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South Africa Act or statute

Parliament of the Republic of South Africa

Electricity Regulation Amendment Act

This section amends section 1 of the Electricity Regulation Act, 2006 by adding several definitions. Section 4 is amended by replacing item (aa) so it refers to the operation of generation, transmission, and distribution…

administrative procedureelectricity distributionelectricity generationelectricity networkselectricity regulationelectricity transmissionenergyfeesfinancial managementlegislative amendmentlicence applicationslicence validityBusiness registrationmunicipal administrationmunicipal electricity reticulationmunicipal reticulation servicespricing regulationprovider appointmentregistrationregulatory complianceregulatory frameworkreportingreticulationservice deliveryservice procurementstatutory definitionsstatutory structure
Jurisdiction
South Africa
Structure
22 provisions
Citation
Act 28 of 2007
Dates
Record updated 21 Jan 2008
More statute details
Dates
Record updated 21 Jan 2008

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01

Purpose and legislative effect

“This section amends section 1 of the Electricity Regulation Act, 2006 by adding several definitions.”

This section amends section 1 of the Electricity Regulation Act, 2006 by adding several definitions. Section 4 is amended by replacing item (aa) so it refers to the operation of generation, transmission, and distribution facilities. This section says section 9 of Act 4 of 2006 is being substituted. The Minister may, after consulting the Regulator and advisory forum stakeholders, decide by Gazette notice that an activity is no longer licensed. The Minister may require certain electricity-related persons to register with the Regulator, and those who must register must follow the prescribed form and procedure and pay the prescribed registration fee.

02

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Source record from www.parliament.gov.za · Record updated 21 Jan 2008

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Showing 22 of 22 provisions

Substitution 12Provision 4Amendment 3Commencement 2
§ 1Section 1 of the Electricity Regulation Act, 2006 (hereinafter referred to as theAmendment

This section amends section 1 of the Electricity Regulation Act, 2006 by adding several definitions.

1. Section 1 of the Electricity Regulation Act, 2006 (hereinafter referred to as the principal Act), is hereby amended by- 5 ( a ) the insertion after the definition of "Minister" of the following definitions: 10 " 'Municipal Finance Management Act' means the Local Govern- ment: Municipal Finance Management Act, 2003 (Act No. 56 of 2003); 'Municipal Structures Act' means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998); 'Municipal Systems Act' means the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000); 'municipality' means a category of municipality that has executive authority over and the right to reticulate electricity within its area of jurisdiction in terms of the Municipal Structures Act;"; and - ( b ) the insertion after the definition of "Regulator" of the following definitions: 'reticulation' means trading or distribution of electricity and includes services associated therewith: 'service delivery agreement' means an agreement between a munici- pality and an institution or person providing electricity reticulation, 20 either for its own account or on behalf of the municipality; 'service provider' means a person or institution or any combination of persons and institutions which provide a municipal service in terms of a service delivery agreement;". 15 u Amendment of section 4 of Act 4 of 2006 25
Section 1Verify source
§ 2Section 4 of the principal Act is hereby amended by the substitution inSubstitution

Section 4 is amended by replacing item (aa) so it refers to the operation of generation, transmission, and distribution facilities.

2. Section 4 of the principal Act is hereby amended by the substitution in subparagraph (a)(i) for item ( a a ) of the following item: "(aa) the operation of generation, transmission [and] distribution facilities;". 4 No. 30676 GOVERNMENT GAZETTE, 21 JANUARY 2008 Act No. 28,2007 ELECTRICITY REGULATION AMENDMENT ACT. 2007
Section 2Verify source
§ 1Substitution of section 9 of Act 4 of 2006Substitution

This section says section 9 of Act 4 of 2006 is being substituted.

1 Substitution of section 9 of Act 4 of 2006
Section 1Verify source
§ 3The following section is hereby substituted for section 9 of the principal Act:Substitution

The Minister may, after consulting the Regulator and advisory forum stakeholders, decide by Gazette notice that an activity is no longer licensed.

3. The following section is hereby substituted for section 9 of the principal Act: "9. The Minister may, after consultation with the Regulator and stakehold- ers in the advisory forum, determine by notice in the Gazette that any activity contemplated in section [$I I ( ] ) need no longer be a licensed activity from the date set out in such notice.". 5 Amendment of section 10 of Act 4 of 2006
Section 3Verify source
§ 4Section 10 of the principal Act is hereby amended by the substitution forSubstitution

The Minister may require certain electricity-related persons to register with the Regulator, and those who must register must follow the prescribed form and procedure and pay the prescribed registration fee.

4. Section 10 of the principal Act is hereby amended by the substitution for subsections (I) and (2) of the following subsections: "(1) The Minister may, in consultation with the Regulator, determine by notice 10 in the Gazette that any person involved in an activity relating to trading or the generation, transmission or distribution of electricity that does not require licensing in terms of section [$I 2 read with section [9] 8 must register with the Regulator. "(2) Any person who has to register with the Regulator must do so in the form and in accordance with the prescribed procedure, and an application for registration 15 must be accompanied by the prescribed registration fee: Provided that any person holding a valid license at the date of a determination contemplated in section [9] 8 must be issued with a registration certificate without complying with the prescribed procedure.". Amendment of section 11 of Act 4 of 2006
Section 4Verify source
§ 5Section 11 of the principal Act is hereby amended by the substitution in subsectionSubstitution

People required to hold a licence under section 11 must apply to the Regulator for that licence using the prescribed form and procedure.

5. Section 11 of the principal Act is hereby amended by the substitution in subsection (1) for paragraph (a) of the following paragraph: "(a) A person who has to hold a licence in terms of section [$I 1 must apply to the Regulator for such licence in the form and in accordance with the prescribed procedure.". Amendment of section 14 of Act 4 of 2006
Section 5Verify source
§ 6Section 14 of the principal Act is hereby amended by the substitution in subsectionSubstitution

This section amends section 14 of the principal Act by replacing paragraphs (a) and (b) in subsection (1) with new timing rules.

6. Section 14 of the principal Act is hereby amended by the substitution in subsection (1) of paragraphs (a) and (b) for the following paragraphs: "(a) after the expiration of the period contemplated in section [12] U(2)(d), if no objections have been received; or (b) after receiving the information contemplated in section [13] 11 (b)." Amendment of section 15 of Act 4 of 2006
Section 6Verify source
§ 7Section 15 of the principal Act is hereby amended by the substitution in subsectionSubstitution

This section amends section 15 of the principal Act by replacing paragraph (c) in subsection (1) with wording that sets the licence’s period of validity in accordance with section 20.

7. Section 15 of the principal Act is hereby amended by the substitution in subsection (1) for paragraph (c) of the following paragraph: "(c) the period of validity of the licence in accordance with section [21] 20 ;". Amendment of section 16 of Act 4 of 2006 20 25 30 35
Section 7Verify source
§ 8Section 16 of the principal Act is hereby amended by the substitution in subsectionSubstitution

This section changes the wording of section 16 of the principal Act.

8. Section 16 of the principal Act is hereby amended by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: "(1) A licence condition determined under section [IS]& relating to the setting or approval of prices, charges and tariffs and the regulation of revenues-". 40 Amendment of section 19 of Act 4 of 2006
Section 8Verify source
§ 9Section 19 of Act 4 of the principal Act is hereby amended by the substitution forSubstitution

If the tribunal finds the allegation is correct, it may impose a daily penalty on the licensee.

9. Section 19 of Act 4 of the principal Act is hereby amended by the substitution for subsection (4) of the following subsection: "(4) If the tribunal finds that the allegation contemplated in subsection (3) is correct it may impose a penalty of 10 per cent of the annual turnover of the licensee 45 or R2000 000,OO (whichever is the higher amount) per day [conimencing] commencing on the day of receipt of the notice contemplated in subsection (2)." 6 No. 30676 GOVERNMENT GAZETTE, 21 JANUARY 2008 Act No. 28,2007 ELECTRICITY REGULATION AMENDMENT ACT, 2007 Insertion of Chapter IV in Act 4 of 2006
Section 9Verify source
§ 10The following Chapter is hereby inserted after section 27 and the expressionProvision

This provision inserts a new chapter after section 27 titled “RETICULATION Duties of municipalities.”

10. The following Chapter is hereby inserted after section 27 and the expression "CHAPTER IV": "RETICULATION Duties of municipalities 5
Section 10Verify source
§ 27Each municipality must exercise its executive authority and performAmendment

Each municipality must carry out a set of electricity reticulation duties, including compliance, planning, service delivery, reporting, policy alignment, and separate financial statements.

27. Each municipality must exercise its executive authority and perform its duty by- complying with all the technical and operational requirements for electricity networks determined by the Regulator; integrating its reticulation services with its integrated development plans; preparing, implementing and requiring relevant plans and budgets; progressively ensuring access to at least basic reticulation services through appropriate investments in its electricity infrastructure; providing basic reticulation services free of charge or at a minimum cost to certain classes of end users within its available resources; ensuring sustainable reticulation services through effective and efficient management and adherence to the national norms and standards contemplated in section 35: regularly reporting and providing information to the Department of Provincial and Local Government, the National Treasury, the Regulator and customers; executing its reticulation function in accordance with relevant national energy policies: and keeping separate financial statemcnts, including a halance sheet of the reticulation business. Selection and appointment of external service providers 28. ( 1 ) A municipality must comply with Chapter 8 of the Municipal Systems Act and this Act prior to entering into a service delivery agreement with a service provider. (2) A service delivery agreement entered into by a municipality with an external service provider must comply with the Municipal Systems Act, the Municipal Finance Management Act and this Act. (3) The Minister may make regulations relating t+ (a) the criteria, in addition to those provided for in the Municipal Systems Act, against which service delivery mechanisms must be assessed; ( 6 ) matters which must be provided for in service delivery agreements; and (c) compulsory or standard provisions that must be included in the service delivery agreements. 30 35 40 Key performance indicators 29. (1) The Regulator must, after consultation with the Minister prescribe general key performance indicators in respect of the technical I operational issues pertaining to reticulation systems for municipalities. (2) The key performance indicators prescribed under subsection (1) may differentiate between categories and types of municipalities. (3) Management key performance indicators set by a municipality in accordance with Chapter 6 of the Municipal Systems Act must include the 8 No. 30676 GOVERNMENT GAZETTE, 21 JANUARY 2008 Act No. 28,2007 ELECTRICITY REGULATION AMENDMENT ACT. 2007 Amendment of section 44 of Act 4 of 2006
Section 27Verify source
§ 11Section 44 of the principal Act is hereby amended by the substitution in subsectionSubstitution

This section amends section 44 by replacing a paragraph in subsection (5) with wording that, where a licensee is involved, the matter must be handled under section 18(2).

11. Section 44 of the principal Act is hereby amended by the substitution in subsection (5) for paragraph ( b ) of the following paragraph: "(h) if a licensee is involved, act on the matter in accordance with section [19] l8(2) [; or]. - Amendment of section 47 of Act 4 of 2006
Section 11Verify source
§ 12Section 47 of the principal Act is hereby amended by-Substitution

The Minister may publish Gazette notices to make electricity-related regulations.

12. Section 47 of the principal Act is hereby amended by- ( a ) the insertion in subsection (1) after paragraph ( a ) of the following paragraph: " ( b ) municipalities that reticulate clcctricity; and"; and the substitution for subsection (4) of the following subsection: (b) "(4) The Minister may, by notice in the Gazette, make regulations regarding- (a) activities that must be licensed or registered and the classification of licences into categories and sub-categories; (b) norms and standards relating to quality of supply; (c) ancillary or administrative matters that are necessary to prescribe for effective reticulation services: (d) compulsory national norms and standards for reticulation services: (e) general key performance indicators in respect of technical opera- tional issues pertaining to reticulation; (f) the criteria, in addition to those provided for in the Municipal Systems Act, against which service mechanisms must be assessed; (g) matters which may be provided for in the service delivery agreement; ( h ) the compulsory or standard provisions that must be included in the (i) service delivery agreement; the inspection of and enquiry into the control and operation of any licensed, registered or reliculation-related activity; ( j ) new generation capacity; ( k ) types of energy sources from which electricity must be generated; (1) the percentages of electricity that must be generated from different energy sources; (o) ) (m) the participation of the private sector in new generation activities; ( n ) the setting of standards relating to health. safety and the environ- ment and their incorporation into licences or national norms and standards; the prohibition of certain practices in the electricity supply industry; the criteria for or prohibition of cross-ownership or vertical and horizontal integration by licensees in generation, transmission and distribution assets; (q) the conditions subject to which the Regulator may issue a licence; (I;) norms and standards for the setting of reticulation tariffs, in consultation with the Minister of Finance; (s) any other matter that may or must be prescribed in terms of this Act; ( 5 ) and any other ancillary or administrative matter that it is necessary to prescribe for thc proper implementation or administration of this &". Amendment of long title of Act 4 of 2006
Section 12Verify source
§ 13The following long title is hereby substituted for the long title of the principal Act:Substitution

This section replaces the Act’s long title with a new title about regulating the electricity supply industry and related matters.

13. The following long title is hereby substituted for the long title of the principal Act: "To establish a national regulatory framework for the electricity supply industry; to make the National Energy Regulator of South Africa the custodian and enforcer of the national electricity regulatory framework; to provide for licences and registration as the manner in which generation, transmission, distribution, reticulation, trading and the import and export of electricity are regulated; to regulate the 10 No. 30676 GOVERNMENT GAZETTE, 21 JANUARY 2008 Act No. 28,2007 ELECTRICITY REGULATION AMENDMENT ACT. 2007 reticulation of electricity by municipalities; and to provide for matters connected therewith." Amendment of section 49 of Act 4 of 2006
Section 13Verify source
§ 14Section 49 of the principal Act is hereby amended by the substitution forCommencement

Section 49 is amended so that section 3 is treated as having come into operation on 1 December 2004.

14. Section 49 of the principal Act is hereby amended by the substitution for subsection (2) of the following subsection: "(2) Despite subsection (I), section [46] 3 must be regarded as having come into operation on 1 December 2004." "Amendment of Arrangement of Sections of Act 4 of 2006
Section 14Verify source
§ 15The Arrangement of Sections of the principal Act is hereby amended by-Amendment

This provision amends the Arrangement of Sections of the principal Act by deleting one section reference and inserting new text after Chapter IV.

15. The Arrangement of Sections of the principal Act is hereby amended by- ( a ) the deletion of the following: "7. Application of Chapter;"; ( b ) the insertion after the expression of "Chapter IV" of the following: "Reticulation
Section 15Verify source
§ 27Duties of municipalitiesProvision

This section concerns the duties of municipalities.

27. Duties of municipalities
Section 27Verify source
§ 28Selection and appointment of external service providersProvision

This section concerns the selection and appointment of external service providers.

28. Selection and appointment of external service providers
Section 28Verify source
§ 29Key performance indicators"; andProvision

This provision indicates a renumbering of certain sections and references “Key performance indicators.”

29. Key performance indicators"; and (c) by the renumbering of sections 42 to 49 to sections 30 to 37, respectively. 5 10 15 Renumbering of certain sections in Act 4 of 2006
Section 29Verify source
§ 16The principal Act is hereby amended by-Short title

This section amends the principal Act by replacing one subparagraph and renumbering several sections.

16. The principal Act is hereby amended by- ( a ) the substitution in paragraph (bJ of section 4 for subparagraph (iv) of 20 the following subparagraph: "[(iv)]@J perform any other act incidental to its functions."; ( b ) the renumbering from section 8 up to and including section 27 to (c) become section 7 up to and including section 26; and the renumbering from section 42 up to and including section 49 to 25 become section 30 up to and including section 17. Short title and commencement
Section 16Verify source
§ 17This Act is called the Electricity Regulation Amendment Act, 2007, and comesCommencement

This section gives the Act its name and says it starts on a date fixed by the President by proclamation in the Gazette.

17. This Act is called the Electricity Regulation Amendment Act, 2007, and comes into operation on a date fixed by the President by proclamation in the Gazette.
Section 17Verify source

Legislative relationships

5 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

2 instruments

  • Arrangement of Sections of Act

    Section 14

  • Electricity Regulation

    Section 1

G–M

1 instrument

  • Municipal Systems Act

    Section 27

N–S

2 instruments

  • principal Act

    Sections 6, 7, 16

  • Sections of the principal Act

    Section 15

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