Service Contract No 2007 / 147-446 Strategic ... - Swaziland

Piece of legislationThe Wages Act No 16(1964)Electricity Act (2007)Energy RegulatoryAuthority Act (2007)Swaziland ElectricityCompany Act (2007)Description / relevance to the NASThe Act provides for the establishment of a Wages Advisory Board andWages Councils, for the regulation of minimum wages and conditions ofemployment of employees through wage regulations orders.International trends and developments necessitated the restructuring ofthe Electricity Supply Industry in the country. The MNRE developed newlegislation to govern the electricity sector and to liberalise the electricitysupply industry in the country. This included the amendment of theElectricity Act of 1963 to the Electricity Act of 2007, the formulation ofSwaziland Electricity Company Act of 2007 and the Energy RegulatoryAct of 2007. Liberalisation of the electricity supply industry aimed to allownew players into the sector, to stimulate competition, improve economicand operational efficiency in the industry.The Act seeks to regulate the electricity supply industry through theissuance of licences for persons generating, transmitting, distributing orsupplying electricity, or importing electricity into or exporting electricityfrom the country.The Act also seeks to promote rural electrification as priority for powersector policy by promoting, supporting and providing rural electrificationprogrammes through public and private sector participation. The Actseeks to promote expansion of the grid and development of off-gridelectrification and maximise the economic, social and environmentalbenefits.The Electricity Act of 2007 provides for the regulation of the ElectricitySupply Industry in Swaziland. It regulates the generation, transmission,distribution and supply of electricity. Any person generating, transmitting,distributing or supplying electricity in the country is required to be licensedby the Energy Regulatory Authority. Power activities for which a license isrequired are as follows: (i) generation of electricity; (ii) transmission ofelectricity; (iii) performing the functions of integrated power systemoperator; (iv) distribution of electricity; (v) supply of electricity; (vi) off-gridand mini-grid supplies of electricity; (vii) importing and exporting electricityinto or outside of the Kingdom.People or entities that do not need a license to generate, transmit,distribute and supply electricity are the following:(i) any person whogenerates, transmits or distributes electricity for his own use; (ii) anyperson who sells less than 1GWh of electricity per annum to customers;(iii) off -grid and mini-grid schemes specifically exempted by the Ministerunder his powers.In terms of the NAS and its support for the cogeneration of electricity frombiomass, the provisions of the Act relating to licences to generate powerand conditions associated with that, would need to be upheld.The Act establishes an independent Energy Regulatory Authority. Thefollowing powers and functions have been given to the Authority:(i) toreceive and process applications for licenses; (ii)to modify / varylicenses; (iii) to approve tariffs, prices, charges and terms and conditionsof operating a license; (iv)to monitor the performance and the efficiencyof licensed operators.The Swaziland Electricity Company Act of 2007, which converts SEB intoa company called "Swaziland Electricity Company" to take over assets,liabilities, rights and obligations of SEC. The objectives of the companyare to generate, transmit, distribute and supply electricity also to importand export it into and out of Swaziland. This new company will be subjectto regulation by the Energy Regulatory Authority.RDMU (Strategic Environmental Assessment of the National Adaptation Strategy) - Page 168