‘The Malawi Gazette Supplement dated 19th August, 216, containing ‘ets “. 4C) ‘MALAWI GOVERNMENT (Papiihed 19tm August 2016) Act / No, 12 0f 2016 1 ssent Pro, ARTHUR PETER MUTHARIKA ‘PRESIDENT “1 Agus, 2016: ARRANGEMENT OF SECTIONS 1. Shor te 2. Amendnent of .2 of Cop 73:01 3, Amendnen of 3 of te principal Act 44. Amenden! of $4 of the principal Act 5, Amendnen of 5 of te principal Act 6 Amendnent of 12 ofthe principal Act 17. Amendnen of «16 of the principal Act 8 Amendnent of the heading of Part TV of the principal Act 9, Replacement of 19 of the principal Act 10. Replacement of 20 ofthe principal Act 11, Insertion of new 8.208 snd 20 B into te principal Act. 12, Ameadnem of 21 ofthe principal Act 13. Ammendinent of. 22 ofthe principal Act 14, Amendnent of. 24 ofthe principal Act 15, Amendneat of the heading of Pat V of the piscipal Act 16, Replacement of 27 of he principal Act 17, Replacement of. 29 ofthe mrincial Act 18 Amendnea! of .30 of the principal Act 19, Amendnent of 50 ofthe principal Act 20, Replacement of section 52 ofthe principal Act ‘An Actto amend the Electricity Act ENACTED jhe Parliament of Malawi as fllows—2 Electricity (Amendment) New Shoe This Act may be cio as the Blewcity (Amendment) Act, 2016 fmmines 2. Tho Electricity Act (herinafer efered to a the “prisipal Sree yoy ACE is mended in Section 2by— (c) senting, immediately air the defntion of the word “auc the following definitions — “average sling price” means the weighted average of he ‘rc paid bythe single Buyer ints contacts with genertor, Frport sd ey ober supply ebained by te single buyer and “tlk consumer” meats a consumer tat is allowed to buy lect dely from » generator” (8) iserig, immediately alr the definition of the words “penention station” tbe following defiitions— "Grid Code” means the set of rules made by the Authority {or eperation, dispatch and reporting ofthe Malawi leticty supey industry and “independent power producer" means a person that privately builds, owns and operas ficiites io generate and Fel elect othe Malavd eerity sippy inde" (e deleting the definition ofthe word “icensee” and sobs ing thor te following defition — licensee” means te holder of licence granted by the Autorty under this Act for the generation, tasmison, Astbation, imporation or exportation of electri em ad matket operator and single buyer of electricity" (4) élesing the definition ofthe words “Load Disptch Core™ and substuting therefor the following definition — “Load Dispatch Centre” means a business arc within the system and market operator which s sed for co-ordination of ‘Benet, tanamisnion and dstibuton of electri inthe fmersonested electri system"; : (@) inserting, immediately afer the defstion of the words “Loed Dispatch Centre”, the following definitions— “power purcace tgesment” means @ conte! between a _geagatr and a single buyer or between ingle buyer ad a Aisrbuor to buy clcticy fora preesablthed period of time: and ‘regulated consumer" means « consumer that must buy lacey fom a ditrbutersNo.2 (deleting the defiition of the words “rr lection” and substituting therefor the folowing defon-— ‘rua electrification” means grid or off-ri extension of Aisrivton lines and generation of elcetiely in rural tod ‘erm areas whose internal ate of reuris op o maximum ‘value sot bythe Authority, line voltage Iovel isles than 66 ‘loves and geaerationcapocity is upto $ mepawats" (2) inserting, inmetiaely ater the definition of the words “rural clectfcaon the following deritions— “single buye” means lisensce responsible for buying electricity from generators; and “syne and market operator” means a licensee respon {or operating the tanomision sytem andthe eleety mats ket of Malawi and () insoring, immediately afer be definition of the word “ansmiter, the following definition — ‘wheeling of power” means the transmission of power fom seller oa buyer using #rarsmishon sytem of one rd toa load ouside the grid boundary” 13. Section 3 ofthe principal Ast is amended — (a) by deleting subsection (1) and substbuting therefor, the following new subsection a subsection (1)— = (1) A person shall not cary on or be engaged in any city for the soply of clic, including the export of lect from, and impor of eect int, Mela, without 4 generation, Cannmssion, importation, expotton, aystem ‘nd marke opentio, single buyer or ditbution licsoes, 9 ‘he case may be, issued by the Author)": end (6) in subsection (2 by inserting te following new paragraphs aad “() system and market operation; and (6) buying electicty fom generators” 4. Seetion 4 ofthe principal Acti amended ty — (@) deleting subsecsons (1), @2) and (3) and subsiding therefr, the fling new subsesons ts subsections (1), (2) and @)— “() Save as provided fr in subsection 2), licensee sal ot be granted more thin one pe OF Hcenee listed in seedon 3 2). oct peopel Aclecricity (Amendment) Netz (2) A holder of a tansmisslon licence before coramencement of this Ac, shall bold simlsaously- licences for distbuton, imports, exports, system and ‘market opertr and single buyer (Q) A person may hold mere than one generation Nesnce and (©) by inserig, immediatly ater subsecton (8), the fllowing new subseton as subtecton (3}— “(S)A person that old licence for generation ‘may also hold leeace for exportation. fApininetet $. Section 5 of the prinspal Act is amended by deleting sate, subsections (1) and (2) and sabstiuing teeter he fllowing newt erm Subecet a sbeestions (1) nd @)— (0) petson required to hold Hcenee under this system and market operator single buyer, ‘portation or distbuton licence, 2 the (2) On commencement of this Ac, the Axthority stall issue cence for system end market ofertion and single buyer tothe cue bolder of tenenistion nd distribution leeaes (3) On commencement ofthis Act, he authorty shall Issue aienee forthe generation flies curently the country Anénersf 6, Seaton 12 of the principal Act is amended by inertng, SRoGe immediately after paragraph (), the following new paragraph 6 parsgraph (@}— *(e) in the case of system and market epertor and ‘single buyer meen five yeas” eee 7. Seton 6 ofthe principal Act inamended— —* nepal (@ in subsection (3) by — (i deleting paragraph (2) snd subetetngterefor the following new paragraph as paragraph (o}— (2) retuetion of technical and non-tesnicl losses" (it inserting immediately afer parsgrph 2), the following new pararap as parsgreph (€)—No.2 Electricity (Amendment) “ey any oer perfomance incca- tor a2 deemed ‘necessary by the ‘Autoriy® end (ii) deleting the words “the benchmarks of which shall be preserbed by notice in the Gazette” Immediately afer paragraph (2) (jy by doesing subsections (4), (5) ad (6); and (o)by insering immediately afer subsection (3), the following new subsections as subsections (4, (5) (6), Oe) md) i (4) The Authority shall determine the components ofthe base tif fom fine to time, by ‘otc published in the Gazene, (5) The Authority shal, every four years, revise the bse tari end review the tail adjustment formule fefered to in subsection 2) fr al licensees, withthe ‘xcepion of generation licensees, (6)Attbe ead of four years and before the Authority spproves the new base laff or new tariff adjustment fermala for the next period, the base tari and respective tai adjustment forma ball remain in free. (7 The generation component ofthe base tiff shall be adjusted based on the respective power purchase sgreements, and informed by the single buyer to the ‘Rathonty. (Every licenses, withthe exception ofa generation licenses, shall publish the approved tariff or soy fevision thereof ine manger prescribed by the ‘Raton. (9), singlo buyer shall publish the wif agreed in each power purchase agreement, aswell the resulting verge sellag rics" Part IV of th pracipal Act is amended by— (4) deleting the beating of Par IV and replacing it with he {allowing heading “TRANSMISSION, DISTRIBUTION, SYSTEM AND MARKET OPERATOR AND SINGLE BUYER LICENSEE"; and (}) eleting. the words [This Part is not in force” immediatly afer the heading.: ect moines) 1 ere FESR wthuenifagae ee Seen aner i fie Auta ine wusisin Zero io) De eee Rt apne nese te oes Cait seek =e pty sal oe ton inion eee a ice Se pas ee agent ue oe ae ree Se eminem pn on QOr Sema hey ay 2 srr eit Ne en Semin Neo © Lge ons =o me em tr of esa pa ee el ean lees sity Sena nn ener th Seon of te peal At enned by tiog Sera pararaps () (6, () (nd () and sbstving eer he a re eee vmaa ‘pecans 20-—(1) The dies and functions ofthe treosmis- Berets on license shal be t0- 2 egercl+ (bil opsrte nd msnain he ranemison Sem gehvork in Mal (by nderake transmission plang in collbora- don with he single Buyer Fceases, (6 provide information for the Single buyer ticensots planning activites: (4) coordinate the operation ofthe ranamission sysoon arith the aystem and market operator Tenses, (comply. wit te operation procedures and celeia caublished ithe markt rules and Grid ‘Code forthe rllable and economic operation ofthe transmission system; and {f coordinate te importation and expocation of etry as isrcted bythe sre buyer eenseElectricity (Amendment) @) The duties aad functions of the distibution lice sal be o— {@) plan, build, operate and mantin the Asebe- tin network 0 Mila; (©) supply leery 1 consines, (6) take meter readings, prepare and deliver motes and collec psymeat rom consumer; (@ provide information to the single buyer lense for panning and freee purposes; (©) coordinate the operation of the disubation system. with the system and mavket operator Teenie: (f) foresae the eletcty consumption in each ade or ane supplied by th licensee at everytime Segment ofthe dy; and () provide information tothe system and market pests lceasee for the dily generation dispatch” 11._The principal Act is amended immediately wer soaion 20, by inserting the following new sections us sections 20A and 208 — “Duiant 204. (1) The duties and functions ofthe sysem and eet market operator licensee shal be, 10— = (a) guaranco to all gencrtion plans 2 fir em gapateh and. non-diseriminatory abcess 10 the trabsission sytem, () own, ranage aod operate the Load Dispatch cate in § non-dicrminsory manner aed atleast ‘vt in the interconnected sysem: (6) plan and conta the daily operation of the integrated and ileronnested system: (A) diate gnertin in ine with markt rules tad the Grid Cove; (e) optimize the aie of reservoir, tdkng ino considention other Water usages and caviraanental consti () supervise end coordinate the real time cperton of the market, (@) meter sod sete trantactions Sotween Feonsees, (dh determine the actual power of generation units cf the interconnected system, EenSito Slecrcy (Amendment) Not? (i) determine the valued balance of tbe movement elearning om the integrated operation hth sytem; () provide accurte information to licensees and companies intersted to svest inthe sector, (@) manage imports snd expors arising ftom the peation ofthe Souther Aen Power Po!’ Day ‘Shea electric marker, (D represent Mai inthe Souther Affica Power oo (i) submit periodic reports to the Authority in spel of cet he fn oh et: (i) pecform such other duties inden to and omected wih the obortive ofthe Load Dispatch Cente (2) For the purposes of subsection (1), “Southern ‘Abies Power Pool” meant a cooperation of the ‘nalonal electricity companies in Souther AG dat five ercaed 8 ommon power grid between their ‘aunties and ecommon mare! fr electricity. 200, The dates and fonctions ofthe single buyer coe sal be (@ prepares long term forecast of demand king inl ington te a of ey sy overage and. expected economic growlh ip onslaion with the Minis, {@) andere least cos long-term generation and ‘manson expan plat, (e) prepare a ranking of generation projets tobe cae bu te eprva ofthe Minter: (propre aang of ransmission projects tobe butt coninaton nity he trasmisson license, ‘vith he approval ofthe Minis, (©) ergmiza sith the approval of th Miniter, ope ter fo independent power produces that SES Sony ih poe ied bye sory (f evalune sliced propotls fom independ ‘ext pore produers and recommend ote Minter for apron:Now lecrcty (Amendment) 9 a ee peepee payer seat east eee ees () conclude power purchase agreements with oa (Dee ee red i etontemeppeeet eer miata open ease 2 seieiismecothememanaw | amie (oon som inte ec” wives y SE credence jaia es menep amen as Macnee ye mace nd (aay fs Bvag ey aie = "Ups poral ie Arye bk couener my ven ae Ona bon ees 1B, Set ofp ae men btn eft at cee aay cemetyeaen Yoram pee os GEE oy eee a oboe tess ar Slee zt fa ncn Aes enki) wy Muy ge amie te oroe poe “Pend ba inc tiny of inal vty Saige eet 1S, Pat V ofthe principal Act is amended by — ogni (@) delesing its heading and replacing it with the following. heading ot heading “SYSTEM OPERATION" and Reve (@ dletg the words [This Pati ot in force)” mmedit- iy ater esding 16, Sib 27 of eprispal Acts epeledand replaced with See the Flowing new secon “Aeptenan _ 2T—(1) The Load Dispatch Cen ssl peta Sims” cally ihe ceoncnical dopuch of geneeion, Bert” cordance withthe matket ules and the Gnd Code. (2) very generator stall comply with te inc {ons ofthe Laed Ditch Cee ad sal ifr tc {id Dispatch Cena daily of saab10 lectin (Amendment) oz eguemetel 17. Section29 of the principal Acts reened and ele Rete with he following new secton— nonin 29. Atzanamision end dsvibuton liens shall BEES eee etna rose Gi ae ey pertemt 18. Seton 30 ofthe principal Act is amended by deleting the ‘Sethe’ words ransnisin licensee" andreplacing therefor withthe words Sagle buyer” sommes 19. Seton SO of the pica Acts amended by (2) deleting the marginal note and substuting therefor the folowing marginal note “Disrbaion lenses may dscontinoe supply for non-payment, and (b) deleting the word “customer” in paragraphs (6) and (c) of. sibsecon (I) end in paragraph (a) of subsection (2), end ‘batting thf th word "consaner™ pect 20. Seton 2 of th princi Ati pele ed roped setae with he loving new scton — peeynie_ Sh) Th Autry my he bo, us ere der and gielins og effect os Act ot for fs ici Sener admmnisraton. (2) The by-laws, rues, codes and guidelines to be promulgated bythe Autocity under sbsection (1) for ‘stbulion Hicenses shall apply to rua lettin schemes” ‘Passi in Psiment this twenty fst day of June, two thousand and Flows, Katswaa (ler of Parliament