PRESIDENT'S
OFFICE
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- No. 1523.
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4 October 1995
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- NO. 60 OF 1995:
ELECTRICITY AMENDMENT ACT, 1995.
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- It is hereby notified that
the President has assented to the following Act which is hereby
published for general information:-
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- GENERAL EXPLANATORY NOTE:
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- << >> Words
between pointed brackets indicate insertions in existing enactments.
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ACT
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- To amend the Electricity
Act, 1987, so as to declare the National Electricity Regulator a
juristic person; to make provision for
the appointment, conditions
of employment and functions of the chief executive officer and
employees of the said National Electricity
Regulator; and to make
provision for the funding and accountability of and reporting by the
said National Electricity Regulator;
and to make provision for
matters in connection therewith.
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- (English text signed
by the President.) (Assented to 28 September 1995.)
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BE IT ENACTED by the
Parliament of the Republic of South Africa, as follows:- Amendment
of section 1 of Act 41 of 1987, as amended
by section 1 of Act 46 of
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1994
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- 1. Section 1 of the
Electricity Act, 1987 (hereinafter referred to as the principal
Act), is hereby amended-
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- (a) by the insertion
before the definition of "consumer" of the following
definition:
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- " <<'chief
executive officer' means the chief executive officer pointed in
terms of section 5A(1);>>";
and
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- (b) by the insertion
after the definition of "Eskom" of the following
definition:
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- " '<<financial
institution' means a financial institution as defined in section 1
of the Financial Services Board
Act, 1990 (Act No. 97 of
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1990);>>".
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- Insertion of section 2A in
Act 41 of 1987
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- 2. The following section
is hereby inserted in the principal Act, after section 2:
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- "Juristic
personality of regulator
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- <<2A. The regulator
shall be a juristic person>>.". Insertion of sections 5A,
5B, 5C and 5D in Act 41 of 1987
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3. The following sections
are hereby inserted in the principal Act after
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section 5:
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- "Appointment and
functions of chief executive officer
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<<5A. (1) The Minister
shall appoint a member of the regulator as chief executive officer
of the regulator.
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(2) The
chief executive officer-
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- (a) shall be responsible
for the management of-
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- (i) the affairs of the
regulator in accordance with the provisions of this Act and
subject to the directions of the Minister
and the regulator; and
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- (ii) administrative
control over the employees appointed under paragraph (b);
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- (b) may, subject to
paragraph (c) and on such conditions as the regulator may
determine, appoint such employees as may be required
to perform the
work connected with the functions of the regulator;
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- (c) shall pay such
employees such remuneration, allowances, subsidies and other
benefits as the regulator may determine in accordance
with a
remuneration structure approved from time to time by the Minister
with the concurrence of the Minister of Finance;
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- (d) may from time to time
on such conditions as he or she may determine-
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- (i) provide collateral
security, including guarantees, to a financial institution in
respect of a loan granted to any employee
of the regulator by such
financial institution to enable such employee
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to acquire, improve or
enlarge immovable property for the
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purposes of occupation; and
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- (ii) establish and
manage or cause to be managed medical aid schemes and bursary
schemes for purposes of study for such employees
and their
dependants.>>
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- Funds of regulator
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- <<5B. (1) The funds
of the regulator shall consist of- (a) licence fees obtained under
subsection (2);
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(b) donations or
contributions received from any person, institution, government or
administration; and
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- (c) interest on
investments.
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- (2) The Minister may, on
receipt of the business plan and statement referred to in
subsection (5)(b), by notice in the Gazette
prescribe licence fees
that are payable by licensed generators of electricity.
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- (3) Licence fees referred
to in subsection (2) shall- (a) only be imposed after-
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(i) the amount and
composition thereof and motivation therefor, based
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on the business plan
submitted in terms of subsection (5) (b), have been published for
comment and any resulting comment has
been considered; and
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- (ii) the business plan
and statement referred to in subsection (5)(b)
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have been approved;
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- (b) be valid for the
period specified in the notice referred to in subsection (2);
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(c) be payable in respect of
the electricity, calculated in kilowatt hours, generated for supply
by any licensee concerned during
the previous calender year;
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- (d) be payable by such
licensee at the times and in the instalments determined by the
regulator; and
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- (e) bear interest, in the
case of non-payment or late payment, at such rate as the regulator
may determine.
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- (4)(a) The regulator-
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- (i) shall utilise its
funds to defray expenses in connection with the performance of its
functions; and
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- (ii) may, with the
approval of the Minister, granted with the concurrence of the
Minister of Finance, establish and manage
or cause to be managed a
pension or provident fund or an alternative pension or provident
fund for its employees.
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- (b) Donations and
contributions referred to in subsection (1)(b) shall-
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- (i) only be accepted
with the approval of the Minister, granted with the concurrence of
the Minister of Finance; and
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- (ii) be utilised in
accordance with the conditions determined by the donor or
contributor concerned with such approval and
concurrence.
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- (5) The regulator-
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- (a) may, with the
approval of the Minister, granted with the concurrence of the
Minister of Finance, authorise the chief executive
officer to
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invest any unspent portion of
the funds of the regulator: Provided that any surplus at the end of
a financial year shall be
carried over to the next financial year
and be utilised to defray expenses incurred by the regulator during
that financial
year;
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- (b) shall during each
financial year, at such time as the Minister may determine, submit
a business plan and statement of the
regulator's estimated income
and expenditure during the following financial year to the Minister
for his or her approval, granted
with the concurrence of the
Minister of Finance;
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- (c) shall for the purposes
of the Income Tax Act, 1962 (Act No. 58 of
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1962), be deemed to be an
institution contemplated in section
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10(1)(cA)(i) of that Act>>.
Accounting and accountability
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<<5C. (1) The chief
executive officer shall be the accounting officer of the regulator
and shall-
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- (a) open an account in
the name of the regulator with a financial institution and shall
deposit therein all moneys received
in terms of section 5B(1);
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- (b) cause proper records
to be kept of all financial transactions, assets and liabilities of
the regulator; and
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- (c) as soon as possible
after the end of each financial year, cause to be prepared a
statement of the income and expenditure
of the regulator for that
financial year and a balance sheet of its assets and liabilities
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as at the end of that
financial year.
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- (2) The records,
statement and balance sheet referred to in subsection (1) shall be
audited by the Auditor-General.
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- (3) The financial year of
the regulator shall be the period ending on 31 March in each
year>>.
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- Reporting
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- <<5D. (1) The
regulator shall-
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- (a) furnish the Minister
with such information and particulars as he or she may from time to
time require in connection with
the affairs and financial position
of the regulator; and
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- (b) annually, within six
months after the end of the financial year, submit to the Minister
a report with regard to the functions,
affairs and financial
position of the regulator in respect of that financial year.
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- (2) Without derogating
from the generality of the provisions of subsection (1) (b), the
annual report referred to in that subsection
shall inter alia
include-
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(a) an
audited balance sheet and statement of income and expenditure,
including any notes thereon and documents annexed thereto
whereby
relevant information is provided;
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- (b) particulars of any
donations or contributions received under section
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5B(1)(b);
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- (c) information regarding
licences granted, renewed, amended, transferred, ceded, suspended
or withdrawn;
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- (d) the report on the
audit referred to in section 5C(2);
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- (e) a report regarding the
execution of the business plan of the regulator; (f) a report
regarding the envisaged strategies of
the regulator; and
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(g) such other information as
the Minister may from time to time determine.
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- (3) The annual report
submitted in terms of subsection (1)(b) shall be tabled in
Parliament by the Minister within 14 days after
receipt thereof or,
if Parliament is not then in session, within 14 days after the
commencement of the next ensuing session>>.".
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- Amendment of section 28 of
Act 41 of 1987, as amended by section 10 of Act 46 of
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1994
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- 4. Section 28 of the
principal Act is hereby amended by the deletion of paragraph (p) of
subsection (1).
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- Short title
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- 5. This Act shall be
called the Electricity Amendment Act, 1995.
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