Ethiopian Legal Brief

Council of Ministers Energy Regulation No. 447-2019

Council of Ministers Regulation No. 447-2019 COUNCIL OF MINISTERS ENERGY REGULATION

 

This Regulation is issued by the Council of Ministers pursuant to Article 5 of the Definition of Power and Duty of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 1097/2018 and Article 40 (1) of the Energy Proclamation No. 810/2013 (as Amended).

PART ONE GENERAL

1.Short title

This Regulation may be cited as the “Council of Ministers Energy Regulation No. 447/2019.”

2.Definitions

In this Regulation:

1/“Proclamation” means the Energy Proclamation No. 810/2013 (Proclamation No.1085/2018 as Amended);

2/ the definitions provided under the

Proclamation is applicable to this Regulation. 3/ “energy efficiency measure” means an

organizational, structural, technical, performance, technological, institutional or regulatory change made for improving energy efficiency;

4/ “energy efficiency service” means activities of investigation, consulting, studying, designing, constructing, installation, rehabilitation, maintenance, management and monitoring of machinery, facilities and buildings resulting in reduction of energy consumption while retaining or increasing the energy service;

5/ “short-term program” means a program covering a period from one to three years;

6/ “medium-term program” means a program covering a period from four to six years;

7/ “long-term program” means a program covering a period from seven to ten years;

8/ “facility” includes industry, building, premises and associated installation and instruments that consume energy for its operations;

9/ “industry” means a factory engaged in the manufacturing of goods for commercial purpose and consume electricity for this purpose;

10/ “designated facility” means an industry or building designated by the Authority through directive to be issued hereunder based on energy consumption;

11/ “generation facility” means a set of technology used to produce electricity;

12/ “grid code” means a code issued by the

Authority containing technical performance standards in relation to the power generation, transmission and distribution systems;

13/ “premise” means as appropriate a use or possession right related to any land, building or structure;

14/ “network services” means electrical energy transmission or distribution services, including such ancillary services necessary to maintain voltage and frequency within the agreed limits;

15/ “meter” means a device, including any associated equipment, used for measuring electricity consumption;

16/ “ancillary service” means services such as frequency regulation, spinning reserves, voltage and reactive power support, black start and load shedding facilities, other than generation and supply of electricity;

17/ “certified person” means a person issued with a certificate of competency for electrical work pursuant to this Regulation;

18/ “exclusive license” means a type of license granted by the Authority and no other license may be granted for the same activity on the same geographical basis;

19/ “non-exclusive license” means a type of license granted by the Authority and additional licenses may be granted for the same kind of activities on the same geographical basis;

20/ “relevant licensing authority” means the

Authority or Ministry of Trade or any of States Bureau of Trade, Industry or Construction as appropriate;

21/ “spot market” means a system of electricity market that match the electricity at a price buyers are prepared to pay and sellers are prepared to deliver;

22/ “independent power producer” means any person that own generation plant and sell bulk electricity to the national grid through power purchase agreement;

23/ “renewable energy” means energy resources to be used for energy generation which are naturally replenished, such as sunlight, wind, water, and geothermal heat;

24/“regulated basic asset ” means an asset that is allowed by the Authority for the purpose of calculating the revenue requirement of the licensee based on the rate of return on assets and depreciation allowances of the authority.

PART TWO

LICENSE AND CERTIFICATE OF COMPETENCY

3.General Requirements for Application and Issuance of License

1/Any application for a license shall be lodged to the Authority by filling the form prepared by the Authority for this purpose and accompanied with the following information of the applicant:

  1. a) identity and address of the applicant;
  2. b) documents showing the applicant’s financial capacity and situation;
  3. c) technical competency and experience of the applicant;
  4. d) application examination fee receipt. 2/The Authority shall issue the license to the

applicant if verifies that the applicant is capable to construct and operate the electric supply system that he applied to obtain license.

3/The Authority may take into account the following conditions to verify the applicant’s competence and to issue license:

  1. a) compliance or any failure by the applicant to perform previous and current commercial or statutory obligations and the reasons in case of failure;
  2. b) that he is not prosecuted and sentenced in relation to license issued as per the Proclamation for fraud or similar offence.

4/If the applicant is a legal person, the provision of sub-article (3) of this Article shall also apply to the Directors of the body that have the legal personality.

5/The applicant issued license pursuant to this Regulation shall also comply with the relevant laws as may be applied to the development, construction, operation or maintenance of such plant.

6/If the Authority refuses to issue the license sought by the applicant, it shall promptly give the applicant a written notice informing the reasons for the refusal and the applicant’s right to lodge complaint against the refusal.

7/An applicant received refusal notice in accordance with sub-article (6) of this Article may file his complaints to the complaint handling body of the Authority within one month.

8/ The Authority shall issue a directive regarding the issuance of off grid small scale generation distribution and sale license.

9/Without prejudice to Article 6(2) of the Proclamation, any person who has interest in the operations of generation, transmission or distribution of electricity for non-commercial purpose shall submit documents to the Authority in accordance with the Directive to be issued hereunder.

  1. Registration of Application for License

/ The Authority shall, upon verifying that the application for license is complete in accordance with article 3 of this Regulation, shall register the application in the registration book maintained for such purpose in the order of its submission and given a receipt to the applicant indicating the date and the number of the registration.

2/The Authority shall maintain a register for licenses and certificates of competency issued and shall make open such register to the public.

  1. Publication of License Application

1/ The Authority shall, before issuing a license, publicise the following information in a newspaper having wider circulation or other mass media by the expense of the applicant:

a)the application submitted for license and the name of the applicant;

b)possibility of inspection of the application in the office of the Authority by the public, except the confidential commercial information;

c)any person alleging that he may sustain damage due to the issuance of the requested license may lodge his objection in writing to the Authority within news paper or other mass midea 30 days from the date of issuance of the notice.

2/If objection is lodged against issuance of the license in according to sub-article (1) of this Article, the Authority shall cause the concerned parties to settle the matter through negotiated agreement.

3/ If parties fail to reach agreement within 30 days after commencing negotiation, the Authority, after hearing the two parties, shall give a decision within 30 days either by accepting or rejecting the objection.

  1. Amendment of Application

1/If an applicant desires to make any amendment to his application, he shall submit a written application to the Authority.

2/The provisions of this Part shall be applicable on the application amended.

  1. Application for Generation License

Any application for a generation license shall, in addition to the general requirements stated under Article 3 of this Regulation, contain the following:

1/Initially when submitting application for license:

  1. a) source of electricity;
  2. b) map of the project site;
  3. c) total generation capacity of the project in measured units;

d)the transmission grid or supply network details to which it shall be connected or whether it operates on an off-grid basis;

e)at least prefeasibility study of the project;

f)planned source of finance, and proposed debt to equity ratio;

  1. g) proposed term of the license; and
  2. h) other documents the licensing authority believes to be necessary and relevant.

2/ When a License is given after the application for license submitted in accordance with sub-article (1) of this article, the following shall be fulfilled before commencement of the licensed commercial activities:

  1. a) approved power purchase agreement, where appropriate;
  2. b) where applicable, project finance agreement
  3. c) environmental impact assessment clearance certificate from the concerned authority;
  4. d) trade registration certificate; tax payers identification number, land use permit, water use permit, geothermal resource development license, other primary energy resource development license, and construction permit as may be appropriate.
  5. Application for Transmission License

Without prejudice to the sole right of the governmental organ to transmit power in the national grid, the application for transmission shall, in addition to the general requirements stated under Article 3 of this Regulation, contain the following in:

1/route map and operation area of the transmission grid;

2/ project feasibility study;

3/ if the transmission line is to be connected to another transmission grid, the other transmission grid to which it may be connected;

4/ exact limit of the transmission grid;

5/ the supply network to which it may be connected;

6/ environmental impact assessment clearance certificate from the concerned authority; and

7/ proposed term of the license.

  1. Application for Distribution and Sale License

The application for a distribution and sale license to be lodged by a public operator that has sole right to distribute and sale electricity in the national grid shall, in addition to the general requirements stated under Article 3 of this Regulation, shall contain the following:

1/ route map and operation area of the distribution network;

2/ project feasibility study;

3/ if the distribution network is to be connected to another distribution network the basic informations of other distribution network to which it may be connected;

4/ exact limit of the distribution network; 5/ the transmission network to which it may

be connected or the source of electricity;

6/ power purchase agreement as appropriate;

7/ environmental impact assessment clearance certificate from the concerned authority and;

8/ proposed term of the license.

  1. Application for Importation and Exportation of Electricity

Application for importation and exportation of electricity, in addition to the appropriate requirements stated under Article 3 of this regulation, shall fulfill the following:

1/ technical standard compatible with that of the national Grid Code;

2/ power purchase agreement or transmission service agreement as may be applicable;

3/ as may be applicable acceptable license or document issued by the appropriate Authority where by the applicant may participate in a spot market;

4/ source and amount of desired import or export of power and energy;

5/ possible impact of the desired import or export on existing customers and the economy; and

6/ as may be applicable agreements with entities in the country where the electricity is to be imported or exported.

  1. Issuance of Certificate of Competency

1/No person shall undertake electrical work activities without obtaining certificate of competency from the Authority.

2/Any application submitted for a certificate of competence by a professional, in addition to the detailed technical criteria and document, shall contain the following:

  1. a) identity and address of the applicant;
  2. b) level of education; and
  3. c) work experience, as appropriate. 3/Any application submitted for a certificate

of competence by a business organization, in addition to the detailed technical criteria and documents, shall contain the following:

  1. a) address of the applicant;
    b) qualified staffs employed in a

permanent basis;

  1. c) Memorandum of association and article of association, as appropriate.

4/ The applicant’s Application shall be accompanied by application examination and registration fee prescribed under Table 1 of this Regulation.

5/ The Authority may, following verification of informations submitted in connection with the application, give a written and practical examination, as may be appropriate, to evaluate the competency of the applicant and to determine whether the applicant qualify to the grade of the certificate applied.

6/ Where the Authority prove that the applicant has fulfilled the requirements of certificate of competency; it shall issue a certificate of competency to the applicant upon the payment of the fees prescribed under Table 1 of this Regulation.

7/ Detailed technical criteria and documents required to issue certificate of competency

shall be determined by a directive to be

issued to implement this Regulation.

f the Authority decides that the information submitted by the applicant certificate of

competency is inadequate it shall notify its

decision to the applicant in writing.

  1. Validity Period and Renewal of License

1/The validity period of license issued pursuant to the provisions of the Proclamation and this Regulation shall be as follows:

  1. a) hydro and geothermal power generation license up to 25 years;
  2. b) wind, solar, bio-mass, urban waste, thermal and bio-gas power generation license up to 20 years;

c)transmission license up to 30 years; and

  1. d) distribution and sale license up to 20 years.

2/ unless stated otherwise in other laws a license, may be renewed only when the licensee:

  1. a) has made an application one year prior to the expiry of the term of license and the Authority proves that the facilities are in good working condition;
  2. b) was not in breach of any provisions of the Proclamation, this Regulation and directive issued hereunder which constitutes as grounds for revocation of license; and
  3. c) has agreed to upgrade operations in accordance with latest technology generally accepted in the power industry.

3/ After the validity period of the license each renewal period of license shall be as follows:

  1. a) hydro power generation license, up to 12 years and 6 months;
  2. b) wind, solar, bio-mass, urban waste, thermal and bio-gas power generation license, up to 10 years;
  3. c) transmission license, up to 15 years; and
  4. d) distribution and sale license, up to 10 years.

4/The validity and renewal period of import or export license of electricity power shall be similar to that of the transmission and as may be appropriate, that of the distribution and sales license.

  1. Amendment of License

1/ Any licensee who desires amendment of his license shall submit a written application to the Authority.

2/ The provisions of this Part shall be applicable on the application made for amendment pursuant to sub-article (1) of this Article.

3/ The application submitted for amendment pursuant to sub-article (1) of this Article shall be made by filling a form designed for such purpose and submitted to the Authority together with the following documents:

  1. a) copy of the previous license;
  2. b) when the application is submitted by an agent, copy of the power of attorney;
  3. c) where the investment is made by business organization, copy of its commercial registration certificate; and
  4. d) such other documents determined in the directive of the Authority.

4/A new license shall be required if a person decides to engage in a similar operation at a different location or to extend its operation beyond the boundary of its nonexclusive licensed area of operation.

  1. Transfer of License

Any licensee may transfer his license, when the Authority confirms that the one to whom the license to be transferred, has the required competency to fulfill the obligations of the license.

  1. Suspension or Revocation of License or Certificate of Competency

1/ A license may be suspended on one of the following grounds:

  1. a) failure to maintain the basic service supply quality standard or safety standard issued by the Authority and inability to rectify the situation with in the time limit given by the Authority;
  2. b) fails to submit a complete report in accordance with the provisions of this Regulation or submits false report or fails to maintain proper documentations;
  3. c) intentionally obstructs or creates obstacle in the regulatory activities of the Authority;
  4. d) transfers his license to a third party without the consent of the Authority; or
  5. e) a generation licensee, if fails to submit a renewed power purchase agreement in accordance with the terms of the license.

2/ A certificate of competence may be suspended on one of the following grounds:

  1. a) engaging in activities beyond authorized in the certificate of competence issued by the Authority or perform below the standard;

b)cause damage on life or property of the service user as a result of basic safety and quality problem of the work performed;

c)submit incomplete or false report or failure to maintain appropriate documentations in accordance with this Regulation;

d)intentionally obstruct or creates obstacle in the regulatory activities of the Authority; and

e)transfer his certificate of competence to a third party.

3/ The Authority shall, at least 45 (forty five)

days ahead, issue a written notice to the

holder of the license or certificate by

stating the grounds on which suspension

or revocation measure is to be taken.

4/ A license or certificate of competence of any person may be revoked accordance with sub-article(3) of this article, 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.

5/The notice served by the authority in accordance with sub-article (3) of this Article, shall notify the holder of a license or certificate to submit in writing the measure that he is going to take or express his opinion in writing to the Authority.

6/ The Authority, after the laps of period stated under sub-article (8) of this Article, where it;

a)suspends or revokes any license either in whole or in part, it shall publish such suspension or revocation on a mass media having wider circulation

b)suspends or revokes any competency certificate either in whole or in part, it may publish such suspension or revocation on a mass media having wider circulation.

7/The Authority shall take into consideration in its decision to suspend or revoke a license or competency certificate, the extent to which any person is likely to suffer damage as a result of suspension or revocation of a license.

8/Any person whose license or certificate of competency suspended or revoked by the Authority may apply to the Authority within one month for review of the decision by the Authority.

  1. Validity Period and Renewal of Certificate of Competency

1/A certificate of competency shall be valid for two years starting from the date of its issuance.

2/A certificate of competency shall be renewed at least 15 (fifteen) days before its expiry date by submitting application for its renewal.

3/Any person whose certificate of competency has not been renewed within the period specified under sub-article (2) of this Article, may apply for renewal within subsequent 90(ninety) days of its expiry and the Authority may renew the certificate upon payment of penalty fee to be prescribed in a directive.

4/Any professional who wants to renew his certificate of competency shall produce evidence showing that, within the validity period of the certificate, that he has at least gained three months work experience or has participate at least for 16 hours training which has relevance to the certificate issued.

5/Any certified business organization requests to renew its certificate of

competency shall present its professional staff and their respective certificate of competence together with other relevant documents to the authority.

17.Replacement of License or Certificate of Competency

1/Any licensee or holder of certificate of competence may, upon the payment of the application and registration fee prescribed on the table 1 of this Regulation, may apply to the Authority for the replacement of the license or certificate of competency, which has been lost or destroyed.

2/The Authority after receiving the application in accordance with sub-Article

(1) of this Article shall issue a replaced license or certificate of competency, after conducting appropriate verification.

18.Inspection

1/The Authority shall assign inspection officer to supervise the activities of a certificate of competency holder whether he conducts its work in accordance with the terms of certificate of competence.

2/The inspection officer assigned by the Authority shall show his identification card issued by the Authority while conducting inspection, and may require the certified person to submit documents, records, machineries, tools, any other informations at its disposal, as appropriate.

3/Any certified person shall submit a completion report to the Authority on tasks performed with the certificate of competence issued, by filling form prepared by the Authority in accordance with directive to be issued to implement this regulation.

  1. revocation of License and Certificate of Competency

A license or certificate of competency shall revoked if:

1/ it expires without being renewed pursuant to Article 12 and Article 16 of this Regulation;

2/ it is revoked by the Authority pursuant to

Article 15 of this Regulation; or 3/ without prejudice to the rights of heirs, a

license or certificate of competency shall be terminated when an individual dies or when a business o

20.Fee for License and Certificate of Competency

The service fees to be paid for the Authority with regards to the issuance and administering of the license and certificate of competency shall be as per the provisions of Table 1 of this regulation.

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.

PART FOUR ELECTRICITY TARIFF AND GRID ACCESS

SUB-SECTION ONE ELECTRICITY TARIFF

29.General Principles

In reviewing and recommending grid related tariff or approving off-grid tariff the Authority shall be guided by the following principles:

1/ the generation, transmission, distribution and sale of electricity are conducted on the basis of commercial principles and best practice of the sector;

2/ the factors which would encourage competition, efficiency, economical use of the resource, efficiency in performance, transparency, accommodating the needs of system integrity and attract investment to the electricity sector, as appropriate;

3/ safeguarding customers interest and at the same time recover cost of electricity as per the relevant Regulation;

4/ application of tariff principles for more than a year;

5/ the promotion of co-generation and generation of electricity from renewable energy sources;

6/ costs covered by subsidy, cross-subsidy or grant shall not be reflected in the costs of business operations; and

7/ tariff adjustments shall, to the extent possible, ensure price stability and simplicity of administration.

30.Tariff Review, Recommendation and Approval

1/ In reviewing and recommending grid related tariff or approving off-grid tariff in relation to generation, transmission, distribution and sale of electricity, the following and other appropriate factors may be considered:

  1. a) cost of fuel;
  2. b) cost of power purchase;
  3. c) the rate of inflation or deflation; and
  4. d) foreign currency fluctuation.

2/In reviewing and recommending grid related tariff or approving off-grid tariff the Authority may require a licensee to furnish separate details, as may be specified, in the tariff directive.

3/The Authority shall not, while reviewing and recommending grid related tariff or approving off-grid tariff, show undue preference to any customer of electricity; except on the bases of the following:

  1. a) customers load factor, power factor, voltage;

b)total consumption of electricity during any specified period; or

c)the geographical location, the nature of supply and the purpose for which the supply is required.

  1. Procedure for Tariff Review, Recommendation and Approval

1/ The licensee shall submit application to the

Authority for reviewing and recommending grid related tariff or approval of off-grid tariff under Article 29 of this Regulation.

2/ The Authority shall, within 120 (one hundred twenty) days from receipt of an application as provided under sub-Article

(1) of this Article and after considering all suggestions and objections received from the public, approve off-grid tariff with such modifications or reject the application for reasons to be recorded; provided, however, that an applicant shall be given an opportunity to be heard before rejecting his application.

3/ The Authority shall submit the recommended grid related tariff for approval to the relevant Government Organ.

4/ The Authority shall send copy of grid related tariff and off-grid tariff to the concerned licensee within seven (7) days of such approval.

5/ The licensee shall, in order to create public awareness, publicize to the public the approved tariff using mass media outlets having wide coverage and other communication media.

6/ The Authority may issue directive containing the following components about income capacity conditions to be followed by all licensees:

  1. a) regulatory asset base;
  2. b) depreciation;
  3. c) working capital;
  4. d) cost of capital;
  5. e) return on investment;
  6. f) operation and maintenance expenses, including customer connection costs; and
  7. g) other related costs.

/ The licensee shall conduct tariff review study every four years of interval in accordance with tariff procedure to be issued by the Authority and shall submit the study report to the Authority.

8/ The Authority shall determine by Directive for submission of tariff application by licensee other than the tariff application procedure provided under sub-article (7) of this Article.

32.Uniform System of Accounts and Audit Report

1/The Authority shall issue directive on uniform system of accounting based on generally accepted accounting principles to support the tariff regulation efforts and be applied by all licensees.

2/Any licensee shall submit audited reports of its accounts to the Authority within 6 (six) months from the end of the government’s fiscal year.

SUB-SECTION TWO GRID ACCESS

33.Principles

1/ Based on the conditions specified in the license, access to and use of the national transmission grid shall be open for international power trade; and its use shall be, transparent and cost-reflective, and based on transmission service agreement to be approved.

2/ Access to the national transmission grid as provided under sub-article (1) of this Article, shall not adversely affect services of the existing customers.

34.Refusal of Access

1/The licensee may refuse or prevent connection or access, until the condition are improved, when the national grid connection or access contradict with grid access principle provided under Article 33 of this Regulation.

2/The Authority shall examine and pass decision on the reliability of the measure taken by the licensee pursuant to sub-article

(1) of this Article.

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.

PART SIX SETTLEMENT OF DISPUTE

CHAPTER ONE GENERAL

64.General Principles

1/ Any disputes and complaints may be settled by the parties themselves at first amicably.

2/When parties fail to settle their dispute amicably, they may resort either to submit a complaint to the Authority or to a mediator.

3/ When the dispute cannot be resolved through mediation as per sub-article (2) of this

Article it may be settled by arbitration.

4/If the arbitral award under sub-article (3) of this Article is given by the Authority, it shall be final and binding on all parties involved in the arbitration proceeding.

65.Handling Complaint of Customers hearing of customers complaint

1/The customer may submit his complaint to the Authority, where he has exhausted all complaint hearing procedures arranged by the licensee and is not satisfied by the decision of the licensee or the licensee failed to render decision within one month of receiving of such compliant.

2/The customer shall submit his complaint to the Authority in written form within 15(fifteen) days from the date of final decision of the licensee and the Authority shall render the decision within 15

(fifteen) days of receiving such a complaint.

3/the decision given by the Authority on complaint submitted to it pursuant to sub-article (2) of this Article shall be binding and final.

CHAPTER TWO DISPUTE RESOULTION THROUGH

MEDIATION

  1. Appointment of Mediator

1/ When parties to a dispute fail to resolve their dispute amicably by themselves in accordance with Article 64(1), one or both parties to the dispute may submit a request to the Authority for Appointment of Mediator.

2/A request for Appointment of Mediator submitted as per sub article (1) of this article shall contain:

  1. a) the name, addresse of the parties to the dispute;
  2. b) a brief explanation of the nature of the dispute and any specific relief sought; and

c)the name and address of the proposed mediator.

3/The Authority shall appoint a mediator within 10 (ten) days after receipt of a request Appointment of Mediator.

  1. Objection on the appointment of Mediator

1/Any party to the dispute may who for good cause object the appointment of a mediator conducted pursuant to Article 66(3) this Regulation may submit is objection in written with its reason within 5 (five) days to the Authority.

2/The Authority shall give instruction to the disputing parties to bring another proposed mediator when it finds the reason for objecting the appointment is reliable.

3/If the parties fail to agree while conducting selection of mediator pursuant to sub article (2) of this Article and request the Authority to act on their behalf, the Authority shall replace a mediator and notify the parties in writing the replaced mediator within 5(five) days.

  1. Commencing of Mediation

1/The mediator shall commence mediation within 10(ten) days of appointment.

2/The parties of such dispute shall be duty bound to cooperate with the mediator to commence the mediation before the lapse of time specified under sub-article (1) of this Article.

  1. Resignation or Withdrawal of a Mediator

1/The mediator shall replace by other if , after his appointment becomes aware of any circumstances that may create a bias, partiality or lack of neutrality he shall immediately resign and inform the parties to the dispute and the Authority.

2/The Authority shall withdraw a mediator and replace by another mediator after being notified by one or both parties to the dispute, that the mediator shall be disqualified and when it is proved that he has any conflict of interest likely to affect or which might reasonably be perceived to affect the mediator’s independence or ability to act impartially at all times.

  1. Termination of Mediation

1/The mediation shall terminate due to one of the following conditions:

a)when parties settle or fail to settle their disputes by agreement;

  1. b) when the mediator, after consultation with the parties to the dispute, informs the authority

and parties in writing that further attempts to secure outcome of agreement through mediation is no longer appropriate; or

  1. c) if one or all parties to the dispute without a need to present reason, submit to the mediator and the Authority a written notice of their decision to the termination of the Mediation process .

2/ The mediator shall report the final result of the mediation in writing to the Authority.

CHAPTER THREE DISPUTE RESOULTION THROUGH

RBITRATION

71.Arbitration

When the dispute is not settled through mediation pursuant to this Regulation the parties to the dispute may agree to submit their issue to the Authority for arbitration.

72.Establishment of Arbitration Panel

1/The Authority shall establish an arbitration panel to resolve disputes submitted pursuant to Article 71 of this Regulation.

2/The number of arbitrators of arbitration panel established pursuant to sub-article

(1) of this Article, including the chairperson shall not exceed three.

3/Notwithstanding the provision of sub-article (2) of this Article the Authority may, on the basis of the complexity of the issue, determine the issue to be arbitrated by one arbitrator.

4/The Authority may issue a Directive to determine the qualification, appointment, cancellation and replacement of the members of the arbitration panel.

  1. Jurisdiction of Arbitration Panel

The arbitration panel shall have the jurisdiction on the matters covered by the Proclamation, this Regulation and directive to be issued .

  1. The Power Procedure of Arbitration Panel

he Civil Procedure Code shall be applicable for the proceedings of the arbitration panel established in accordance of Article 72 of this Regulation.

  1. Arbitration Service Fee

The Authority shall determine arbitration fee to be paid to arbitrators based on negotiation and consents of the parties directly involved in the case and who are paying for the service.

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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