Energy Regulation Act

This section says the Act may be cited as the Energy Regulation Act.

This section defines key terms used in the Act.

The Malawi Energy Regulatory Authority is established as a body corporate and may carry out powers given by the Act and the Energy Laws.

This section sets out how the Authority is made up, how members are chosen, and who cannot be appointed as a member.

The President appoints members of the Authority, but each appointment needs confirmation by the Public Appointments Committee.

The President must appoint one Authority member as Chairperson and another member as Vice-Chairperson.

Most Authority members serve for three years, may be reappointed, but cannot serve more than two consecutive terms.

A member of the Authority may be removed only for incompetence or misconduct, after due inquiry, and with approval from the Public Appointments Committee. Vacancies are filled by appointing a new member, but no one may be appointed if the remaining term is under six months.

The Authority has power to regulate the energy industry and carry out listed licensing, tariff, compliance, standards, fee, dispute, complaint, and reform functions.

Before issuing or revising an energy-sector policy, the Minister must consult licensees and other stakeholders.

Members of the Authority are to be paid remuneration or allowances approved by the Minister of Finance on the Authority’s recommendation.

Rules for Authority meetings: the Chairperson sets timing and manner, the Authority must meet at least quarterly, and certain meeting, voting, quorum, and record-keeping rules apply.

Members of the Authority must act transparently, independently, and in the Authority’s interests, disclose conflicts of interest quickly, and stay out of related decisions after disclosure.

The Authority must act within its powers, use a procedurally fair process, and be reasonable when its decisions affect another person’s rights. People adversely affected by such a decision must be given written reasons.

The Authority may create and manage committees, appoint each committee’s chairperson, and override committee decisions. Committees must follow the Authority’s written directions, and the chairperson may call meetings.

The Authority may appoint non-members to advise it and may establish customer-consumer fora.

The Authority may invite a knowledgeable person to attend and address its meetings or committee meetings, but that person may not vote on Authority decisions.

The Authority must appoint a Chief Executive.

The Authority must establish its own Secretariat and may appoint staff, delegate staff appointment to the Chief Executive, and set pay and benefits for staff.

The Chief Executive must disclose conflicts of interest to the Authority and must not attend meetings while the related matter is being discussed. Employees, consultants, advisers, and sub-contractors to the Authority must disclose their interests to the Chief Executive.

The Authority may delegate its powers or functions to the Chairperson, a member, or an employee of the Authority.

The Authority’s funds come from fees, levies, fines, government or other revenue, parliamentary appropriations, administrative penalties, and other authorized income.

The Authority may impose an energy regulation levy on energy sales, and licensees must pay it within 30 days of sale or billing, whichever comes first.

Licensees must pay a rural electrification levy to the Authority, and the Authority must pass it to the Rural Electrification Fund.

The Authority must keep proper accounting records, prepare annual financial statements after each financial year, and have its accounts audited and examined before presentation to Parliament.

The Authority must submit an annual report to Parliament through the Minister within six months after the financial year ends.

You cannot establish, operate, or take part in an energy undertaking in Malawi without a licence from the Authority.

A person who must hold a licence under this Act or the Energy Laws must apply to the Authority for the licence in the prescribed form and pay the fees set out in the Act or Energy Laws.

A licensee must not charge a customer more than the tariffs, prices, or charges allowed by the licence or its revision and approved by the Authority.

A licence, and related rights or interests in it, cannot be transferred without the Authority’s prior written consent.

If a party to a dispute asks, the Authority must arbitrate certain disputes involving licensees, customers, or consumers about energy supply and related charges or services.

The Authority may act as mediator if a licensee, customer, or consumer asks it to do so.

The Authority may appoint another arbitrator or mediator on behalf of the Authority if the parties approve.

The Authority must make procedure rules for arbitration and mediation disputes and publish fees in the Gazette.

The Authority’s dispute-arbitration decision, including costs, is final and binding on the disputing parties, subject to the Arbitration Act.

The Authority may investigate complaints or enquiries about energy supply, and must investigate complaints about unlawful conduct by a licensee.

A licensee must report serious or potentially serious accidents to the Authority within seven days, and the Authority must investigate within 21 days after receiving the report.

The Authority may enter and inspect a licensee’s premises, require returns, and ask for their accuracy to be verified on oath. A person authorized in writing must show that authorization on request by a licensee.

This section makes several energy-related acts offences, including breaching the Act or Authority orders, illegal energy abstraction, tampering with meters or equipment, blocking inspections, damaging installations, and a licensee wrongly refusing another licensee access to its system.

If a person commits an offence under the Act and no specific penalty is provided, conviction brings a K50,000,000 fine and 10 years’ imprisonment.

The Authority may impose monetary administrative penalties on a licensee or consumer who breaches licence conditions, and must prescribe a schedule of non-compliance and corresponding penalties.

Notices or other documents required or authorized under the Act may be served in several specified ways.

A person aggrieved by a decision or action of the Authority may seek judicial review in the High Court within 30 days.

Certain Authority members, staff, and meeting attendees must not disclose non-public information learned in their duties, unless one of the stated exceptions applies.

The Authority may make by-laws to give effect to the Act and to regulate energy supply, fuels, stockholdings, public safety, fees, prohibited goods, meter testing, and related matters.