Council of Ministers Energy Regulation No. 447-2019

PART THREE RIGHTS AND OBLIGATIONS

21.Right of Licensee

Any licensee shall have the following rights:

1/seek approval, on its own discretion, of investment which is below the amount indicated under Article 22(9) of this Regulation;

2/collect revenues in accordance with approved tariffs;

3/enter into the premises of the customer, in accordance with Article 16 of the Proclamation, to undertake electricity supply operations;

4/disconnect electricity service of customers in accordance with Article 12 of the Proclamation; and

5/ examine electric installations of the customers.

22.Obligations of Licensee

Without prejudice to Article 10 of the proclamation Any licensee shall, have the following obligations:

1/carry out electricity supply operations in accordance with the provisions of the Proclamation, this Regulation and directives issued to implement this regulation and conditions of the license;

2/fulfill facilities in accordance with the Grid Code and other related procedures to be issued by the Authority, in order to commence activities licensed;

3/keep all employment, financial, commercial and other books and records as well as records of electricity operations at least for 10 years;

4/submit plan, information and reports as determined in this Regulation and directive and procedures issued hereunder;

5/ submit construction plan and report; 6/submit evidence to the Authority that it

has introduced appropriate policies, procedures and management systems for the efficient commercial operation of its business and that allow compliance with all relevant Regulation of health and safety of the employees; the public, environment and natural resources;

7/take appropriate measures in order to protect human life, property, the environment and natural resources;

8/not exploit its monopoly position held in the supply of electricity to maintain high tariffs or to avoid the introduction of cost efficiency measures;

9/unless otherwise agreed to in a power purchase or other agreement approved of or acceded to by the Authority, seek prior approval from the Authority for all investments that exceed a value to the equivalent of 10% (ten percent) of the regulated asset;

10/ provide appropriate training for its employees;

11/ collect revenue in accordance with the power purchase agreement and tariffs approved by the appropriate organ;

12/ comply with all notices issued by the
Authority; and

13/ surrender the revoked license to the Authority within one month time.

23.Rights and Obligations of Generation Licensee

1/ Without prejudice to article 10 (3)(a) of the proclamation, a generation licensee shall have the following rights:

a)connect the generating plant stated in the license and sell electricity to the transmission system or supply network stated in the license;

b)as stated in the license and in accordance with this Regulation and directive to be issued, sell electricity in spot markets in Regional and International market network;

c)charge the rates as set out in a power purchase agreement approved by the Authority;

d)generate electricity from any energy sources in accordance with the investment proclamation and other relevant laws; and

e)supply electricity to transmission or distribution and sale licensee on the basis of tariff approved by appropriate organ or power purchase agreement pre-approved by the Authority and collect revenue.

2/The generation licensee shall have the following obligations:

a)start activity within the time set and pre-conditions specified in the license;

b)provide a quality electricity for the transmission grid or supply network;

c)sell electricity only to the entity set out in its license;

d)comply with the technical condition of connection to the transmission grid or supply network stated in the license or conditions specified under this Regulation and directive to be issued;

  1. e) take appropriate measure on environmental effects of its activities under the license;
  2. f) comply with this Regulation and the standards, conditions and codes applying to the license;
  3. g) comply with other obligation that the Authority may set out in the license.
  4. h) generate electricity and provide other important ancillary services based on the demand of the transmission or distribution and sale licensee;
  5. i) maintain efficiency and reliability of the generation plant; and protect the public and employee safety; and

j)comply with the relevant grid and performance codes to achieve the targets contained in the grid and performance codes with time lines as may be set in agreement with the Authority.

  1. Rights and Obligations of Transmission Licensee

1/ Without prejudice to article 10 (3) (a) of the proclamation of the proclamation, the transmission licensee shall have the following rights:

  1. a) to operate the transmission grid stated in the license; and if stated in the license, to connect the transmission grid to another transmission grid, distribution network or any transmission voltage selling point stated in the license.
  2. b) to transmit electricity within the license area.
  3. c) to transfer electricity to the distribution and sale licensee at transmission tariff approved by the appropriate authority; and
  4. d) in accordance with Article 14 (2) of the Proclamation, participate in cross boarder import or export of electricity with pre signed power purchase agreement or at the spot market where feasible and do not compromise on national demand;
  5. e) to request the generation licensee to provide necessary ancillary services and purchase such services to secure the sustainability, safety and reliability of the interconnected system.

2/ The transmission licensee shall have the following obligations:

a)operate, maintain, repair and protect its transmission grid to ensure the adequate, economic, reliable and safe transmission of electricity;

b)ensure, as far as technically and economically practicable, that the transmission grid is operated with enough capacity to provide network services;

c)comply with standards, conditions and codes applying to the licensee according to this Regulation and as well as directive to be issued to implement this regulation;

d)operate the national grid, in coordination with, where appropriate, transmission grids of other countries to which it is connected directly or indirectly.

e)maintain and develop the transmission network to make it economical and thereby ensure its efficiency, reliability and sustainability; and safe for public and employees;

f)prepare power plant indicative plan in order to meet the demand of electricity at an economically justified level of reliability;

g)based on plan, make compatible the capacity of transmission network with that of the demand and make ready for reliable service provision;

h)comply with the relevant Grid or Performance Codes and achieve the targets within the time lines as may be set by the Authority; and

i)plan for reinforcing and expanding the transmission network in order to augment new generation facilities and pockets of demand at the margin of the network.

25.Rights and Obligations of Distribution and Sale Licensee

1/Without prejudice to article 10 (3)(a) of the proclamation, the distribution and sale licensee shall have the following rights:

a)distribute and sale electricity with an exclusive right within its license area in the National Grid;

b)distribute and sale electricity without having exclusive right to the demand outside exclusive license area in the National Grid;

  1. c) collect fees from customers for the power supplied to them and other related services provided on the bases of tariff approved by the appropriate organ;
  2. d) purchase electricity from generation or transmission licensee according to this Regulation and Directive to be implement this regulation;
  3. e) disconnect power, whenever the customer violates his obligation specified in the Proclamation and/or the contractual agreement;
  4. f) participate in import or export of electricity in accordance with the provisions of the appropriate license, if viable and do not compromise supply to the national demand; and
  5. g) to supply electricity by using the supply network within the license area when the license is an, exclusive distribution and sale license.

2/A licensee may supply electricity to the applicant by connecting the network up to the non-exclusive license area, if applicants premises are outside of the licensee’s distribution and sale area.

3/ Sub-Article (2) of this Article shall apply only if:

) the premises of the applicant is not within another distribution and sale licensee area;

  1. b) the applicant premises is in another distribution and sale licensee’s area and the other distribution and sale licensee claims that it is not technically and economically practicable for it to connect and supply electricity to the applicant; or the distribution and sale licensee agrees to connect and supply; and
  2. c) the supply of electricity is not likely to impair the licensee’s capacity to fulfill its obligation to connect and supply in its own distribution and sale area.

4/ without prejudice to article 10 of the proclamation the distribution and sale licensee shall, have the following obligations:

  1. a) supply electricity to customers according to the agreement;

b)respond promptly to connection demand of new customers within its license area;

c)notify customers before 72 (seventy-two) hours in advance of planned outages;

  1. d) provide customers with the necessary guidance on the use of electricity;

e)develop and maintain the distribution system to ensure its efficiency and reliability; and safety of public, employees and customers;

  1. f) achieve the targets contained in the Grid Code and service performance standard agreements reached with the Authority within a reasonable time specified in the contract;
  2. g) respond promptly to customer complaint;
  3. h) record customers complaints and prepare them for inspection by a third party;
  4. i) establish a forum for hearing and resolution of complaints of customers;
  5. j) plan for reliable service by upgrading the distribution network capacity that commensurate with demand;
  6. k) plan for network reinforcement or expansion in anticipation of connection with new power generation facilities;
  7. l) implement energy efficiency and conservation programs proven to be economically beneficial, and obtain prior approval of the Authority to secure financial support for such programs;
  8. m) issue correct and clear receipts based on accurate meter reading; and

n)facilitate to customers appropriate prepayment meter management and billing system.

5/ The licensee shall have an obligation to supply electricity to the possessor of a premise, if the possessor applies for the provision of electricity service to the premise and such premise is within the licensee’s distribution and sale area.

6/ The licensee shall supply electricity within 2 (two) months of receiving the application from the customer; provided, however, where there is sufficient reasons for not supplying it shall notify the customer in writing.

7/ When the licensee decides to supply electricity to the applicant it shall conclude a contract with the applicant.

8/ A licensee shall construct, operate, maintain and protect its supply network in a way that ensure the adequate, economic, reliable and safe connection and supply electricity to its customers.

9/ A licensee shall consider both demand side and supply side options to provide, as far as technically and economically practicable to ensure efficient supply of electricity.

10/A licensee shall comply with all standards, protocols and codes applying to the licensee under this regulation and well as directive to be issued to implement this regulation and have the responsibility of network control of its supply network.

26.Right and Obligation of Import and Export Licensee

1/Without prejudice to article 10 (3) (c) of the proclamation import and export Licensee shall have the following rights:

  1. a) to transmit import or export electricity by using the national Grid in accordance with the terms and conditions specified in the License and as per the transmission service agreements as may be applicable while importing and exporting .electricity;
  2. b) to have an access to national transmission grid on non discriminatory bases in accordance with the terms and conditions specified in the License and as per the transmission service agreements as may be applicable.

2/ The import or export licensee shall have the following obligations:

  1. a) To comply with national distribution and transmission grid code as may be applicable;

b)To comply with the regional Grid code, where there is an approved regional Grid code.

  1. Rights and Obligations of Customer

1/ Customer shall have the following rights:

a)get reliable, economical and safe electricity services from licensees;

b)submit any complain related to electricity services, as appropriate, to the licensee or the Authority in accordance with procedures to be issued by the Authority; and

c)obtain timely and proportional compensation for any damage on equipments and appliance caused by services not in line with the service standard.

2/ Customer shall have the following obligations:

  1. a) comply with notices and instructions on the use of electricity;
  2. b) cooperate for the electrical works to be performed within the premises of the customer;

c)not to use electricity for the services other than specified in the contract;

  1. d) pay for the electricity consumed;

e)promptly notify the licensee of any irregularities of electricity supply; and

f)comply with the relevant provision of customers’ charter issued by the licensee and approved by the Authority.

28.Rights and Obligations of Holder of Certificate of Competency

1/ Any holder of certificate of competency shall have the following rights:

  1. a) to undertake the permitted electrical work activities within the country in accordance with certificate issued.
  2. b) within 15 (fifteen) days from the date of fulfilling the necessary requirements specified by this regulation get or renewal or replacement of certificate of competency;

/Any holder of certificate of competency shall have the following obligations:

a)undertake its certified activities on a prudent operating practice and with acceptable standards;

  1. b) comply with the code of conduct issued by the Authority;
  2. c) not transfer the certificate of competency

to any other person for any purpose;

  1. d) return immediately the revoked licence to the Authority.

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