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Electricity Act, No. 11 of 2019

Country/Territory
Zambia
Document type
Legislation
Date
2019
Source
FAO, FAOLEX
Long title
An Act to regulate the generation, transmission, distribution and supply of electricity so as to enhance the security and reliability of the supply of electricity; provide for the sale and purchase of electricity within and outside the Republic; facilitate the achievement of the efficient, effective, sustainable development and operation of electricity infrastructure; provide the roles and responsibilities of various participants in the electricity sector; facilitate adequate levels of investment in the electricity sector; provide for a multi-year tariff framework; promote transparency in the identification and allocation of risks, costs and revenues within and between participants in the electricity sector; ensure the protection and safety of consumers of electricity and the public; repeal and replace the Electricity Act, 1995; and provide for matters connected with, or incidental to, the foregoing.
Subject
Energy
Keyword
Business/industry/corporations Environmental standards Hydropower generation Inspection Authorization/permit Certification Consumer protection Enforcement/compliance Energy conservation/energy production Public participation Royalties/fees Standards Protection of environment
Geographical area
Africa, Eastern Africa, Landlocked Developing Nations, Least Developed Countries
Abstract

This Act repeals and replaces the Electricity Act of 1995. It is closely related to the Energy Regulation Act, 2019 and some of the functions of the latter's agencies overlap in the objectives of this Act. For instance, it is provided that in addition to the functions of the Energy Regulation Board under the Energy Regulation Act, the Board is to; (a) secure a regular, efficient, coordinated and economical supply of electricity and facilitate universal access to electricity supply; (b) provide for diversity in the generation of electricity in order to accelerate energy independence, affordability of electricity and universal supply of electricity;(c) facilitate the efficient, effective, sustainable development and operation of electricity supply infrastructure, installations and facilities;(d) facilitate investment in the development, construction and operation of electric plants using renewable energy resources; (e) facilitate energy conservation in the production and end use of electricity; (f) ensure that the interests and needs of present and future consumers are safeguarded and met having regard to the governance, efficiency, effectiveness and long-term sustainability of the electricity industry; (g) promote specialised programmes to increase the capacity for the effective regulation of the electricity industry and the development, implementation and monitoring of national electricity policy; (h) sensitise the consumers and the public on efficient use of electricity and dangers arising from the supply of electricity; (i) approve, determine, review and regulate tariffs; (j) approve, review and regulate power purchase and power supply agreements; among others. The Act requires a person to obtain authorisation from the Minister prior to undertaking a feasibility study for the development of new electricity projects. Similarly, the unauthorised generation, transmission, distribution or supply of electricity as an intermediary or the operation of a transmission or distribution system is prohibited. The Act grants the President the prerogative to compulsorily acquire land which it may consider necessary for purposes of generation, transmission, distribution or supply of electricity. Furthermore, an authorised officer or licensee may at any reasonable time enter any premises to which electricity is or has been supplied in order to inspect the generating station, transmission or distribution lines, fittings, meters and apparatus. The Act provides that the Energy Regulation Board shall determine tariff or variation of a tariff on the following principles; (a) a tariff shall be fair and reasonable and reflect the cost of efficient business operation; (b) a tariff shall ensure quality of service, predictability of tariff adjustment and reasonable rate of return on capital investment; (c) a tariff shall encourage competition, economical use of the source of the electricity, good performance and optimum investment; (d) a tariff shall reward efficiency in performance; and (e) a tariff shall reflect enforceable standards for the quality and cost of the supply of electricity to retail consumers and non-retail consumers. The Act essentially provides for the rights and duties of retail consumers.

Full text
English