REGULATORY & LICENSING
Economic Regulation
The economic regulatory function is based on three main sections of the National Energy Authority Act 2021. These functions are summarised below.
Standard Compliance
a) Aimed to ensure that there is an efficient tariff system based on industry best practice
b) Ensure that that there is standard guideline to formulate the power purchase agreement and the process of reference price approval.
c) Administration of fees, charges, levies, and other charges.
1. Tariff system
The economic regulation of the tariff system of the energy and electricity supply services, and downstream gas distribution is based on accessibility, consistency of supply and affordability of energy and electricity supply to consumers.
2. Power Purchase Agreement (PPA) from generation to transmission
The PPA is an agreement between the electricity producer and the transmission network owners. The PPA Applicants and/or licensees of either the power generations and transmission license to supply power segments may enter into a power purchase agreement to supply power.
Tariffs arranged under a power purchase agreement must;
- comply with the Act, tariff rules, regulations, codes, regulatory contracts, guidelines, arrangements and mechanisms.
- take into consideration the objectives of the NEA Act, in particular section 46, including the policy on reduction of tariff, to ensure that electricity is affordable for customers.
4. Administration of fees, levies, and other charges
NEA may, by written notice, require a person to pay an administration fee, levy or charge required under by this Act or any prescribed regulation within a time specified in the notice.
A person who contravenes section 58 is guilty of an offence.