Electricity Regulation Act, 2006 (Act No. 4 of 2006)RegulationsElectricity Transmission Infrastructure Regulations9. Transmission services agreements |
| (1) | Before a buyer enters into a transmission services agreement, the procurer must ensure that the transmission services agreement— |
| (a) | represents value for money, in that it results in a net benefit to the buyer and user or to the Government, having regard to cost, quality, quantity, risk transfer, social and economic benefit, or a combination thereof; |
| (b) | transfers appropriate technical, operational and financial risks to the transmission service provider; |
| (c) | contains effective mechanisms for the implementation, management, enforcement and monitoring of the transmission services agreement; and |
| (d) | permits adequate due diligence by the buyer or user, as the case may be, in respect of the transmission service provider's competence and capacity to meet its obligations in terms of the transmission services agreement. |
| (2) | A buyer must cooperate in good faith with the procurer and any transmission service provider to ensure that the respective rights and obligations of the buyer, the user, where applicable, and a transmission service provider are comprehensively provided for in the transmission services agreement in a manner which maximises coordination and efficacy in the national interest. |
| (3) | For purposes of subregulation (2), the buyer or user must provide the procurer and transmission service provider with such information, and access to the transmission power system, as necessary. |