gambia-2005_electricity_bill.pdf

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ELECTRICITY BILL, 2005

ARRANGEMENTOF SECTIONS

Section

PART 1 PRELIMINARY

1. Short title2. Interpretation3. Objectives

PART II FUNCTIONS OF THE DEPARTMENT OF STATE

4. Functions of the Department of State

PART III LICENCES AND LICENSING PROCEDURES

5. Restriction on generating electricity without licence6. Procedures for issuance of licences7. Conditions for issuance of licences8. Rights and duties of licensees, and information filing9. Metering and metering equipment10. Dispute resolution11. Bonds

12. Modifications, suspensions, and revocations13. Restrictions on ownership of licences and transactions14. Generation licences15. Transmission licence16. Dispatch licence17. Distribution licences18. Tariffs and terms and conditions of service19. Tariff principles20. Rules for tariff applications21. Tariff adjustments22. Commencement of new tariffs

23. Uniform accounting standards

PART V MISCELLANEOUS PROVISIONS

24. Regulations25. Repeal of Cap. 66.0126. Transitional provisions: existing operations and interim licences

and fees


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ELECTIRICY BILL, 2005

A BILL ENTITLED

AN ACT to promote the development of theelectricity sub-sector in The Gambia on the basis ofthe principles of a competitive and market-orientedeconomy, to regulate electricity service providers andthe activities of persons required to be licensed andfor matters connected therewith.

[ ]

ENACTED by the President and the NationalAssembly.

PART I PRELIMINARY

Short title 1. This Act may be cited as the Electricity Act, 2005.

Interpretation

2001 No. 2

2. In this Act, unless the context otherwise requires -

Chairperson means the Chairperson of the Board;

Authority means The Gambia Utilities RegulatoryAuthority established under The Gambia PublicUtilities Regulatory Authority Act, 2001;

Board means the Board of the Authority;

Department of State means the Department of

State responsible for the electricity sub-sector;

direct consumer means a person directly connectedto the transmission grid at a delivery point, other thana distribution licensee;

dispatch licence means a licence granted by theAuthority to a licensee to exercise


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(a) dispatch rights over generation licensees andothers, if any, in order to meet therequirements of distribution licensees, directconsumers and others, if any; and

(b) such other rights under this Act as aregranted by the Authority in the licence;

dispatch licensee means a person who is granted adespatch licence under this Act;

distribution licence means a licence granted by theAuthority to a licensee to

(a) receive electric energy deliveries from one ormore grid delivery points and at one or moredistribution receiving points; and

(b) distribute electricity to consumers within adefined geographic area;

distribution licensee means a person who isgranted a distribution licence;

distribution receiving point means a physical point

at which a distribution licensee receives electricenergy directly from a generation licensee, includingfrom a generation licensee directly or indirectlyowned or controlled by the distribution licensee whenso permitted by the Authority;

generation licence means a licence granted by theAuthority to a licensee to connect specifiedgeneration facilities either to the transmission grid ata grid receiving point or to a distribution receivingpoint;

generation licensee means a person who is granteda generation licence under this Act;

grid delivery points means the physical points atwhich the transmission licensees facilities areconnected to the distribution licensees facilities andto the facilities of any direct consumer and, forpurposes of exporting electricity, inter-connectionswith foreign electric systems;


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2001 No. 2

grid receiving point means a physical point at whichthe transmission licensee receives electricity on thetransmission grid, including, for purposes ofimporting electricity, inter-connections with foreignelectric systems;

licence means a generation licence, a transmissionlicence, a dispatch licence or a distribution licence;

licence fee means the fee charged by the Authorityon a person licensed under this Act;

licensee means a person who is granted a licence

by the Authority;

person means a natural or juristic person;

Regulatory Authority Act means The Gambia PublicUtilities Regulatory Authority Act, 2001;

Secretary of State means the Secretary of Stateresponsible for the electricity sub-sector;

service territory means the geographical area within

which a licensee is permitted to operate under alicence;

transmission grid means all the transmissionfacilities at 33 kV or higher, owned or controlled andoperate, by a transmission licensee, as authorized ina transmission licence in effect, from time to time,which connects the grid receiving points to the griddelivery points and includes substations in TheGambia operating above 33kV and all transmissionfacilities, including

(a) substations, operating at 69 kV that arespecifically identified in a transmissionlicence; and

(b) all electric circuits operating at 69kV but notauthorized for ownership and operation by atransmission licensee in any transmissionlicence;


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transmission licence means a licence granted bythe Authority to a licensee to own or control, andoperate, the transmission grid, but not to dispatchelectricity over the transmission grid; and

transmission licensee means a person who isgranted a transmission licence.

Objectives 3. The objectives of this Act are to -

(a) promote the generation, transmission,supply, dispatch and distribution of electricityin The Gambia;

(b) set standards relative to electricity services;

(c) promote electricity efficiency and supplies;

(d) ensure sufficient and reliable electricitysupplies for the population and the economyof The Gambia at just and reasonable rates;

(e) establish cost-effective and reliable elec-tricity supplies for all classes of consumers;

(f) effect a transition to a private investorcontrolled and operated electricity sector inwhich, through competition, where feasible,and regulation in non-competitive markets,prices accurately reflect the costs of efficientproduction, transmission, dispatch, anddistribution of electricity;

(g) establish a framework for the regulation ofthe electric sector;

(h) assign responsibility for overall policydevelopment in the electric sector to theDepartment of State and relieve theDepartment of State from regulatoryresponsibilities in the electricity sub-sector;

(i) encourage private sector investments inelectric sector activities;


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(j) encourage domestic and foreign privatecapital participation in the electric sector;

(k) promote competition in the electricity market;and

(l) encourage the production of electricitythrough the use of renewable energy.

PART II - FUNCTIONS OF THE DEPARTMENT OFSTATE

Functions of the

Department ofState

4. (1) The principal functions of the Department of

State as regards the electric sector are to

(a) establish policies that promote an environ-ment conductive to attracting investments inthe electricity sub-sector in the short,medium and long term;

(b) promote a policy of restructuring and priva-tisation of State enterprises in the electricitysub-sector and establish competition in theelectricity market;

(c) support scientific research and education inthe electric sector;

(d) promote efficiency in the production, trans-mission and distribution of electricity and inthe use of electricity by consumers, andcreate a comprehensive electricity conser-vation programme for The Gambia;

(e) monitor and recommend policies regarding

the effect on the environment of all energyactivities, and incorporate national environ-mental protection goals in the formulationand implementation of the electricity sub-sector policies;

(f) establish policies to promote the estab-lishment of relationships between licenseesand electric sector entities in foreign count-ries, and promote the establishment of


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transit and import and export relationships inthe electric sector.

(g) establish policies

(i) on direct subsidies for electric suppliesto specific customer classes,

(ii) on priority institutional consumers ofelectricity, and

(iii) to enhance electricity security for TheGambia; and

(h) establish a strategy for electric sectoremergency situations.

(2) The Department of State is also responsible forall aspects of the electric sector of The Gambia thatare not the subject of this Act, including theperformance of the electric sector licensing functionsthat are not vested in the Authority or in any otherDepartment of State or agency of the Government.

(3) The Department of State shall, in performing its

functions under subsection (1), relinquish ownershiprights, regulatory supervision and management con-trol of, and operational activities in, the electricsector.

PART III LICENCES AND LICENSING PRO-CEDURES

Restriction ongeneration, etc.of electricitywithout licence

5. (1) Except as provided in this Act, no person shallengage in electric generation, transmission, dispatch,or distribution activities without a valid licence issued

by the Authority.

(2) A licence is not required for -

(a) electricity generation solely for consumptionat the site of the generating facility;

(b) electricity distribution or sub-distribution with-in a single premises or pursuant to a sub-metering arrangement within a single building


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on a non-commercial basis.

Procedures for

the issuance oflicences

6. (1) An application for a licence under this Act shallbe made to the Authority in accordance with-

(a) the Regulatory Authority Act; and

(b) subject to paragraph (a), such other proce-dures as the Authority may determine.

(2) The procedures shall specify the information tobe submitted with an application for a licence,including information concerning the applicantsfinancial strength, credit rating, experience, and

compliance with all laws and regulations, and anyapplication fee required to be paid by the applicant.

Conditions forissuanceof licences

7. (1) The Authority shall advice the Secretary ofState to issue a licence only to a person who

(a) has established competence to operatewithin the electricity sub-sector;

(b) is able to satisfy the service obligationsunder this Act and the conditions to be

included in the licence; and

(c) has satisfied the other requirements of theRegulatory Authority Act.

(2) The Authority shall specify in the licence-

(a) the type of service to which the licenceapplies;

(b) the location of the facilities or the territory to

which the licence applies;

(c) the duration of the licence;

(d) all applicable licence conditions, includingthe requirement of timely payment of licencefees; and

(e) the conditions for licence modification,suspension, or revocation.


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(3) Subject to subsection (4), a licensee shall notdiscontinue service under a licence without the priorconsent of the Authority.

(4) The prior consent of the Authority is notnecessary in the case of a distribution licence, ifinterruption of service is due to non-payment by thecustomer, or to technical or safety reasons, or to theexercise of contractual rights.

(5) The licensee shall relinquish its licence at thetime it receives approval for the discontinuation ofservice.

(6) No licensee is required to continue supplyingelectricity or other electric services in any casewhere another licensee, a direct consumer, or anyother person has failed to meet its paymentobligations under a contract or under an Authorityapproved tariff or terms and conditions for theprovision of the service.

Rights andduties oflicensees, andinformationfilling

8. (1) A licensee shall comply with all

(a) the conditions set out in its licence;

(b) the rules and regulations adopted by theAuthority; and

(c) the laws of The Gambia relating toenvironmental protection, safety, labour,health, taxes, and electric systemperformance and protection.

(2) A licensee shall endeavour to use resources

efficiently, and provide generation, transmission,dispatch or distribution services, as applicable, inaccordance with prudent utility practices.

(3) A licensee, shall submit to the Authority, andmake available to the public

(a) an annual summary of the licenseesactivities for the preceding year;


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(b) an annual work plan describing thelicensees anticipated activities for thefollowing year; and

(c) such other reports, statements andinformation, as the Authority determines tobe necessary or appropriate.

(4) A licensee shall forward to the Department ofstate a copy of every summary, work plan and reportsubmitted under subsection (3).

(5) A licensee who holds a generation licence shallsubmit to the Authority such reports, statements and

information as the Authority deems necessary for thesafe and reliable operation of the transmission gridand connected facilities.

Metering andmeteringequipment

9. (1) A licensee shall measure the quantity ofelectricity flowing through the licensees facilities byusing a metering equipment and procedures thatsatisfy standards and requirements specified in alicence issued under this Act or any other law.

(2) A licensee shall certify to the Authority that its

metering equipment and meter testing facilities com-ply with all applicable standards and requirements.

(3) The Authority may conduct inspection of alicensees metering equipment and meter testingfacilities and may establish its own meter testingfacilities, to ensure continued compliance by thelicensee of the applicable standards andrequirements.

Dispute

resolution

10. (1) A licensee, direct customer or customer of a

distribution licensee that is party to a dispute relatingto the supply of electric power services, whetherunder a tariff determined by the Authority under theRegulatory Authority Act or under a contract, mayrefer the dispute to the Authority for resolution.

(2) The Authority may, in its discretion, order that adispute referred to it under this section be resolved inaccordance with the provisions of any enactmentrelating to competition.


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Bonds 11. The Authority may, before issuing a licence, orreinstating a suspended licence, require a licensee toprovide a bond or any other form of financial securitynecessary to ensure that the licensee satisfies itsservice obligations and adheres to this Act and theconditions of the licence, including the payment ofthe licence fee.

Modification,suspension andrevocation oflicences

12. (1) Without prejudice to the Regulatory AuthorityAct, except where a licence is modified pursuant toits terms and conditions or suspended or revoked fornon-compliance with its terms and conditions, theAuthority may, with the approval of the Secretary of

State, modify, suspend, or revoke a licence issuedunder this Act only with the prior consent of thelicensee.

(2) The Authority may, on granting a new licenceafter a modification, suspension or revocation,require the licensee to comply with different or morestringent requirements than the requirementsincluded in any prior licence.

Restrictions on

multipleownership oflicences and notransactions

13. (1) No person shall hold more than one licence or

own shares or have a business interest in any otherentity that is licensed under this Act, without the priorapproval of the Authority.

(2) A person who exercises, directly or indirectly,ownership or control of a generation licensee,transmission licensee, dispatch licensee or distri-bution licensee shall not own shares in any otherlicensee, without the prior approval of the Authority.

(3) A licensee shall not, without the prior written

approval of the Authority, surrender, assign, orotherwise transfer its licence to any other person.

(4) The Authority may, for any reason consistent withthe purposes of this Act and the public interest,approve, refuse or restrict the carrying on by thelicensee of any of the following activities -

(a) a merger or a major acquisition or sale ofits assets or securities;


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(b) an expansion of its business activities; and

(c) a re- organization of its corporatestructure.

(5) Where a person is authorized to hold more thanone licence, or to exercise, directly or indirectly,ownership or control over more than one licensee -

(a) the licensee shall maintain separate booksof account under the name of eachlicensee, and where the licensed activitiesare not performed by separately incor-

porated entities, the books of accountshall clearly identify the expenses andrevenues attributable to each licensedactivity; and

(b) a default under one licence held by thatperson is deemed to constitute a defaultunder each licence held by that sameperson.

Generation

licences

14. (1) The Secretary of State may, in accordance

with the provisions of the Regulatory Authority Act,issue a licence that authorises the licensee toconnect specifically identified generation facilities to-

(a) the transmission grid for the purpose ofsupplying electric capacity or energy to aspecific grid receiving point; or

(b) the facilities of a distribution licensee forthe purpose of supplying electric capacityor energy to a specific distribution

receiving point.

(2) The duration of each licence shall be stated inthe licence, subject to revocation by the Authority forthe violation of a term or condition of the licence.

(3) A generation licensee shall comply with thefollowing conditions, to -


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(a) subject to subsection (4), submit to theAuthority, for review and approval, therates, terms and conditions for any powersales contract it has with any other licensee;

(b) submit to the Authority, the technical, safetyand interconnection standards for theproposed generation facility;

(c) if connected at a grid receiving point, makethe licensed generation facilities available tothe dispatch licensee at the receiving pointfor the safe, reliable, non-discriminatory andeconomic dispatch and operation of the

transmission grid and connected facilities,pursuant to the terms of its power salescontract or its approved rates and termsand conditions of service;

(d) if connected at a distribution receiving point,make the licensed generation facilitiesavailable to the distribution licensee at thereceiving point for safe, reliable, non-discriminatory and economic dispatch tosupply the distribution licensees load,

pursuant to the terms of its power salescontract or its approved rates and termsand conditions of service;

(e) comply with all applicable requirementsregarding the co-ordination of the operationof generation facilities with the transmissiongrid and distribution facilities, includingreasonable instructions issued by thedispatch licensee or distribution licensee, asapplicable; and

(f) comply with all other terms and conditionsof the licence.

(4) A review and approval shall not be requiredunder subsection (3)(a) if the Authority determinesthat the generation licensee -

(a) intends solely to export electricity from TheGambia; or


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(b) would not have a monopoly of a marketpower in all or any part of The Gambia andhad the rates and the terms and conditionsfor its power sales contracts establishedthrough a competitive process.

(5) The conditions set out in subsection (3) aredeemed to be part of the generation licence.

Transmissionlicence

15. (1) The Secretary of State may, in accordancewith the provisions of the Regulatory Authority Act,issue a licence granting a person the exclusive rightor non-exclusive right to provide a transmission

service using the transmission grid.

(2) The licensee shall identify the transmissionsystem included in the transmission grid to beconstructed, operated, and maintained by thelicensee, which shall include the facilities betweenthe grid receiving points and the grid delivery points.

(3) Where a generation licensees facility has been,or is to be, directly connected to -

(a) a distribution licensees facilities at adistribution receiving point; or

(b) a direct consumers facilities,

the Authority may, after giving sixty days notice tothe generation licensee, distribution licensee or directcustomer, as applicable, deem the interconnectionpoint to be a grid receiving point and a grid deliverypoint separated by a minimum section of thetransmission grid for purposes of establishing

parameters for transmission services.

(4) When a new transmission facility is required inthe transmission grid, the transmission licensee shallapply for a modification to its licence proposing thenew transmission facility.

(5) If, after a notice given and hearing held pursuantto the rules prescribed by the Authority, the Authoritydetermines that the proposed facility is required and


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that the proposed site or route for the facility, as maybe amended at or following the hearing -

(a) will reasonably minimize adverse impactson the area concerned;

(b) is consistent with the policies of theDepartment of State concerning theproposed route as expressed to theAuthority during the hearing; and

(c) complies with the requirements of this Actand regulations made under it,

the Authority shall issue to the transmission licenseea modified transmission licence which shall includethe new transmission facility and authorize itsconstruction at the approved site or on the approvedroute.

(6) If, after a hearing pursuant to subsection (4), thetransmission licensee is authorized to construct anew transmission facility at an approved site or alongan approved route, the transmission licensee shallbe entitled to acquire, by the exercise of eminent

domain, any land required to construct the newtransmission facility at the approved site or along theapproved route.

(7) In exercising the power of eminent domain, thetransmission licensee shall comply with the lawapplicable to the State in similar proceedings.

(8) The duration of a transmission licence is shall bedefined and be subject to revocation by the Authorityfor violation of any term or condition of the licence.

(9) A transmission licensee shall comply with thefollowing conditions, to

(a) develop and maintain the transmission gridin a manner adequate to support the needsof generation licensees, dispatch licen-sees, distribution licensees and directcustomers within The Gambia;


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(b) develop, provide to the Authority and makeavailable to the public an investmentprogramme;

(c) develop and make available reasonableinstructions for the safe, reliable, and non-discriminatory interconnection andoperation of the transmission network andconnected facilities;

(d) charge only those rates, and impose onlythose terms and conditions of service,approved by the Authority under Part IV;

(e) refrain from entering into any otherbusiness arrangement, either within oroutside the electric sector, not related toperforming those activities required orpermitted to be performed under itslicence, including the purchase for resaleof electric capacity or energy; and

(f) timely pay all licence fees imposed by theAuthority; and

(g) comply with all other terms and conditionsof the licence.

(10) The conditions set out in subsection (9) aredeemed to be part of the transmission licence.

Dispatch licence 16. (1) The Secretary of State may, in accordancewith the provisions of the Regulatory Authority Act,issue a licence granting a person

(a) the exclusive right or a non-exclusive right

to operate a central dispatching controlcentre for the transmission grid, includingthe right to install and maintain suchequipment as is necessary to operate thecontrol centre; and

(b) a non-exclusive right, within The Gambia,to purchase and resell electric capacity,electricity and transmission services todistribution licensees, direct consumers


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and other foreign or domestic persons asrequired or permitted by the Authority.

(2) The duration of a dispatch licence shall bedefined and be subject to revocation by the Authorityfor violation of any term or condition of the licence.

(3) A dispatch licensee shall comply with thefollowing conditions, to

(a) plan for and secure adequate electricsupplies, including electric supplies fromforeign persons, and transmission servicesto satisfy the needs of distribution licen-

sees and direct customers;

(b) develop and co-ordinate with all otherlicensees, under the supervision of theAuthority, contingency and emergencyplans consistent with Department of Statepolicy to be implemented in contingencysituations or when an emergency isdeclared by the President of the Republicof The Gambia;

(c) develop and provide to the Authority andmake available to the public an investmentprogramme;

(d) charge only those rates and impose onlythose terms and conditions of serviceapproved by the Authority;

(e) refrain from entering into any otherbusiness arrangements, either within oroutside the electric sector, not related to

performing those activities required orpermitted to be performed under itslicence, including the purchase for resaleof electric capacity or energy; and

(f) comply with all other terms and conditionsof the licence.

(4) The conditions set out in subsection (3) aredeemed to be a part of the dispatch licence.


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(5) Where a distribution licensee or direct customerhas contracted directly with -

(a) one or more generation licensees or otherforeign or domestic persons to meet partor all of its electric supply requirements;or

(b) the transmission licensee for transmissioncapacity,

a dispatch licensee shall not be responsible forobtaining back-up or stand-by electric supplies or

transmission capacity under the condition set out insubsection (3)(a), unless the distribution licensee ordirect customer has paid the appropriate ratesapproved by the Authority for the services.

Distributionlicence

17. (1) The Secretary of State may, in accordancewith the provisions of the Regulatory Authority Act,issue a licence granting a person the exclusive rightto engage in the distribution of electric power within adefined contiguous geographic region.

(2) The duration of each licence shall be defined andbe subject to revocation by the Authority for violationof any term or condition of the licence.

(3) Where one or more parts of a distributionlicensees distribution system are not connected tothe transmission grid, the distribution licensee shallown, maintain and operate a local control centre foreach non-connected portion of the distributionsystem under its control.

(4) A distribution licensee shall comply with thefollowing conditions, to -

(a) extend distribution services to consu-mers, consistent with the eligibility criteriaestablished by the Authority and with thedistribution licensees investment pro-gramme;


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(b) operate a local dispatching control centrefor balancing loads with electric suppliesreceived at distribution receiving points;

(c) obtain sufficient

(i) transmission capacity from thetransmission licensee or thedispatch licensee, whenavailable, and

(ii) capacity and electric suppliesfrom generation licensees, otherforeign or domestic persons, and

the dispatch licence (if providingthose services),

to meet its customers requirements on aleast cost, continuous and reliable basis;

(d) establish procedures approved by theAuthority for obtaining and terminatingservice, metering, billing and collection;

(e) develop and provide to the Authority, and

make available to the public aninvestment programme;

(f) charge only those rates, and impose onlythose terms and conditions of serviceapproved by the Authority under Part IV;

(g) make available to the public in thelicensees offices

(i) the licensees licence and approved

tariffs,

(ii) the licensees approved conditionsof service governing procedures forobtaining and terminating services,

(iii) the licensees approved terms ofservice governing metering, billingand collection, and


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(iv) a description of the performancestandards applicable to the licen-see, including outage standardsand time required to connect newcustomers;

(h) timely pay all license fees imposed by theAuthority; and

(i) comply with all other terms and conditionsof the licence.

(5) The conditions set out in subsection (4) aredeemed to be a part of the distribution licence.

(6) If the Authority revokes a distribution licence for -

(a) delays in the payment by thedistribution licensee of any fees, asrequired by the Authority;

(b) failure of the distribution licensee torender satisfactory service under itsdistribution licence; or

(c) non-compliance with the terms andconditions of the distribution licence,

the Department of State may, at its option, purchasefor a sum equal to a fair market value all or any partof the distribution system properties of thedistribution licensee, other than cash, accountsreceivable, bonds, notes, stocks or other securitiesowned or held by the distribution licensee.

(7) The distribution licensee is not entitled to any

payment for the value of its distribution licence or forthe valuation of good will.

(8) The fair market value of the distribution systemproperties payable by the Department of State to thedistribution licensee is determined as follows -

(a) the Department of State and thedistribution licensee shall each, withinthirty days after the date of revocation of


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the distribution licence, designate in writingand deliver to the other the name of adisinterested independent appraiser;

(b) each appraiser shall make its own inde-pendent appraisal of the system to bepurchased; and

(c) on completion of the appraisal, theappraisers shall exchange their appraisalsand each appraiser shall send a copy ofhis or her appraisal to the Department ofState and the distribution licensee, andthereafter, negotiate a fair market

purchase price.

(9) If, one hundred and twenty days after thenegotiation, the Department of State and distributionlicensee fail to agree on a fair market valuepurchase price, the Department of State mayexercise its powers of eminent domain to acquiresuch of the distribution system properties of thedistribution licensee as the Department of Statedetermines are required to provide continuousuninterrupted service in the distribution licensees

area of supply.

(10) in this section -

fair market value means the sum which wouldbe paid by a willing purchaser to a willing sellerdealing at arms length determined asprovided in subsection (9).

PART IV TARIFFS

Tariffs andterms andconditions ofservice

18. The Authority may, in accordance with theprovisions of Regulatory Authority Act, determine,review, approve, modify or refuse the tariffs and theterms and conditions of service provided bylicensees, except as otherwise provided in this Act.

Tariff principles 19. (1) The Authority shall, in determining tariffs forelectricity power services under section 18,, take intoaccount the need to


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(a) protect consumers against monopolisticprices;

(b) provide licensees with an opportunity torecover-

(i) the efficient costs of providing serv-ices, including prudently incurredcapacity, transmission, fuel, operat-ing, and maintenance costs,

(ii) the principal and interest on moneyborrowed for prudent investmentsand working capital, and

(iii) a just and reasonable profit on in-vested equity, sufficient to attractfinancing for capital improvementsand new construction;

(c) encourage efficiency in internal operationsand management practices by allowing alicensees financial returns to increase as aresult of the licensee having minimized itscosts of providing service, if the licensee

meets all the requirements of its licenceconcerning the provision and quality ofservice;

(d) adhere to Department of State policyrelating to priority institutional consumersfor electricity supply, but no Department ofState policy shall prevent a licensee fromexercising any right granted in its licence todisconnect service to any person for failureto meet his or her payment obligations

under any contract or approved terms andconditions of service;

(e) adhere to Department of State policyrelating to subsidies to the extent that fundshave been expressly made available to thelicensee for that purpose within areasonable period;


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(f) reflect cost and other appropriate differ-ences between classes of customers andtype of service, subject to applicable directsubsidies; and

(g) provide for costs to be recovered from eachcustomer class in proportion to the costs ofserving that class.

(2) The Authority may, in imposing a condition undersubsection (1), consider -

(a) each licensees tariff application and estab-lish different tariffs for each customer class

to reflect the quantity of peak, average oroverall usage, the season, the time of day,the types of services purchased or similarparameters; and

(b) performance-based tariffs, including valueadded tariffs, revenue indexing, price index-ing, and other innovative tariff methodo-logies, if the Authority finds that the use ofthose methodologies is in the interest of thelicensee and its consumers.

Rules for tariffapplications

20. The Authority shall make rules for licenseesconcerning

(a) the evidentiary requirements for tariffapplications, including audited financialinformation;

(b) the time frames for tariff applications anddecisions;

(c) the procedures for customers and otherinterested parties to comment on tariffapplications;

(d) the procedures for the Authority toobtain additional information as necess-ary to evaluate tariff applications; and

(e) refund protection for customers whiledecisions on tariff are pending.


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Tariffadjustments

21. (1) The Authority may require a licensee who hascost of service-based tariffs to submit an applicationfor adjustment to rates at intervals of not less thanone year from the date of issuance of the licence orof the licensees last filed rate application, asapplicable, whichever is later.

(2) Where the Authority has approved a perform-ance-based tariff for a licensee, the Authority mayrequire the licensee to submit an application for anadjustment to the rates at an interval of not less thanseven years from the date of issuance of the licenceor of the Authority approving the performance-based

tariff, as applicable, whichever is later.

(3) The Authority shall consider a rate applicationfiled by a licensee at any time if the applicationentails a reduction of rates or an increase due toevents beyond the control of the licensee.

Commencementof new tariffs

22. A tariff shall, if approved by the Authority, comeinto force ninety days after the date of submission tothe Authority of the application for review andapproval, subject to refund, if any, of any tariff paid

before the determination of the application.

Uniformaccountingstandards

23. (1) The Authority shall establish a uniform andstandardized system of accounts based on intern-ationally accepted accounting standards which shallbe used by all licensees for financial and economicreporting to the Authority.

(2) The Authority shall use the financial and eco-nomic reporting by licensees, and its own analysisusing the system of accounts, as the basis for

calculating tariffs.

PART V MISCELLANEOUS PROVISIONS

Regulations 24. The Authority may, with the approval of theSecretary of State, make regulations for the bettercarrying out of the purposes of this Act.


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Repeal ofCap. 66:01

25. The Gambia Utilities Corporation Act is herebyrepealed and regulations made under it are herebyrevoked.

Transitionalprovisions:existingoperations, andinterim licencesand fees

26. (1) A person who is engaged in activitiesrequiring a licence under this Act on the day this Actcomes into force is deemed to hold an interim licencefor the purposes of those activities for a period of twoyears, unless the interim licence is extended,modified or earlier terminated by the Authority.

(2) An interim licence shall permit an interim licenseeto continue to undertake the activities requiring thelicence.

(3) An interim licence is not transferable.

(4) The Authority may by rule, regulation, or order,impose such requirements on one or more interimlicensees as it deems appropriate, including -

(a) the payment of interim licence fees; and

(b) any requirement the Authority may by rule,regulation, or order, or as a condition to

granting a licence, impose on a licenseeunder this Act.

(5) The Authority may by order extend, modify, orterminate an interim licence for the purpose ofeffecting a re-organization of the electricity sub-sector or for the purpose of effecting an orderlytransition of the electricity sub- sector under this Act.

(6) Notwithstanding the provisions of section 12, aninterim licence may be modified or terminated by the

Authority without regard to the performance of theinterim licensee during the duration of the interimlicence.

(7) The Authority may, on its own volition orapplication from the Department of State, licensee,or an interim licensee, establish a procedure for theextension, modification or termination of an interimlicence.


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(8) The Authority shall, when considering a materialmodification or the termination of an interim licence,give prior notice to the Department of State and theinterim licensee, and provide an opportunity for theDepartment of State and the interim licensee to beheard.

(9) An interim licensee may, before the expiration ofan interim licence, apply to the Authority for theappropriate licence, as applicable.

(10) The tariffs of interim licensees in force on theday this Act comes into force shall remain in effectuntil determined by the Authority, and the Authority is

deemed to have determined the rate changes foreach interim licensee to the same extent as theAuthority may impose an interim licence fee on thatinterim licensee.

(11) The Authority may impose interim licence feeson one or more interim licensees and publish thelicence fees applicable, but the Authority

(a) shall not impose interim licence fees onthe basis of load forecasts;

(b) may impose interim licence fees for anyperiod; and

(c) shall calculate the interim fees on suchbasis as the Authority reasonablydetermines is likely to cover its budgetedexpenses for its next budget period.


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OBJECTS AND REASONS

The objectives of the Bill, among others, are to

(a) promote the generation, transmission, supply, dispatchand distribution of electricity in The Gambia for public,domestic and industrial purposes;

(b) set standards relative to electricity services;

(c) promote energy efficiency and supplies;

(d) assure sufficient and reliable electric supplies for allclasses of consumers;

(e) establish cost-effective and reliable electric supplies for allclasses of consumers;

(f) determine adequate rates, charges and fees in relation otelectricity and relative methods of collection thereof forservices rendered to all classes of users; and

(g) effect a transition to a private investor controlled andoperated electricity sector in which, through competition,where feasible, and regulation in non-competitivemarkets, prices accurately reflect the costs of efficientproduction, transmission, dispatch, and distribution ofelectricity.

The responsibility for overall policy development in the electricsector rests with the Department of State, which will, among otherthings, be responsible for

(a) establishing policies that promote an environmentconductive to attracting investments in the constructionand rehabilitation of the electric sector in the short,medium and long term;

(b) promoting efficiency in the production, transmissionand distribution of electricity and in the use of electricityby consumers, and creating a comprehensiveelectricity conservation programme for The Gambia;


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(c) monitoring and recommending policies regarding theeffect on the environment of all energy activities, andincorporating national environmental protection goals inthe formulation and implementation of energyprogrammes.

The Gambia Public Utilities Regulatory Authority is vested with thepower to administer the Bill in accordance with the provisions of theBill and The Gambia Public Regulatory Authority Act, 2001.

YAHYA A.J.J. JAMMEHPRESIDENT OF THE REPUBLIC OF THE GAMBIA

AND SECRETARY OF STATE FOR ENERGY

Documents

gambia-2005_electricity_bill.pdf