s.9Powers and functions of Office
9
Section 9Part 2 — Powers and Functions of Office

Powers and functions of Office

←→ Navigate  ·  Click subsection badges to collapse  ·  Press ? for help

Subject to this Law, the Office has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.
Without prejudice to subsection (1), the principal functions of the Office shall include —
to monitor and regulate the tariffs, rate structures and terms and conditions for electricity transmission and distribution charged to consumers by T&D licensees in accordance with the respective RCAM;
to review and approve other rates offered by T&D licensees outside of the respective RCAM and available at the option of the consumer;
to monitor and regulate the rate, price, terms and conditions of electricity generated by Generators and supplied to T&D licensees for reward;
to establish and enforce regulations, processes and licence standards regarding the granting of licences;
to grant, modify or renew licences for generation —
for additional electricity generation in the context of the generation solicitation process;
where the Office is satisfied that it is economic to extend the life of the generating unit or units of a Generator held under an existing generation licence;
from alternative or renewable sources of energy; or
under section 26(4);
to solicit additional generation capacity and conduct the generation solicitation process;
to grant, modify or renew a T&D licence to provide a T&D system in each of the Islands;
subject to section 27, to conduct the tender process for applicants for any new T&D licence to provide a T&D system, and to select the successful tender;
to monitor and regulate the divestiture of T&D assets when required by this Law;
to monitor and regulate the divestiture of generation assets when required by this Law;
to review and approve rates for backup electricity supply and for interconnection charged by a T&D licensee to another person in accordance with this Law;
to review and approve any PPA;
to review and approve adjustments to rates charged for street lighting, based on cost justifications prepared by a T&D licensee and submitted from time to time;
to review and approve the charges associated with generation that are passed through to the consumer by a T&D licensee;
to monitor and regulate all licensees in a manner that —
promotes sustainable competitive practices;
provides an opportunity for a fair and reasonable return to licensees; and
protects the economic interests and well being of consumers by keeping tariffs and rate structures as low as can reasonably be achieved;
to review and approve annually the Capital Investment Plans for all licensees; and
to authorise a T&D licensee to purchase renewable or alternative forms of energy from consumers who generate electricity for self-supply subject to the requirements of the Electricity Law (2008 Revision) and regulations made thereunder.
The Office shall also —
upon receipt of any direction given by the Cabinet under section 11, develop and implement such processes and arrangements, as may be necessary or desirable to give effect to such directions;
engage in a public consultation process on the procedures to be adopted by the Office to implement the processes and arrangements developed under paragraph (a);
advise the Cabinet on the effect of electricity generation or transmission and distribution upon the environment, having regard to sustainability and international agreements on the environment to which the Islands are or may become a party;
formulate, publish and implement such rules as the Office may consider necessary after the public consultation process referred to in paragraph (b), taking account of matters raised in the public consultation process; and
advise the Cabinet on the development and regulation of the electricity industry in the Islands and on the exercise of the functions of the Cabinet under this Law.
The Office shall carry out the functions and exercise the powers conferred upon it under this Law in a manner which —
is reasonable;
does not discriminate unfairly between applicants for licences or licensees;
protects the interests of consumers;
protects the security and public interests of the Islands; and
is consistent with the General Regulatory Principles.
In carrying out the functions and duties imposed and exercising the powers conferred by this Law, the Office shall have regard to —
the need to develop and promote sustainable competition for additional electricity generation in accordance with this Law;
the need to regulate and supervise licensees in such a manner as to ensure that all reasonable demands by consumers for electricity are satisfied;
the need to ensure that applicants and licensees are capable of financing the activities they are, or seek to be, licensed to undertake;
whether licensees have promoted or will promote safety, sound environmental practices, technical proficiency and efficiency in the generation, transmission and distribution of electricity;
whether licensees have ensured or will ensure the continuity, security and quality of supplies of electricity within the Islands;
whether licensees have promoted or will promote the development and use of renewable or alternative forms of energy by licensees and consumers;
whether licensees have promoted or will promote the efficient consumption and use of electricity by consumers;
the needs of rural customers, the disadvantaged and the elderly; and
the need to permit and promote the use of renewable or alternative forms of energy by consumers so as to reduce the load on any T&D system.
Without prejudice to subsection (5), the Office shall have the power to establish environmental standards and to ensure that licensees —
comply with planning standards; and
take effective measures to comply with safety and environmental standards.

Defined Terms

T&D licenseesRCAMGeneratorsGeneral Regulatory PrinciplesPPAOfficeIslands

Cross References

Referenced By