The Regulator shall, when determining licence conditions relating to prices, charges and tariffs, ensure that the buyer is able to recover, at least, the full amount of the costs incurred by the buyer in the following categories:
| (a) | all payments made for the purchase of new generation capacity, in terms of a power purchase agreement entered into in terms of or as contemplated in these Regulations; |
| (b) | all amounts paid by the buyer in terms of the power purchase agreement (other than those referred to in paragraphs (a) and (e)), provided that the buyer shall have acted efficiently in the exercise of those rights and the fulfilment of those obligations in terms of the power purchase agreement which gave rise to such payments; |
| (c) | the efficiently incurred costs of the buyer m performing any function contemplated in these Regulations; |
| (d) | the efficiently incurred costs of the buyer in administering power purchase agreements; |
| (e) | costs of, and amounts paid by the buyer arising from the termination of a power purchase agreement; and |
| (f) | all other costs efficiently incurred by the buyer in participating in an IPP procurement programme and in purchasing new generation capacity through new generation capacity projects, including, without limitation, operating expenditure, professional fees and hedging costs. |
