Professional Documents
Culture Documents
Water Policy (2007)
Public Utilities Regulatory Commission Act, 2016 (Act No. 20 of 2016), as
amended by the Public Utilities Regulatory Commission (Amendment) Act,
2017 (Act No. 31 of 2017)
Commission established as a body corporate, o Carry out any other function that may be
with three or five Commissioners representing assigned to it under any enactment
the Minister, general public and consumer regulating the sector in which any public
interests (S4). Tenure of Commissioners no utility subject to this Act operates.
more than three years (S5).
Commission shall set and periodically review
Commission may retain experts (S12), and tariffs that a public utility to which this Act
appoint committees (S13) to carry out its work. applies may charge for services that it provides,
in accordance with every enactment regulating
Commission funded by annual assessment
the public utility (S18 (1)). In addition to the
imposed by Commission upon every public
specific rates, the Commission may set and
utility subject to the Act – not exceeding 2% of
modify (S18 (2)):
gross revenue derived from the services of the
public utility (S14). o Consumers classes.
Commission to report monthly to the Minister o Charges and components of the tariffs.
(S16), and to be audited annually by Director of
o The tariff period during which the tariff
Audit, to be laid before House of
approved shall be in force.
Representatives (S15).
o Mechanisms to annually or periodically
Functions of the Commission (S17):
adjust the tariff approved by the
o Set, initiate and conduct reviews of tariffs Commission.
charged by public utility.
o Any other matter related with the
o Determine complaints made by consumers calculation, adjustment and application of
against public utilities to which this Act tariffs.
applies.
Commission shall establish a procedure for
o Hear and resolve any dispute that may arise review of tariffs and shall ensure compliance
between parties governed by an enactment with requirements prescribed in enactments
regulating the supply of services by a public related to tariffs (S18 (3)).
utility.
Commission may initiate an exceptional review
o Provide advice to any other Minister with of the tariffs in force on its own motion, or if
responsibility for the sector of a public utility (S19):
subject to this Act.
o Due to an event of force majeure or
o Enforce the terms and conditions of any exceptional circumstance, or a substantial
licence granted or issued pursuant to any modification of the obligations of a public
enactment under which the Commission has utility, the applicable tariffs do not comply
been conferred regulatory functions and with the principles and requirements of the
powers. Act.
Page 1 of 2
T.P. Smith, November 2018. Summary of PURC legislation
o Requested by a public utility (the o The quality and reliability of the service
Commission may accept or dismiss the provided by the public utility.
request).
o Need for the public utility to receive a fair
o If requested by the Minister. return upon the fair value of its property.
Commission shall have powers as are vested in o Need for public utility rates to be fair and
the High Court to enforce attendance of reasonable and in accordance with the law.
witnesses, examine them on oath, to compel
The Act repeals the Public Utilities Commission
production of documents and to enforce its
Act No. 13 of 1994.
orders (S27).
Public Utilities Regulatory Commission Act came
The proceedings of the Commission shall be
into force 01 August 2016, with the issuing of
open to the public (S30).
the Public Utilities Regulatory Commission Act
Commission shall foster transparency while (Commencement) Order No. 41 of 2016.
exerting its powers, and shall state the reasons
for its decisions (S31A).
The Act establishes a Public Utilities Appeals
Tribunal. An appeal from a decision of the
Commission lies with the Appeals Tribunal
(S32).
Commission may establish an office for
technical assistance to the Minister under any
enactment governing a public utility which
provides for the Commission to advise etc. or
assist the Minister in carrying out the
performance of functions under the enactment
(S36).
Penalties, on conviction: $10,000 (S40, 41);
$100,000 (S42(1)); $25,000 and/or 12 months
imprisonment (S42(2)); $25,000 (S43).
Regulations made by the Minister setting out
the principles on which rates chargeable by
public utilities should be based, shall have
regard to the following matters:
o Capital employed, operating expenses,
depreciation, taxes and other duties, and
returns on rate base.
o The requirement that the public utility
provide an up‐to‐date and cost effective
service to the public and that it keeps
abreast of technological and other advances
in its particular industry.
Page 2 of 2
T.P. Smith, November 2018. Summary of PURC legislation