Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Schedules

Schedule 2 : Exemption from obligation to apply for and hold a licence

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1.For purposes of items 2 and 6 any word or expression to which a meaning has been assigned in the Act, has the meaning so assigned and, unless the context indicates otherwise—

 

1.1"Capacity" means, in respect of a Unit or the Facility, at any time and from time to time, the output power (expressed in megawatts or MW) of such Unit, or the Facility, as the case may be;
1.2 "Code" means the Distribution Code, the Transmission Grid Code or any other Code, approved by the Regulator;
1.3 "Connection Agreement" means an agreement detailing the conditions under which the Distributor or Transmitter intends to connect Customer or any other connection such as an Embedded generator;
1.4 "Delivery Point" means the physical point(s), situated on the Site of the Facility, where the energy output is to be delivered by the generator;
1.5 "Demonstration Purposes" means the Facility constructed for the purpose to prove or test
1.5.1 technical viability
1.5.2commercial technical viability,

within a specified time period;

1.6 "Embedded Generator" means a legal entity that operates one or more Unit(s) that is connected to the distribution system. Alternatively, a legal entity that desires to connect one or more Unit(s) to the distribution system;
1.7 "Facility" means the generation (or distribution facility or energy storage as applicable) located at the Site and comprising all plant, machinery and equipment, all associated buildings, structures, roads on the Site that are not national, provincial or municipal roads, and other appurtenances, together with all required interfaces to be constructed for the safe, efficient and timely operation of that facility and, for the avoidance of doubt, excluding the transmission connection works or distribution connection works, as the case may be;
1.8"Point of Connection" means the electrical node on a distribution or transmission system where a Customer's  assets are physically connected to the licensed Distributor's or Transmitter's assets;
1.9"Property" means:
1.9.1 a farm, agricultural holding, erf or sectional title unit; and
1.9.2 a building located on that farm, agricultural holding, erf or sectional title unit, notwithstanding that the building extends beyond the boundary of that farm, agricultural holding, erf or sectional title unit;
1.10 "Reseller" means a person or entity registered by the Regulator who purchases electricity from a trading licensee in order to sell such electricity to a customer;
1.11 "Site" means part of the Property upon which the Facility is to be constructed and operated;
1.12 "Unit" means a separate electricity generating unit or section (comprising multiple units) forming part of the Facility, which is or are capable of generating and delivering energy to the Delivery Point, and "Units" means all or any combination of them;
1.13 "Wheeling" means conveyancing of electricity from the Point of Connection to a point of consumption through a third-party transmission or distribution network;

 

Activities exempt from licensing and registration

 

2.The following activities are exempt from the requirement to apply for, and hold a licence under the Act and these activities are not required to be registered with the Regulator—
2.1 The operation of a generation Facility with or without energy storage for the sole purpose of providing standby or back-up electricity in the event of, and for a duration no longer than, an electricity supply interruption.
2.2 The operation of any generation Facility with or without energy storage irrespective of capacity (MW), where the Facility does not have a Point of Connection.
2.3The generation Facility is operated to supply electricity to one or more customers and there is no Wheeling of that electricity.
2.4The operation of a Facility with a capacity of no more than 100 kilowatts which complies with the Code and has a Point of Connection, the Distributor has prescribed the conditions relating to the continued use of the Point of Connection; and the Regulation has prescribed the manner in which the Distributor shall keep a register of each Facility.

 

Activities exempt from licensing, but which must comply with the Code and must be registered with the Regulator

 

3.The following activities are exempt from the requirement to apply for and hold a licence under the Act, but these activities, excluding activities listed in 2 above, must comply with the Code and must be registered with the Regulator—
3.1 The operation of a generation Facility with or without energy storage, irrespective of size or capacity, with a Point of Connection on the transmission or distribution power system, in circumstances where—
3.1.1 the generation Facility is operated to supply electricity to one or more customers by Wheeling and the generator has entered into a Connection agreement with the holder of the transmission or distribution licence in respect of the power system over which the electricity is to be wheeled; or
3.1.2the generation Facility has a Point of Connection but does not export nor import any electricity onto or from the transmission or distribution power system.
3.2 The operation of a distribution Facility up to the Point of Connection that connects the generation Facility where there is conveyancing of electricity through the transmission or distribution power system.
3.3The operation of a generation Facility with or without energy storage for Demonstration purposes only, whether or not the Facility is connected to a transmission or distribution power system and where the Facility will be in operation for not more than 36 months.
3.4The continued operation of an existing generation Facility with or without energy storage which, immediately prior to the date of commencement of this Schedule, was exempt from the requirement to apply for an hold a licence under the Act, must register with the Regulator within six months of commencement of this Schedule subject to the generation Facility having complied with the Code and being connected to the transmission or distribution power system.
3.5The selling of electricity by a Reseller in circumstances where—
3.5.1 the price charged by the Reseller to customers does not exceed the tariff that would have been charged to such customers for the electricity if it had been purchased from the Distributor for the area in which the electricity is supplied to the customer; and
3.5.2 the Reseller has entered into either a service delivery agreement in accordance with the Municipal Systems Act, (where the licensed Distributor is a municipality) or a similar agreement with the Distributor (where the licensed Distributor is not a municipality) that regulates the relationship between the Reseller and the Distributor and the obligations of the Reseller in respect of the quality of supply to customers, and the Regulator has ratified the general terms and conditions of such service delivery agreement.
3.6Save for the licensing requirements, a registered generator shall comply with all applicable legislative and regulatory requirements necessary for the sustained operation of the national interconnected power system.

 

Revocation and deregistration

 

4. The Regulator may vary, suspend or remove any registration on receipt of an application by a registrant or on application by a third party or upon violation of the regulatory requirements to comply with the Code.

 

5. The Regulator may revoke a registration under the following circumstances:
5.1 On application by a registrant; or
5.2When the facility is no longer required.

 

6. A registrant must, in the circumstances contemplated in item 5.1 give the Regulator at least 6 months' notice in writing of his or her intention to cease activities, unless the Regulator determines otherwise.

 

[Schedule 2 substituted by Correction Notice No. 2935, GG47877, 17 January 2023]