Council of Ministers Energy Regulation No. 447-2019

PART SEVEN MISCELLANEOUS PROVISIONS

76.Notice and Fine

1/Where it is ascertained that the generation, transmission, distribution and sales licensee is not providing service as per the determined service standard, the Authority shall issue written notice to the licensee and give sufficient time for corrective action.

2/When gaps in the implementation of mandatory energy efficiency standards prevails; or services fall short of the standard issued or the generally accepted standard, by those professionals whose competency is certified or by licensed energy auditors, or licensed energy contractors, or licensed consultants, the Authority shall issue a written notice to those concerned, and give adequate time for corrective action.

3/if customers and community suffer due to failure to rectify or improve the service up to the level required within the rectification time limit provided under sub-article (1) of this Article,the Authority shall, in accordance with Article 4 (2) and Article 8 (2) of the Proclamation;

  1. a) impose administrative penalty on the service provider based on the gravity of the fault up to Birr 10,000,000 (Ten Million);

b)provided, however, the total amount of the penalty to be imposed in one year on a licensee according to sub-article (3)(a) of this Article shall not exceed Birr 20,000,000 (Twenty Million);

4/In accordance with sub-Article (2) of this

Article, if no corrective action is taken following the notification and the services fall short of the standard issued or Code to be issued by the Authority in accordance with Article 4(6) of the Proclamation, by the holder of certificate of competence or by licensed energy auditors, or licensed energy contractors, or licensed consultants, the Authority shall impose administrative penalty on the service provider, in accordance with Article 4(2) of the Proclamation, up to Birr 200,000 (Two Hundred Thousand).

5/The Authority when imposes penalty pursuant to this Article, it shall take in to account the damage materialized.

6/The Authority shall, before deciding on the fine to be imposed, give an opportunity to the person subject to the fine with adequate time either to defend the proposed penalty or otherwise suggest reasons to mitigate the proposed penalty.

7/The detail level of penalty and minimum service levels to be guaranteed for the implementation of this Article shall be determined by a directive to be issued to implement this Regulation.

77.Procedure for Bulk Electric Power Procurement

1/The procedure for bulk electric power procurement shall, as far as practicable, be in accordance with the relevant law of the country, equitable, transparent, and competitive.

2/The Authority may issue directive on the procedure of bulk power procurement process pursuant to sub-article (1) of this Article.

3/The Authority shall examine and approve draft power purchase agreement and draft network use agreement when presented to it pursuant to Article 4(7) of the Proclamation.

78.Standards of Safety, Technical and Quality of Service

The Authority shall issue a directive on standards of safety, technical and quality of service.

79.Accident Reporting

1/If any accident occurs in connection generation, transmission, distribution or use of electrical energy resulting in serious injury to or loss of life of a human being or serious physical damage to a property, the licensee shall send to the appropriate government organ and the Authority, a report of the accident within 24 hours when he has knowledge of its occurrence.

2/Pursuant to sub-article (1) of this Article, serious injury means injury that requires the victim to become an in-patient at a hospital, and serious physical damage to a property means that a significant part of the property has been damaged or destroyed.

  1. Inspections by the Authority

1/Any duly authorized officer by the Authority shall have the right of access to the premises and operational areas of the licensee and be entitled at all times to inspect and to make examinations and tests of a licensee’s works.

2/In the course of such inspection the licensee shall cooperate with and render assistance to such duly authorized officer by the Authority.

3/The duly authorized officer shall show his identity card or appropriate license issued by the Authority for such purpose before commencing inspection activities.

  1. Protection of Off-Grid Distribution Sale, and Generation Licensee

1/ In the event that the national grid reaches to the off-grid exclusive generation, transmission or distribution and sale licensee’s network, the national grid licensee, operating under exclusive license may, by agreement, integrate such distribution and sale network and related generation facilities upon payment of reasonable compensation to the respective licensee and integrate it to the national grid.

2/ The supply facility to be integrate to the national grid pursuant to sub-article (1) of this article shall technically be qualified to integrate it to the national grid.

3/ In the event of disagreement over the amount of compensation to be paid for integration pursuant to sub-article (1) of this Article, the Authority shall settle the issue through arbitration.

4/ The Authority may give a decision that the national grid to connect the off-grid generation and transmission facility from the transmission or distribution and sale licensee to supply electricity to those customers who are without a regular supply of electricity because of the liquidation or bankruptcy of the existing off-grid distribution and sale licensee.

  1. Power to Issue Directive

The Authority may issue directives for the proper implementation of this Regulation.

  1. Transitional Provisions

1/Any person engaged in the operations of generation, transmission or distribution and sale, import or export of electricity for commercial purpose prior to the coming into force of this Regulation shall, within the period to be specified by the notice of the Authority, replace his license with new license to be issued in accordance with this Regulation.

2/Any certificate of competency of electrical contractors issued by the Authority prior to the coming into force of this Regulation shall remain valid until replaced by a new certificate of competency issued pursuant to this Regulation within the period to be specified by the notice of the Authority.

  1. Repealed and Inapplicable Laws

1/ The Electricity Operations Council of

Ministers Regulation No. 49/1999 is hereby repealed.

2/ No Regulation, directive or practice which is inconsistent with this Regulation shall have effect with respect to matters covered in this Regulation.

  1. Effective Date

This Regulation shall enter into force on the date of their publication in the Federal Negarit Gazette.

Done at Addis Ababa this 28th Day of January,2019

ABIY AHMED (DR.)

PRIME MINISTER OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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