Council of Ministers Energy Regulation No. 447-2019

PART FIVE

ENERGY EFFICIENCY AND CONSERVATION

CHAPTER ONE

LICENSING OF ENERGY EFFICIENCY AND

CONSERVATION AUDIT, CONTRACTING ORCONSULTANCY SERVICE AND FUND

  1. Submission of Application for License

1/No person shall undertake energy efficiency and conservation audit, contracting or consultancy service without being issued a license from the Authority.

2/Any application for energy efficiency and conservation, audit, contracting or consultancy license to be submitted to the Authority shall contain the following:

  1. a) address of the applicant and copy of his

identity card;

  1. b) as appropriate, certificate of competence of recruited employees;
  2. c) as appropriate, degree, diploma or

certificate of competence acquired and

directly relevant experience; and

  1. d) other relevant information the Authority may determine by a directive.

3/An application for a license shall be accompanied by a non-refundable application fee prescribed under the Service Fee Regulation for examining whether the license should be issued or not and to determine the grade of the license to be issued.

4/The Authority may, as may be appropriate, give a written or practical examination to evaluate the competency of the applicant and grade of the license, following the verification of information submitted in accordance with to sub-Article (2) of this Article.

5/The Authority may issue directive regarding evaluation and grading requirements of the license referred under sub-article (4) of this Article.

6/The Authority shall issue the license upon payment of the prescribed fee after verifying that an applicant has fulfilled the requirements of license.

7/If the Authority decides that the information supplied by the applicant is inadequate, it shall, notify the decision to the applicant in writing.

36.Registration of Application for License Request

When the application lodged for license is complete in accordance with Article 35 of this Regulation, it shall immediately be registered in the order it is received in the application registration book maintained in the office of the Authority for such purpose and each applicant be given a receipt indicating the date and number of registration.

37.Validity Period and Renewal of License

1/ A license issued pursuant to Article 35 of this Regulation shall be:

a)valid for a term of 2 (two) years starting from the date of its issuance;

  1. b) renewed every two years;
  2. c) submitted for renewal at least 15 (fifteen) days prior to its expiry date.

2/ Any person whose license has been expired due to failure to renew pursuant to sub-article (1) (c) of this article may apply for renewal within 90 (ninety) days following the expiry date; and the Authority shall renew upon payment of delayed renewal fee specified under Service Fee Regulation.

3/ Any licensee who wants to renew his license shall produce a complete report of the activity performed on the same license year.

4/ Any juridical person wants to renew its license shall produce to the Authority a valid certificate of competence of its employees.

  1. Replacement of License

1/Any licensee may, upon the payment of the prescribed fee, apply to the Authority for the replacement of the license which has been lost or destroyed.

2/The Authority, after receiving application pursuant to sub-article (1) of this Article, shall issue a replaced license upon payment of the service fee prescribed in the Service Fee Regulation.

  1. Suspension or Revocation of License

/ A license of energy audit, consultancy or contracting may be suspended due to one of the following reasons:

a)engaging in activity beyond authorized in the license issued by the Authority; or perform below standard;

b)causing damage on life or property of service user due to substantial safety and quality problem of the work performed;

  1. c) failure to submit a complete report as required pursuant to this Regulation or submission of false report or failure to maintain appropriate documentations;

d)intentionally obstruct or create obstacles in the regulatory activity of the Authority;

e)transferring license issued by the Authority to a third party without the consent of the Authority.

2/A license of any person may be revoked, if the person fails to rectify the problem entailed suspension within the period given to rectify it, or commits another problem for the second time within two years which may entail suspension.

3/A license issued under this Chapter shall be revoked, without prejudice to the right of heirs, if the licensee individual dies or where the licensee business organization is liquidated or declared bankrupt.

4/The Authority shall, before taking the suspension or revocation measure, issue written notice to the licensee by clearly stating the grounds of suspension or revocation of the license.

5/The licensee received a notice pursuant to sub-article (4) of this Article shall, within 15 (fifteen) days, submit written objection or defence statement to the Authority by clearly stating the reason why the license shall not be suspended or revoked.

6/If the Authority finds the defense or objection submitted by the licensee not sufficient enough or if the licensee failed to submit any defense or objection within 15(fifteen) days, it shall partly or fully suspend or revoke the license and communicate the licensee in writing within 15(fifteen) days after such action is taken; as appropriate may notify its action public.

40.Service Fee

The rate of service fees to be paid for the Authority for examination of application, administration of theory and practical examination; issuance, renewal or replacement of energy efficiency and conservation audit, contracting or consultancy services license shall be prescribed in the table 1 annexed with this regulation.

  1. Rights and Obligations of Licensee

/ Any licensee who has been issued license pursuant to Section Five of this Regulation shall have the following rights:

  1. a) perform activities bestowed by virtue of the license throughout the country;
  2. b) request and obtain data necessary to perform the licensed activity; and
  3. c) receive payment for adequate service rendered pursuant to the license.

2/Any licensee who has been issued license pursuant to Section Five of this Regulation shall have the following obligations:

a)undertake energy efficiency and conservation activities in accordance with the provisions of the Proclamation, this Regulation, directive to be issued to implement this Regulation and terms and conditions of the license;

b)render service as per the agreement reached with the client;

c)submit energy audit report to the client within a month after exit conference undertaken with the client;

d)promptly address customers complaints;

  1. e) provide appropriate guidelines and instructions to customers on energy efficiency and conservation;
  2. f) maintain files and records of employees, transaction, finance, and others at least for 5(five) years;
  3. g) make available records to the Authority for inspection;
  4. h) provide proper training to its employees; and
  5. i) surrender the revoked license to the Authority.

CHAPTER TWO

PROMOTING AND REGULATING ENERGY EFFICIENCY AND CONSERVATION

  1. General Principles

1/The Authority shall, for implementing energy efficiency and conservation regulatory measures, give priority for awareness creation focusing on the benefits of such measures.

2/The Authority shall implement energy efficiency and conservation regulatory measures phase by phase based on the characteristics and the benefit it brings

43.Inspection of Licensees’ Energy Efficiency and Conservation Activities

1/The Authority shall assign inspection officer to supervise the activities of energy audit, energy efficiency and conservation contracting or consultancy services of licensees.

2/ The inspection officer assigned by the Authority, up on showing his identity card issued by the Authority, at any working hours, may inspect or supervise the activity of energy audit, energy efficiency and conservation contracting or consultancy service of licensees.

3/The inspection officer while conducting supervision, may require the licensees to submit documents, records, tools, any other informations related to works of energy audit, energy efficiency and conservation contracting or consultancy services which are necessary for the supervision task.

4/The inspection officer shall submit a written report to the Authority on the supervision activity he has conducted pursuant to sub-article (2) and (3) of this Article.

5/The Authority shall issue a written notice to the licensee in order to take appropriate corrective measure; if the supervision made pursuant to sub-article (2) and (3) of this Article shows that the activity of energy audit, energy efficiency and conservation contracting or consultancy service of the licensee violates any of its obligations provided under this Regulation and directive issued to implement this Regulation.

6/If the licensee fails to take corrective measures within the period determined in the notice, the Authority may, as appropriate, suspend or revoke the license.

44.Reporting

1/Any person who has been issued license to undertake energy efficiency and conservation activities shall report annually to the Authority about its activity and accomplishment.

2/The Authority may through directive prescribe appropriate form to be followed for submitting energy efficiency and conservation report.

CHAPTER THREE

ELECTRICAL EQUIPMENTS AND APPLIANCES

  1. Energy Efficiency Performance Standard

In accordance with Article 4(6) of the Proclamation, the Authority shall cause to set the minimum or maximum energy efficiency performance standard for equipments and appliances.

  1. Electric Equipment’s and Appliances

1/No. manufacturer, importer, wholesaler or retailer of electric equipment and appliance shall produce, import, wholesale or retail, lease or put to use in any way in the Ethiopian market for circulation an electric equipment and appliance which do not comply with mandatory national standards of energy efficiency or do not have certificate of efficiency.

2/Any manufacturer or importer of electric equipments and appliances for which mandatory national standard of energy efficiency have been developed shall obtain certificate of competency pursuant to a directive to be issued to implement this Regulation ,from the Authority before manufacturing or importing of such electrical equipments and appliances.

3/The procedure for issuance of certificate of competency for electrical equipments and appliances shall be determined in a directive to be issued implement this Regulation.

4/The Authority may notify the relevant licensing authority to take necessary measures on those manufacturers, importers wholesalers or retailers who fail to comply with the required energy efficiency labels or minimum energy efficiency performance standards.

47.Labeling of Electrical Equipments and Appliances

1/No person shall manufacture, import, wholesale or retail any electrical equipment and appliance that has not been labeled for which mandatory labeling standard is required.

2/The label shall contain energy efficiency of electric equipment and appliance, and other appropriate informations to be prescribed by directive to be issued to implement this Regulation.

3/The label shall be affixed in Amharic and English language and placed in a conspicuous position on every electrical equipment and appliance and their packages.

4/No person shall remove, deface, obscure or alter any energy efficiency label affixed according to this Regulation on energy efficiency of electric equipment and appliance or its package before such labeled equipment and appliance is sold to the first retail purchaser or leased to the first lessee.

5/Any person which indicated under sub-article (1) of this Article shall be responsible for the accuracy of the information on the energy efficiency labels.

6/The Authority may issue directive on the form, content, type, symbol and procedure of labeling of energy efficiency of electrical equipments and appliances and their package.

  1. Energy Efficiency Testing of Electrical Equipments and Appliances

1/The Authority may, as appropriate, require any manufacturer or importer of electrical equipment and appliance to make available samples identified by the Authority, at such place the Authority may specify for testing of their energy efficiency and the manufacturer or importer shall have obligation to avail and comply with this request.

2/Without prejudice to sub-article (1) of this Article, the Authority may directly purchase samples of its choice from the Market and test their energy efficiency.

3/Where the test conducted pursuant to sub-article (1) of this Article does not involve destructive testing, those samples which have passed the test shall be returned to the manufacturer or importer.

4/Where the testing procedure involves destructive tests where after test procedure conducted, the samples may not fit to use, such samples may not be returned to the manufacturer or importer unless requested otherwise.

5/The Authority may dismantle and examine any electrical equipment and appliance made available pursuant to sub-article (1) of this Article and may conduct such tests as the Authority considers reasonably necessary to determine its energy efficiency; provided, however that the Authority may in advance, as appropriate, notify the test procedures to the manufacturer and importer.

6/ The Authority may enter into an agreement with an appropriate body for testing the energy efficiency of the electrical equipments and appliances.

CHAPTER FOUR ENERGY EFFICIENCY AND

CONSERVATION IN INDUSTRIES

49.General Principles

1/ Energy efficiency and conservation activities in industries may include the following:

  1. a) prevention of energy loss;
  2. b) improvement in combustion or conversion of primary energy sources;
  3. c) recycling of energy wastes;
  4. d) substitution of one type of energy by another;
  5. e) more efficient use of electricity through improvements in power factors;
  6. f) reduction of maximum power demand during the period of the electricity system’s peak demand;
  7. g) using of appropriate standard equipment’s; and
  8. h) use of energy-efficient machinery or equipment as well as the use of operation control systems that contribute to energy conservation and through other approaches.

2/ Without prejudice to the provisions of sub-article (1) of this Article, additional means of energy efficiency and conservation mechanisms may be determined in a directive to be issued hereunder.

50.Designated Industries

1/The Authority may designate industries based on their type, quantities of energy consumption, or methods of energy utilization through directives to be issued to implement this regulation.

2/The owner of the designated industry, in accordance with the directive, standard, criteria and procedures to be issued, shall:

  1. a) conserve energy consumption of the industry;
  2. b) periodically audit and analyze energy utilization of the industry;
  3. c) report energy profile of the industry to the Authority; and
  4. d) enter voluntary agreement;

3/The Authority may give instructions regarding measures to be taken by the designated industry to improve energy performance which the industry shall put into effect.

  1. Obligations of Owner Designated Industry

1/The owner of any designated industry, in accordance with Article 19 (4) and (5)and Article 22 (4) of the Proclamation shall have the following obligations:

a)to assign at least one qualified person who is in charge of full responsibility to the designated industry with regard to energy efficiency and conservation measures;

b)to submit report on energy consumption, production, and energy efficiency and conservation measures to the Authority;

c)to keep records of report on energy consumption and installation or modification of machinery or electrical equipments and appliances that affect energy consumption energy efficiency and conservation, in compliance with the criteria and procedures to be prescribed in the directive to be issued to implement this Regulation;

  1. d) keep the records related to energy for

a minimum of 5(five) years;

  1. e) to audit and analyze operations of the designated industry to achieve such targets and plans, for energy efficiency and conservation, in compliance with the criteria, procedures and schedules; and
  2. f) to report to the Authority about the industry with 180 (one hundred eighty) days after it has been designated.

2/ The Authority may issue a directive that specifies the forms, criteria, procedures and schedules for the proper implementation of sub-article (1) (b), (d) and (e) of this Article.

52.Voluntary Agreement

1/ For a sustainable improvement of energy efficiency; the Authority may negotiate, and sign a voluntary agreement, and execute same, in accordance with Article 22 of the Proclamation, with the designated high energy consuming industries or with energy consuming electrical equipments and appliances manufacturers or importers, as may be appropriate, concerning relevant energy consuming facilities or appliances or equipments.

2/ The voluntary agreement shall take in to account the energy efficiency improvement measures being implemented at energy consuming facilities belonging to the same designated industries and include definite, relevant measures to improve energy efficiency.

3/ The voluntary agreement shall indicate the expected result of each of this improvement measure, expressed as a percentage of energy efficiency improvement per annum.

4/ The owner of any designated industry shall submit periodic report, the frequency of which as defined in the agreement, to the Authority specifying the proper implementation of the voluntary agreement, achievement of energy efficiency in percentage and any other limitations encountered.

5/ The Authority may by requesting additional informations or physical inspection can confirm the accuracy of such a report.

6/ In accordance with Article 22(4) of the Proclamation, where such voluntary agreement is, for any reason not sufficient, failed to be implemented the Authority could impose administrative fines.

  1. Energy Management Unit

1/ The owner of a designated industry, shall establish energy management unit and assign professionals staffs at the designate industry to take full responsibility with regard to the energy program.

2/ The energy management unit staff shall be qualified in electrical or mechanical or in any other relevant field of engineering and competent to undertake the responsibilities of energy efficiency and conservation programs.

3/ The energy management unit shall have the following responsibilities:

a)periodically maintain and inspect the efficiency of machinery and equipment that consumes energy;

  1. b) improve energy consumption in line with the principle of energy efficiency and conservation;

c)oversee record keeping of information so that the supervisor assigned by the Authority or relevant licensee may inspect and verify the accuracy of such records;

d)assist in setting the goals and plans for energy efficiency and conservation; and

e)verify the result of the inspection or evaluation.

  1. Dissemination of Information

The Authority may utilize educational institutions, federal, regional states and local government entities, non-governmental organizations, utilities, trade organizations, professional associations and societies to disseminate energy efficiency information and any other relevant information.

CHAPTER FIVE ENERGY EFFICIENCY AND

CONSERVATION IN BUILDINGS

  1. Energy Efficiency and Conservation Regulatory activities/actions for Buildings

1/Energy efficiency and conservation in
building may be regulated through energy efficiency and conservation codes,
standards or labels, or through a combination of any or all.

2/Building codes shall take into account the energy efficiency and conservation measures to be achieved either during construction or maintenance period.

  1. Methods for Energy Efficiency and Conservation in Buildings

1/ Energy efficiency and conservation in building may include any one or more of the following methods:

) reduction of heat from the sunlight that enters in to the building;

  1. b) Use of efficient air conditioning, maintaining room temperature at appropriate level;
  2. c) use of energy efficient construction materials.
  3. d) efficient use of natural light in the building; or
  4. e) installation and use of machinery, equipment, and materials that contribute energy conservation in the building;

2/ Notwithstanding the provision of sub-article (1) of this Article, additional methods of energy efficiency and conservation in building may be provided through directive to be issued to implement this Regulation.

57.Designated Buildings

1/The Authority may designate buildings based on their type, size, quantity of energy use, or method of energy utilization through directive to be issued to implement this Regulation.

2/The directive to be issued by the Authority in accordance with sub-article (1) of this Article shall contain the following:

  1. a) the overall thermal transfer value and energy consumption of the building.

b)criteria, procedures and conditions for estimation of the thermal transfer, value of construction materials and the overall thermal transfer value, as well as energy utilization of the building; and

b)Standard for air conditioning, hot water generation and space heating systems of the building.

3/ The owner of the designated building shall conserve energy, audit and analyze energy consumption of the building in accordance with the criteria and procedures indicated under the directive to be issued pursuant to sub-article (2) of this Article.

4/ Any designated building under sub-article

(1) of this Article shall undertake an energy audit once every three years and such an energy audit shall be conducted by licensed energy auditor, contractor or consultant.

CHAPTER SIX ENERGY EFFICIENCY AND CONSERVATION FUND

  1. the Fund will have the following purposes;

1/ The Board, based on energy audit report, and initial studies and reports may, avail finance from the Fund, on government commercial bank interest or low interest or free from interest, partial or full loan or partial or full credit risk guarantee or on cost sharing basis for activities related to energy efficiency and conservation such as:

a)short, medium, and long term energy efficiency and conservation project implementation;

b)consultancy; energy auditing; research and development; demonstration projects; and capacity building activities with regards to efficiency and conservation; and

c)information dissemination, promotional and related public relation activities with regards to efficiency and conservation.

2/ The Authority pursuant to sub-article (1) of this Article shall issue requirements by a directive regarding utilization of the Fund.

  1. Power and Duties of the Board

1/ Without prejudice to Article 5 of the Proclamation the Board shall have the following power and duties to:

  1. a) formulate policies to generate money for the Fund;
  2. b) determine the allocation of the Fund based on objectives;
  3. c) determine the annual target of the Fund;
  4. d) determine the Fund to be used as a revolving loan to be collected thereafter; and
  5. e) issue directive with respect to the criteria and procedures of making loan and subsidy request from the Fund and apportioning requirements.

2/ The Authority shall undertake the day-to-day routine activities in relation to the administration of the Fund.

3/The Board shall monitor from time to time effective utilization of the Fund for the purpose stipulated under Article 23(2) of the Proclamation.

  1. Administration of the Fund

1/The Energy Board shall issue a directive for the administration of the Fund.

2/The Energy Board shall select and approve the nominated trust agent that administers the Fund to be secured from different sources.

3/The contributions for the Fund shall be paid to a trust agent, following notification to the Energy Board.

61.Collection of Fund

1/ The Fund shall be collected annually from the specified source stated under Article 23

(3) of the Proclamation has to be deposit to the selected trust agent.

2/ The Board shall ensure the timely collection of Fund and its deposit to the trust agent.

62.Reporting on Fund Utilization

Those beneficiaries obtain loan or subsidy from the Fund for the purposes provided under this Regulation shall submit quarterly, biannual and annual report to the Board based on the forms prescribed by the Authority.

  1. Responsibility of the Trust Agent

The Trust Agent shall have the following responsibilities:

1/receive and deposit the income accrued from various sources of Fund as provided under Article 23 (3) of the Proclamation;

2/loan fund money for the energy efficiency and conservation activities upon the order of the Board and shall collect loan payments;

3/In accordance with the agreement ‚prepare financial statement quarterly, biannual and annual revealing the revenues and expenditure of the Fund and submit it to the Board.

4/The trust agent shall by agreement carry out other additional activities given by the Board.

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