating to the licensee and the customers.

21. General provisions (cont.)
In section 45, the Minister may by notice in the Gazette, make regulations regarding licences, registrations, the form and the manner of applying for licences, the publishing of advertisements by licensee and etc.
Before promulgating regulations contemplated above, the Minister must consult with the regulator and invite public comments on such regulations.
The Minister is also empowered to procure Independent Power Producers.

22. General provisions Repeal of laws and savings
NER contemplated in section 2 of the Electricity Act 1987, is repealed.
Licences issued by the NER in terms of the provision of Electricity Act shall continue in force as if they were issued in terms of the provisions of this Act.
This Bill repeals and replaces the Electricity Act

23. Schedule 2: exempted from obligation to apply for and hold a licence
Any generation plant built for demonstration only is exempted from holding a licence.
Any generation plant constructed and operated for own use.
Non-grid connected supply of electricity except for commercial use

24. Schedule 1: Repeal and Amendment of laws
The bill repeal the following Acts:
 whole Electricity Act, 1987 (Act No. 41 of 1987) except section 5B
amendment of schedule 3 of Kwa Zulu and Natal Joint Services Act, 1990 (Act No. 84 of 1990)