Monday, March 1, 2021

Electricity Proclamation No. 86/1997



WHEREAS, facilitation of conditions for the expansion of electricity services is essential to enhance the country’s economic and social development;

WHEREAS, the establishment of an autonomous, federal organ to regulate the activities of electricity suppliers and the prescription of provisions there of are requisites for the supply of efficient and reliable electricity services;
NOW, THERFORE, in accordance with Article 55(1) of the Constitution, it is hereby proclaimed as follows:


1.    Short Title
This Proclamation may be cited as the “Electricity Proclamation No. 86/1997.”

2.    Definitions
Unless the context otherwise requires, in this Proclamation:
1)    “charge” means the fee a customer is charged for the use of electricity services;
2)    “customer” means a person obtaining electricity services from the licensee;
3)    “distribution” means the supply of electricity services to customers through medium and low voltage lines;
4)    “electricity” means electric power generated from water, minerals, sunlight or other sources;
5)    “generation” means the production of electricity;
6)    “license” means a license issued pursuant to this Proclamation to generate, transmit, distribute and sell electricity for commercial puposes;
7)    “licensee” means a person issued with a license pursuant to this Proclamation;
8)    “Minister” and “Ministry” means the Minister and the Ministry of Mines and Energy, respectively;
9)    “person” means any natural or juridical person;
10)    “regulations” means regulations to be issued for the implementation of this Proclamation;
11)    “tariff” means the list of fixed charges approved by the Government for electricity services;
12)    “transmission” means the transportation of bulk electricity.

The Electricity Agency

3.    Establishment
1)    The Ethiopian Electricity Agency (hereinafter the Agency”) is hereby established as an autonomous federal agency having its own legal personality;
2)    The Agency shall be accountable to the Ministry.

4.    Head Office
The Head Office of the Agency shall be in Addis Ababa and it may have branch offices elsewhere as necessary.

5.    Objective
The objective of the Agency shall be to promote the development of efficient, reliable, high quality and economical electricity services.

6.    Powers and Duties of the Agency
The Agency shall have the powers and duties to:
1)    supervise and ensure that the generation, transmission, distribution and sale of electricity are carried out in accordance with this Proclamation as well as regulations and directives issued hereunder;
2)    determine the quality and standard of electricity services and ensure the implementation thereof;
3)    issue certificates of professional competence to electrical contractors;
4)    issue, suspend and revoke license for the generation, transmission, distribution and sale of electricity in accordance with this Proclamation as wellas regulations and directives issued hereunder;
5)    study and recommend a tariff and, upon approval, supervise the implementation thereof;
6)    collect license fees in accordance with rates to be prescribed by regulations;
7)    cooperate with training institutions in the field of technical development of electricity;
8)    own property, enter into contracts, sue and be sued in its own name;
9)    perform such other lawful activities as may be necessary for the attainment of its objective.

7.    Management of the Agency
1)    The Agency shall have a General Manger, to be appointed by the Government upon the recommendation of the Minister, and the necessary staff.
2)    The General Manager shall be the chief executive of the Agency and shall, subject to general guidance by the Ministry, direct and administer the activities of the Agency.
3)    Without limiting the generality of sub-Article (2) of this Article, the General Manger shall:
(a)    exercise the powers and duties of the Agency specified under Article 6 of this Proclamation;
(b)    employ and administer employees of the Agency in accordance with directives approved by the government in compliance with the basic principles of federal civil service laws;
(c)    prepare and submit to the Ministry the work programme and budget of the Agency and implement same upon approval;
(d)    effect expenditure in accordance with the budget approved for the Agency;
(e)    represent the Agency in all its dealings with third parties;
(f)    prepare and submit to the Ministry the activity and financial reports of the Agency.
4)    The General Manager may delegate part of his powers and duties to other officials and employees of the Agency to the extent necessary for the efficient performance of its activities; provided, however, that in the case of delegation to act on behalf of the General manager for more than thirty (30) days, prior approval by the Minister shall be required.

8.    Budget
1)    The budget of the Agency shall be drawn from the following sources:
(a)    budget allocated by the Government;
(b)    license fees; and
(c)    monies from other sources.
2)    The fund referred to in sub-Article (1) of this Article shall be deposited in an account opened in the name of the Agency and be expended for the carrying out of its activities, in accordance with federal financial administration laws.

9.    Books of Account
1)    The Agency shall keep complete and accurate books of account.
2)    The books of account and financial documents of the Agency shall be audited annually by the Auditor General or by auditors designated by him.

Requirement and Conditions of License

10.    Requirement of License
1)    No person may generate, transmit, distribute or sell electricity for commercial purposes unless he is a holder of a license.
2)    Any person desiring to generate, transmit or distribute electricity for non-commercial purposes shall notify the Agency, in advance, and produce documents evidencing that he has fulfilled environmental protection and sefty conditions as required by the Agency.
3)    Any person generating electricity by installing a standby generator may use the existing supply system of the area by entering into agreement with the concerned licensee.

11.    Eligibility for License
1)    Any person may be issued with a license where he satisfies the qualifying conditions specified in this Proclamation, regulations and directives issued hereunder as well as in the investment law and upon confirmation by the Agency that he is qualified to carry on trade under the Commercial code and has the financial resources, technical competence, professional skill and experience required to fulfill license obligations.
2)    Any person who has been engaged in the generation transmission, distribution and sale of electricity prior to the coming into force of this Proclamation shall be required to submit an application, along with the necessary particulars, and obtain a license.

12.    Transfer of License
A license issued pursuant to this Proclamation may be transferred to other person with the prior consent of the Agency, under conditions to be specified by regulations.

13.    Obligations of License
Any licensee shall:
1)    carry out the generation, transmission, distribution and sale of electricity in accordance with this proclamation, regulation and directives issued hereunder as well as in compliance with environmental protection laws and quality standards determined by the Agency;
2)    keep relevant records of operation, submit reports and supporting documents to the Agency in accordance with directives to be issued by the Minister;
3)    make books and records of operation available for inspection by duly authorized officials of the Agency.

14.    Suspension and Revocation of license
1)    The Agency may suspend or revoke a license where the licensee fails to comply with obligations specified in this Proclamation, regulations and directives issued hereunder as well as in the license.
2)    Prior to revocation of a license, the Agency shall allow the licensee such time as it deems sufficient to rectify failures.
3)    Without prejudice to the rights of heirs, the license shall be revoked upon death of the licensee or upon liquidation or declaration of bankruptcy under the relevant law, in the case of juridical person.

15.    Charges
No licensee may claim charges in excess of the tariff.

16.    Conditions for Interruption of Electricity Services by the Licensee
1)    The licensee may not interrupt electricity services except for the following reasons:
(a)    to inspect, repair, maintain, adjustor to undertake other necessary works related to electrical equipment or lines;
(b)    where natural calamities such as floods, landslides or earthquakes or other events beyond the control of the licensee occur;
(c)    Where customers fail to pay charges;
(d)    Where customers utilize unauthorized electricity, contrary to the terms and conditions agreed upon.
2)    The licensee shall notify the general public 24 hours in advance of interrupting electricity services as specified under sub-Article (1)(a) of this Article.

17.    National Grid
1)    The Government may, by notification, specify and transmission line having not less than 132kw as national grid.
2)    Access to such line by licensees shall be determined by regulations.

18.    Import or Export of Electricity
1)    Any licensee desiring to import electricity generated within Ethiopia shall have to obtain prior permission from the Agency.
2)    Any licensee desiring to export electricity generated within Ethiopia shall have to obtain prior permission from the Agency.
3)    Conditions for the import and export of electricity shall be determined by the Ministry, subject to recommendations made by the Agency.

19.    Inspection
An official duly authorized by the Agency may, at all reasonable times, enter premises and inspect and supervise the generation, transmission, distribution and sale of electricity without unreasonably impeding or obstructing activities thereof.

Use of Land for Electricity Supply Activities

20.    Use of Land
1)    A licensee may enter land or premises in the holding of any person and carry out activities required to connect, repair, upgrade, inspect or remove electrical lines.
2)    The licensee may have the right to cut and lop trees or to remove crops, plants and other things that obstruct the construction or operation of electrical works or may cause danger to electrical lines.
3)    Where the licensee desires to act under sub-Article (1) or (2) of this Article, he shall notify the holder of such land in advance thereof.

21.    Compensation
The licensee shall pay compensation, in accordance with relevant law, for damages caused to the property of a land holder while acting under Article 20 herein.

22.    Expropriation of Land
Where public interest so justifies, a licensee may be made the beneficiary of an expropriation measure, taken in accordance with the law, over private land holdings.

23.    Town Plans
1)    Any master plan of a town shall clearly demarcated and show the electrical supply-system layout thereof.
2)    Any licensee shall, while connecting electrical lines, comply with the master plan of the town.

24.    Other Constructions and Works
No construction, farming, plantation or any other activity of a permanent nature may be carried out within the clearance zone to be set, by regulations, adjacent to electric transmission stations or lines.

25.    Access to Existing Facilities
The licensee shall allow the use of his transmission line to other licensees where their request is without impediment to his undertakings and they pay the amount to be determined by the Agency.

26.    Use of Water for the Generation of Electricity
1)    The license may use water, free of charge, for generation of electricity.
2)    The Agency may, representing the concerned authority, issue eth required water use permit to the licensee in accordance with the Water Resources Utilization Proclamation No. 92/1994.

27.    Penalty
1)    Any person who causes harm to any electricity generation plant or transmission or distribution line shall be punished with rigorous imprisonment from 5 up to 15 years, unless punishable with more severe penalty in accordance with relevant provisions of the Penal Code.
2)    Any licensee who violates the provisions of this Proclamation or of regulations and directives issued hereunder shall be punished in accordance with the relevant provisions of the Penal Code.

28.    Power to Issue Regulations and Directives
1)    The Council of Ministers may issue regulations necessary for the implementation of this Proclamation.
2)    The Minister may issue directives necessary for the implementation of this Proclamation.

29.    Effective Date
This Proclamation shall enter into force as of the 7th day of July, 1997.
Done at Addis Ababa, this 7th day of July, 1997



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