Electricity Regulation Act, 2006 (Act No. 4 of 2006) Regulations Electricity Regulations on New Generation Capacity, 2011 1. Definitions

 

In these Regulations, any word or expression to which a meaning has been assigned in the Act, shall have the meaning so assigned and, unless the context otherwise indicates—

 

"ancillary services"

[Definition deleted by regulation 2(a) of Notice No. R. 1366 of 2016]

 

"buyer"

means, in relation to a new generation capacity project, any organ of state designated by the Minister in terms of section 34(1)(c) and (d) of the Act;

 

"cross border project"

means a new generation capacity project in respect of which the generation facility is situated outside of the Republic;

 

"existing generation facilities"

means generation facilities that are in operation on or immediately prior to the date of the relevant determination in terms of section 34(1) of the Act;

[Definition substituted by regulation 2(b) of Notice No. R. 1366 of 2016]

 

"Eskom"

means Eskom Holdings Limited contemplated in section 3(1) of the Eskom Conversion Act, 2001 (Act No. 13 of 2001);

 

"Government"

means the Government of the Republic;

 

"Independent Power Producer" or "IPP"

means any person in which the Government or any organ of state does not hold a controlling ownership interest (whether direct or indirect), which undertakes or intends to undertake the development or creation of new generation capacity pursuant to a determination made by the Minister in terms of section 34(1) of the Act;

[Definition substituted by regulation 2(c) of Notice No. R. 1366 of 2016]

 

"interconnected distribution power system"

means a distribution power system that is interconnected to a transmission power system either directly or through interconnection to another distribution power system where the latter system is directly or indirectly interconnected to a transmission power system;

[Definition inserted by regulation 2(d) of Notice No. R. 1366 of 2016]

 

"Integrated Development Plan"

means an integrated development plan contemplated in section 25 of the Municipal Systems Act;

[Definition inserted by section 2(a) of Notice No. 1093, GG43810, dated 16 October 2020]

 

"IPP procurement programme"

means a procurement process undertaken for the procurement of new generation capacity from IPPs;

 

"Minister"

means the Minister of Mineral Resources and Energy;

[Definition substituted by section 2(b) of Notice No. 1093, GG43810, dated 16 October 2020]

 

"national transmission company" or "NTC"

means the person licensed to execute the national transmission responsibility, in its capacity as such, including the transmission network service provider which maintains and develops the transmission network, but excluding the system operator;

 

"national transmission power system"

means the interconnected transmission power system used for the supply of electricity to customers across the territory of the Republic;

[Definition inserted by regulation 2(e) of Notice No. R. 1366 of 2016]

 

"National Treasury"

means the National Treasury established by section 5 of the Public Finance Management Act, 1999 (Act No. 1 of 1999);

 

"new generation capacity"

means electricity or electricity capacity sold or made available, or generation capacity connected, to the national transmission power system or an interconnected distribution power system, pursuant to a determination in terms of section 34(1) of the Act, which is derived from―

[Definition substituted by regulation 2(f) of Notice No. R. 1366 of 2016]

 

"new generation capacity project"

means a project for the development of new generation capacity pursuant to a determination made by the Minister in terms of section 34 of the Act;

 

"new generation facilities"

means generation facilities that are in operation on or immediately after the date of the relevant determination in terms of section 34(1) of the Act;

[Definition inserted by regulation 2(h) of Notice No. R. 1366 of 2016]

 

"organ of state"

bears the meaning ascribed to it in section 239 of the Constitution;

 

"Peaker Project"

means the new generation capacity project to establish generation facilities at Avon in the Kwazulu Natal Province and Dedisa in the Eastern Cape Province;

 

"power purchase agreement" or "PPA"

means an agreement for the sale and purchase of new  generation capacity or;

[Definition substituted by regulation 2(i) of Notice No. R. 1366 of 2016]

 

"procurer"

means the person designated by the Minister in terms of section 34 as being responsible for the preparation, management and implementation of the activities related to  procurement of new generation capacity under an IPP procurement programme including the negotiation of the applicable power purchase agreements, which person may or may not be the buyer;

 

"Public Finance Management Act"

means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

 

"seller"

means a person who concludes a power purchase agreement with a buyer in terms of which such person undertakes to sell or make available new generation capacity to the buyer;

[Definition inserted by regulation 2(j) of Notice No. R. 1366 of 2016]

 

"system operator"

means the person responsible for short-term reliability of the interconnected power system, which is in charge of controlling and operating the transmission power system and dispatching generation facilities (or balancing the supply of and demand for electricity) in real time, in its capacity as such;

 

"the Act"

means the Electricity Regulation Act, 2006 (Act No. 4 of 2006);

 

"value for money"

means that the new generation capacity project results in a net benefit to the prospective buyer or to Government having regard to cost, price, quality, quantity, risk transfer or a combination thereof, but also where applicable to the Government's policies in support of renewable energy.