Electricity Regulation Act, 2006 (Act No. 4 of 2006)RegulationsElectricity Transmission Infrastructure Regulations10. Cost recovery |
| (1) | The Regulator shall, when determining licence conditions relating to the setting or approval of prices, charges, rates and tariffs charged by licensees and when setting or approving a transmitter's tariffs, ensure that the buyer is able to recover, at least, the full amount of the costs incurred in the following categories: |
| (a) | the development and preparation costs incurred in relation to transmission capacity which is the subject of a determination; |
| (b) | annuity payments or other compensation paid by the buyer in respect of transmission capacity, as provided for in a transmission services agreement; |
| (c) | reimbursement to the transmission service provider for costs incurred for acquisition of servitudes and similar rights, if applicable; |
| (d) | any other payments made by the buyer in terms of a transmission services agreement, provided the buyer or user acted in accordance with its contractual rights and obligations; |
| (e) | the costs efficiently incurred in administering, managing and reporting on a transmission services agreement; |
| (f) | the costs arising from the termination of a transmission services agreement; and |
| (g) | other costs efficiently incurred for purposes of giving effect to a determination. |
| (2) | The buyer may request the Regulator to confirm the categories of costs which will be recoverable by the buyer, before entry into a transmission services agreement, and the Regulator must respond within 30 days. |
| (3) | The buyer must, upon request, provide the Regulator with such information as is reasonably required by the Regulator for purposes of finalising the cost recovery assurance letter. |