Electricity Act, 1987 (Act No. 41 of 1987)

13. Prohibition on Transfer of Right to Supply without Approval of Regulator

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(1)Subject to the provisions of subsection (2), no undertaker shall transfer his undertaking or any part thereof or his right of supply to any other undertaker or prospective undertaker without the approval of the regulator.

 

(2)Any undertaker who has before the commencement of this Act, in terms of an agreement with a local authority, obtained a right to supply electricity within the area of jurisdiction of that local authority, shall be exempted from the provisions of this section.

 

(3)An application for approval of the transfer of an undertaking or any part of an undertaking or of a right to supply may be made by the transferor or transferee and shall be accompanied by the information required by the regulator, and a copy of the application must be served by the applicant on the transferee or transferor, as the case may be.

 

(4)The regulator may at its discretion require the applicant to publish a notice of such application in the form approved by the regulator, in a newspaper circulating in the area in which the undertaking or part of the undertaking is carried on.

 

(5)Any objection to the approval of the application shall, if a notice was published in terms of subsection (4), be lodged with the regulator within 60 days after publication thereof, and the regulator may at its discretion hear the objections in public at a time and place of which at least 14 days' notice shall be given to the applicant, the transferor or transferee, as the case may be, and every objector.

 

(6)If the regulator is of the opinion that it is in the interest of the efficient supply of electricity or the consumers of electricity or in the public interest, it may approve an application referred to in subsection (3) on the conditions determined by it, and the transfer shall take effect 12 months after the decision of the regulator has been made known, unless the transferor and the transferee agree on an earlier date.

 

(7)If there are any assets involved in the transfer, the transferee shall compensate the transferor in terms of section 14 for the reasonable value thereof.

 

(8)No provision of this Act shall prohibit an undertaker to enter into an agreement with any other person in terms of which such person shall erect, manage or carry on such undertaking or any part of the undertaking on behalf of the undertaker: Provided that the undertaker shall not be absolved from his powers and obligations under this Act.

 

(9)
(a)An undertaker who wishes to transfer his undertaking, or a part thereof, to another undertaker in terms of this section, may also transfer to such other undertaker, by way of a deed of cession attested by a notary, any servitude or other similar right in terms of which he may effect improvements on or over particular land and may conduct electricity over such land, irrespective of whether or not the permission of the owner of that land has been obtained, and the relevant Registrar of Deeds shall make such entries or endorsements in or on any relevant register, title deed or other document in his office or submitted to him as he deems necessary to give effect to the provisions of this section.
(b)No office fees or other levies are payable in respect of such entry or endorsement.
(c)Any transfer that took place prior to the date of commencement of this subsection and which could have taken place in terms of the provisions of paragraph (a) if paragraph (a) existed prior to such date, shall be deemed to have taken place in terms of the provisions of paragraph (a).

[Section 13(9) inserted by section 3 of Act No. 58 of 1989]