Malawi
Electricity Act
Chapter 73:01
- Commenced on 28 December 2007
- [This is the version of this document at 31 December 2017.]
- [Note: This version of the Act was revised and consolidated in the Fifth Revised Edition of the Laws of Malawi (L.R.O. 1/2018), by the Solicitor General and Secretary for Justice under the authority of the Revision of the Laws Act.]
Part I – Preliminary
1. Short title
This Act may be cited as the Electricity Act.2. Interpretation
In this Act unless the context otherwise requires—“Authority” means the Malaŵi Energy Regulatory Authority established under section 3 of the Energy Regulation Act.[Cap. 73:02]“average selling price” means the weighted average of the price paid by the single buyer in its contracts with generators, imports and any other supply obtained by the single buyer;[12 of 2016]“bulk consumer” means a consumer that is allowed to buy electricity directly from a generator;[12 of 2016]“case of emergency” with reference to a right of entry on or to land or premises conferred under this Act, means a case in which the person requiring entry to the land or premises in question has reasonable cause to believe that circumstances exist which are likely to endanger life or property, and that immediate entry to such land or premises is necessary to verify the existence of the circumstances or to ascertain the cause or to effect a remedy;“customer” means a person purchasing electricity;“consumer” means a person using electricity;“contract of supply” means a contract between the operator of an electricity undertaking and any other person for the supply of electricity to that person;“distribution” means the conveyance of electricity at less than 66,000 volts, or as may be prescribed by notice in the Gazette, from the transmission grid to customers through a distribution power system, and the terms “distribute” and “distributing” have corresponding meanings;“distributor” means a person distributing electricity;“distribution line” means any cable underground or overhead line for the distribution or reticulation of electricity from an electricity undertaking to a customer, together with any transformers, switchgear or other works necessary to, and used in connexion with, such cable underground or overhead line, and the buildings or such part thereof as may be required to accommodate transformers, switchgear and other works;“electricity” means electric energy generated from hydro, thermal, coal, diesel, oil, biomass, gas, photovoltaic, wind, nuclear and any other source as defined in Energy Laws;“electricity undertaking” means any installation works or services for the commercial generation, transmission, wheeling, distribution or supply of electricity which is owned or operated by a licensee, and ‘electricity undertaker’ bears a corresponding meaning;“energy laws” has the meaning ascribed thereto in the Energy Regulation Act;[Cap. 73:02]“generation” means the production of electricity for sale, and the terms ‘generate’ and ‘generating’ have corresponding meanings;“generator” means a person generating electricity;“generation station” means any station for generating electricity, including any building, plant and machinery used for the purpose and all accessories necessarily incidental thereto, together with the site thereof, and any site intended to be used for such a station;“Grid Code” means the set of rules made by the Authority for operation, dispatch and reporting of the Malaŵi electricity supply industry;[12 of 2016]“independent power producer” means a person that privately builds, owns and operates facilities to generate and sell electricity to the Malaŵi electricity supply industry;[12 of 2016]“interconnected system” means all high voltage electricity lines of 66,000 volts and above, or as may be prescribed by notice in the Gazette, including the related substations and associated equipment and generation stations to which they are connected and any distribution system connected thereto;“licensee” means the holder of a licence granted by the Authority under this Act for the generation, transmission, distribution, importation or exportation of electricity, system and market operator and single buyer of electricity;[12 of 2016]“Load Dispatch Centre” means a business area within the system and market operator which is used for coordination of generation, transmission and distribution of electricity in the interconnected electricity system;[12 of 2016]“power purchase agreement” means a contract between a generator and a single buyer or between a single buyer and a distributor to buy electricity for a pre-established period of time;[12 of 2016]“regulated consumer” means a consumer that must buy electricity from a distributor;[12 of 2016]“rural electrification” means grid or off-grid extension of distribution lines and generation of electricity in rural and remote areas whose internal rate of return is up to a maximum value set by the Authority, line voltage level is less than 66 kilovolts and generation capacity is up to 5 megawatts;[12 of 2016]“single buyer” means a licensee responsible for buying electricity from generators;[12 of 2016]“supply” means the sale of electricity to customers;“supplier” means a person supplying electricity;“system and market operator” means a licensee responsible for operating the transmission system and the electricity market of Malaŵi;[12 of 2016]“transmission” means the conveyance of electricity at 66,000 volts or more, or as may be prescribed by notice published in the Gazette, from generators or import points to distributors or large customers or export point through a transmission power system, and the terms “transmit” and “transmitting” have corresponding meanings;“transmitter” means a person transmitting electricity;[12 of 2016]“wheeling of power” means the transmission of power from a seller to a buyer using a transmission system of one grid to a load outside the grid boundary.[12 of 2016]Part II – Licences
3. Electricity supply activities to be carried on under licence
4. Licensees to hold only one type of licence
5. Application for licences
6. Mode and procedure of application for licence
7. Criteria for consideration of application for licence
8. Incomplete premises
9. Conditions of a licence
10. Amendment or revocation of licences
11. Breach of conditions of licence
If a licensee fails to comply with his licence, the conditions on which it was granted or the provisions of this Act or the Energy Regulation Act, or modifies the purpose for which the licence was granted, or fails to commence or complete any works required in his licence, the Authority may serve him or her a notice in writing requiring him to comply within such reasonable period as the Authority may determine, and where the licensee fails to comply, the Authority may—12. Duration and renewal of licences
13. Transfer of licence
14. Rural electrification licensees
The Authority may, by notice published in the Gazette, prescribe special and less onerous licensing regulations in respect of applications for rural electrification.15. Register of licences
The Authority shall keep and maintain a public register of licences issued, including the following information—Part III – Tariffs
16. Licensees to charge only approved tariffs
17. Public hearing before tariff revision
18. Criteria for granting or revising tariffs
Part IV – Transmission, distribution, system and market operator and single buyer licensee
19. Transmission licence
20. Duties and functions of a transmission licensee and a distribution licensee
20A. Duties and functions of system and market operation licensee
20B. Duties and functions of single buyer licensee
The duties and functions of the single buyer licensee shall be to—21. Power sales and purchase contracts
22. Import and export of power
23. Wheeling of power
The wheeling of power through the Malaŵi transmission system shall be in accordance with the principles of the Southern Africa Power Pool.24. Third party access
25. Load Dispatch Centre
A transmission licensee shall own, manage and operate the Load Dispatch Centre which shall be responsible for coordination of generation, transmission, load dispatch and distribution in a non-discriminatory manner and at least cost in the interconnected system.26. Functions and reports of the Load Dispatch Centre
Part V – System operation
27. Requirements of the Load Dispatch Centre
28. Transmission or distribution licensee not to own a generation station
No transmission licensee or distribution licensee shall be licensed to build, own or operate and maintain a generation station for sale of power whether for firm or standby purpose.29. Transmission or distribution licensee to conduct operations in accordance with Grid Code
A transmission and distribution licensee shall conduct its operations in accordance with the Grid Code.[12 of 2016]30. Generators to sell power to single buyer
All generators shall sign power sale agreements with the single buyer for sale of their power at a price to be agreed between the parties but approved by the Authority.[12 of 2016]Part VI – Distribution
31. Duties of distributor
Subject to the terms and conditions of a licence issued in accordance with this Act and the Energy Regulation Act, every distributor shall supply electricity to every consumer who is in a position to make satisfactory arrangements for payment under a contract of supply with that operator.[Cap. 73:02]32. Delays in supply
Where a distributor unduly refuses to supply any applicant with electricity, the applicant may appeal to the Authority, which shall determine the conditions under which the distributor shall undertake such supply.33. Standby supply
A consumer shall not be entitled to a standby supply of electricity from the distributor in respect of any premises unless that consumer has agreed to pay and has given security to pay, such minimum annual sum as shall give to the distributor a reasonable return (which return shall be determined by the Authority) on any capital expenditure and any other standing charges which may be incurred in meeting the maximum demand for the premises.34. Customers’ installation testing
A distributor shall test any installation of an applicant before a supply of electricity:Provided that the testing of such installation shall not render the operator liable in law for any damages or injury flowing from defective installations of applicants.35. Interference with licensee’s system
A customer shall ensure that the operations of his or her system does not interfere with the smooth and safe operation of the licensee’s system to which he or she is connected.Part VII – Inspection, accidents, inquiries and investigations
36. Entry and inspection of premises
The Authority, or any person authorized by it in writing, may at all reasonable times enter any premises or any licensed activity for the purpose of ascertaining whether or not the provisions, of this Act or the Energy Regulation Act, or the conditions of any licence are being complied with, or for the purpose of any inspection which is incidental to or connected with the carrying out of the duties of the licensee.[Cap. 73:02]37. Licensee to report accidents
38. Inquiries and investigations
Part VIII – Rights over land
39. Wayleaves over land
40. Right of entry on land
41. Trees or buildings interfering with electricity supply and equipment
42. Breaking up of streets
43. Licensees’ equipment not part of the land
Any lines, meters, fittings, works or apparatus belonging to a licensee and lawfully placed or installed in or upon any premises not in his possession shall, whether or not fixed to any part of such premises, remain the property of and may be removed by the licensee, and are not liable to be taken in execution under any process of law or any proceedings in insolvency or liquidation against the owner or occupier of such premises.44. Compensation for damage caused by licensee
Part IX – Offences and penalties
45. Offences
46. Penalties
Any person who is guilty of an offence under this Act shall be liable to a fine of K5,000,000 and to imprisonment for ten years.Part X – Miscellaneous provision
47. Consumer and customer education brochure
The Authority shall develop and publish an information brochure and other modes of communication for consumer and customer education on the structure and price regulation or on technical, safety and legal aspects of the electricity supply industry.48. Resolution of disputes by the Authority
49. Service of notice
Any notice or other document required or authorized to be given, delivered or served under this Act may be given, delivered or served—50. Distribution licensee may discontinue supply for non-payment, etc.
51. Right of appeal to the High Court
52. By-laws, rules, codes and guidelines
53. Repeal and savings
History of this document
31 December 2017 this version
Consolidation
28 December 2007
Commenced
Subsidiary legislation
Title | Numbered title |
---|---|
Electricity (Amendment) By-laws, 2018 | Government Notice 91 of 2018 |
Electricity (Amendment) By-laws, 2021 | Government Notice 22 of 2021 |