Section 12 Electricity Act 2023

Section 12 of the Electricity Act 2023 is about Commission’s directive respecting competition transition charges. It is under Part III (Development of a Competitive National Electricity Market) of the Act.

(1) If the Commission determines that following its directive given under section 11 of this Act will result in decreasing electricity prices to such an extent that a trading licensee or a distribution licensee would have inadequate revenue to enable payment for its committed expenditure or is unable to earn committed rates of return on its assets, despite its efficient management, the Commission may issue further directives on the collection of a competition transition charges from eligible customers, the distribution of the funds collected to the trading licensees or distribution licensees licensed under this Act and the duration of the competition transition charges.

(2) Without prejudice to the terms of any electricity distribution franchise agreement entered into between a distribution franchisee and distribution licensee under any guidelines or regulations issued by the Commission, the Commission may, where the exit of an eligible customer from a franchised area may negatively affect return on investments made by the franchisee or render such a franchisee incapable of meeting its obligations under the electricity distribution franchise agreement cause payment to be made to the affected franchisees from the competition transition charges collected by the Commission under subsection (1).