Section 73: Penalty.

SCHEDULES Schedule 1: Application form for basic mini-grid licence Schedule 2: Application form for full mini-grid licence Schedule 3: Application form for full mini-grid licence (multiple project sites) Schedule 4: Modification form for basic or full mini-grid licence Schedule 5: Application form for transfer of full mini-grid licence Schedule 6: Application form for renewal of basic mini-grid licence Schedule 7: Application form for renewal or extension of full mini-grid licence Schedule 8: Tariff approval application form Schedule 9: Technical reporting template Schedule 10: Quality of service framework Schedule 11: Health and safety guidelines (incl. environmental protection) Schedule 12: Asset handover and compensation confirmation form Schedule 13: Complaints procedure guidelines Schedule 14: Dispute resolution mechanism iii 2 3 "basic mini-grid licence" means a licence issued by the Commission comprising a licence for generation and a licence for sale of electricity via a mini-grid of up to and including 100 kW of distributed power in aggregate; "basic mini-grid licensee" means any entity which holds a basic mini-grid licence issued by the Commission under these Regulations; "contracting authority" means a Sierra Leonean ministry, local council, public agency, authority or entity, which has legal capacity to enter into contractual obligations; "Commission" means the Sierra Leone Electricity and Water Regulatory Commission established by the Act; "consumer" means a person who purchases, receives or makes use of any service provided by a mini-grid licensee and does not deliver or resell the service to others; "consumer service agreement" means an agreement between the mini-grid licensee and consumers on terms and conditions for electricity supply; "distribution code" means the code and guidelines for the Sierra Leone electricity distribution system, as approved from time to time by the Commission; "distribution network" means any connection of cables, service lines and overhead lines, electrical apparatus or equipment built in compliance with the distribution code, and having design voltage of 33kW and below used to transport electric power; "distributed power" means the active electric power fed into a distribution network on average within any 15 minutes time interval of its operation period; "fee" means any fee payable by a mini-grid developer or a licensee to the Commission, as set by the Commission from time to time; "full mini-grid licence" means a licence issued by the Commission, comprising a licence for generation, a licence for distribution and a licence for sale of electricity through a mini-grid for mini-grids of above 100kW and up to and including 1 MW of distributed power per site and not exceeding 10 MW in aggregate, comprising a distribution network which is built in compliance with the distribution code and metering devices as approved by the Commission; "full mini-grid licensee" means any entity which holds a fullmini-grid licence issued by the Commission under these Regulations; "generation" means the production of electricity to be fed into a distribution network or supplied to the consumer directly; "interconnected mini-grid" means a mini-grid which is connected to one of the main-grid utility's networks; "interconnected mini-grid contract" means the contract between a full mini-grid licensee or a mini-grid developer, and a main-grid utility for the operation of an interconnected mini-grid, approved by the 4 5 "isolated mini-grid" means a mini-grid which is not connected to any of the main-grid utility's network; "licence" means any licence granted by the Commission under the Act and these Regulations; "main-grid utility" means the electricity utilities as established by the National Electricity Act, 2011 or any other electricity transmission or distribution licensee; "Minister" means the Minister responsible for electricity and "Ministry" shall be construed accordingly; "mini-grid" means any electricity supply system that comprises a power generation unit and a local distribution network, which may be compliant or noncompliant with the distribution code, supplying electricity to more than one consumer and which can operate in isolation from a main grid utility's network; "mini-grid developer" means any entity which is legally established under Sierra Leone law, and which submits an application for a basic or full mini-grid licence with the Commission; "mini-grid licensee" means any entity which holds a basic or a full mini-grid licence issued by the Commission under these Regulations; "person" includes an individual, a company, partnership or any association of individuals, whether incorporated or not; "System Average Interruption Duration Index" means the System Average Interruption Duration Index that measures the average number of minutes that an average consumer is without power over the defined time period, typically a year, defined as total minutes of consumer interruption divided by the total number of consumers served; "System Average Interruption Frequency Index" means the System Average Interruption Frequency Index that measures the average number of power outages that an average consumer experiences in a year, defined as total number of consumer interruptions divided by the total number of consumers served; "tariff" means the rate that is to be charged to the power consumers per unit of electricity supplied by a mini-grid licensee in accordance with the relevant laws and these Regulations; "terms and conditions" mean those terms and conditions contained in licences with which the licensee must comply; "underserved area" means an area served by a maingrid utility's distribution network with poor or insufficient reliability; "unserved area" means an area not served by any main-grid utility's distribution network, and otherwise called off-grid. 6 7 2. (1) These Regulations shall apply to mini-grids, the licensees,developers, operators and users of the mini-grids as well as all other private or public stakeholders including main-grid utilities or anyinstitution or agency that interacts with mini-grid developers, basic or full mini-gridlicensees and or mini-grid consumers in Sierra Leone. (2) A mini-grid may be any one of the following - (a) isolated mini-grid; (b) interconnected mini-grid. (3) A mini-grid shall have a generation facility in its network which may be operated by the mini-grid licensee or a third party. (4) A Mini-grid commissioned before the coming into force of these Regulations that is not in compliance with subregulation (2) shall cease to operate at the expiration of 12 months after the coming into force of these Regulations unless it becomes compliant with these Regulations. (5) These Regulations shall not apply to solar home systems or to generators supplying single or multiple water pumps with electricity. PART II -LICENSING 3. (1) The Commission may on application by a mini-grid developer grant- (a) a basic mini-grid licence which authorises the licensee to construct, install and operate isolated mini-grids with a distributed power of up to 100 kW in aggregate, comprising - (i) a generation licence which authorises the licensee to produce electricity; (ii) a sales licence which authorises the licensee to sell electricity to consumers in a designated unserved area stated in the licence. (b) a full mini-grid licence which authorises the licensee to construct, install and operate isolated mini-grids, comprising - (i) a generation licence which authorises the licensee to produce electricity; (ii) a distribution licence which authorises the licensee to distribute electricity directly or indirectly to consumers within a designated unserved or underserved area stated in the licence; (iii) a sales licence which authorises the licensee to sell electricity to consumers in a designated unserved area stated in the licence. (2) The Commission may on application of a mini-grid developer or a full mini-grid licensee approve an interconnected minigrid contract signed with a main-grid utility to construct, install and operate an interconnected mini-grid in an underserved area. 4. The decision of the Commission on the term of a licence issued to a mini-grid developer shall be guided by the technology and standards being employed and is specified in the terms and conditions of the respective licence. 5. (1) The Commission may on application of a mini-grid developer grant a licence to operate mini-grids. Application. Types of mini-grid licences. Term of Grant of licence, scope and authorised area. 8 9 (2) A licence granted by the Commission under subregulation (1) shall restrict the licensee to generate, distribute and sell electricity in the authorised area as defined in its licence. 6. (1) The fees applicable under these Regulations shall be as follows- (a) licence application fees payable with the application for licence; (b) licence fee payable on approval of the licence for the duration of the licence period; (c) annual levy payable in arrears at the end of each financial year; (d) licence renewal or extension fee payable on the expiration of the licence validity period or at the time of licence extension as the case may be. (2) The annual levy shall be payable to the Commission on a quarterly basis no later than 30 days after the end of each quarter which would be reconciled annually by the Commission. (3) Where the licensee fails to pay the annual levy as determined by the Commission within the 30 days' timeframe after the end of each quarter, the licensee shall pay to the Commission, an interest on the amount unpaid, at the prevailing Bank of Sierra Leone monetary policy rate. (4) The fees to be paid under these Regulations shall be as the Commission may by statutory instrument published in the Gazette prescribe. 7. (1) An application for a licence under these Regulations shall be- (a) made in writing, addressed to the Commission and delivered electronically, by hand, or by courier to the Commission at its headquarters or other address as the Commission shall designate for that purpose; (b) signed and dated by the authorised representative of the applicant. (2) An applicant for a licence under these Regulations shall send 3 paper copies of their application and applicants submitting applications electronically shall also send 3 paper copies of their application, to arrive at the Commission no later than 10 days after the application has been submitted electronically. (3) An application to the Commission shall be addressed to the Director-General, at the address indicated on the Commission´s website. 8. (1) An application for a licence under these regulations shall be as follows - (a) application form for basic mini-grid licence shall in the form as set out in Schedule 1 (b) application form for full mini-grid licence shall in the form as set out in Schedule 2 (c) Application form for full mini-grid licence (multiple project sites). shall in the form as set out in Schedule 3 (2) An application for a licence shall be accompanied by information relating to the specific licence (basic mini-grid licence or full mini-grid licence) applied for. (3) Applications for full mini-grid licence shall be accompanied by a confirmation issued by the Ministry affirming the site(s) for mini-grid application. Licence fees and annual operating levies. Application for licence. Form of 10 11 (4) Blank application forms shall be obtained in person, by electronic mail, or by regular mail, from the office of the Commission, at the address indicated on the Commission's website, or downloaded from the Commission's website. 9. (1) An applicant shall, upon submission of the application, pay a non-refundable processing fee as the Commission may by statutory instrument prescribe. (2) An application fee under sub-regulation (1) shall be paid by bank draft or electronic transfer and an application shall not be deemed to be complete until the fee has been paid. 10. (1) The Commission shall acknowledge receipt of a complete application for licence within 10 days of receiving a complete application, by issuing a letter of acknowledgement to the applicant indicating the date on which the Commission received the application form. (2) The Commission may send an email acknowledging receipt of the application in addition to the letter of acknowledgement. 11. (1) The Commission may require the applicant to furnish additional documents to complete a licence application and for that purpose, notify the applicant in writing that the application is incomplete or there is a need for additional information. (2) The notification referred to in sub-regulation (1) shall indicted - (a) a description of the additional information required by the Commission; (b) that the additional information must be submitted within a period of 14 days. (3) An application for a licence shall lapse if- (a) the applicant does not submit all required documents within the period of 14 days specefied in paragraph (b) of sub-regulation 2; or (b) all requirements are not met within a period of 3 months after the submission of the (4) An application which has lapsed under sub-regulation (3) cannot be reactivated but may be resubmitted as a new application, upon payment of the prescribed application fee. 12. (1) The Commission shall within 30 days make a decision on the licence and notify the applicant of its decision in writing. (2) The 30 days referred to in sub-regulation (1) shall be deemed to commence on the date the Commission received all the material information and documentation requested as part of the process for ensuring the completeness of the application. 13. Where the Commission grants the licence, the Commission shall inform the applicant in writing of the grant and the terms and conditions of the licence. 14. (1) The Commission may refuse an application where - (a) the application or the information supplied with the application fails to meet the required criteria; (b) the Commission finds the information submitted to be false, invalid and or misleading; (c) the applicant has failed to produce, when requested, additional information, within the specified time (which shall not be less than 14 days); Application Fee. Acknowledgement of receipt of Additional information. Decision of Grant of Refusal of 12 13 (2) Where none of the conditions under sub-regulation (1) exist, the Commission shall only refuse the grant of a licence based on reasons relating to the financial, technical and managerial capability of the applicant. (3) An applicant whose application for a licence is refused may appeal within 7 days of the receipt of the notification from the Commission about the refusal. (4) The Commission shall consider any representations made by an applicant under sub-regulation (3) and shall duly notify the applicant in writing of its decision within 7 days. 15. (1) The Commission may modify a licence granted if the modification is required and permissible under sub-regulation (4). (2) A licensee may apply for modification of a licence any time after the issuance of the licence. (3) An application for modification of a licence shall be in the form prescribed in Schedule 4: (4) A modification of licence shall become necessary before - (a) a new mini-grid site is added by a mini-grid licensee, or (b) an extension of the mini-grid distribution network into another community, or (c) a mini-grid licensee is classified in a higher licence fee category, based on the aggregate generation capacity of all mini-grids, as defined in the licence fee schedule due to extension of existing mini-grid sites. (5) The procedure prescribed for licence applications, in so far as it can be applied by the Commission, shall be followed when processing applications for licence modifications. 16. (1) The Commission may suspend, cancel or revoke a licence if satisfied that - (a) the licensee has breached a term or condition of a licence; or (b) it is in the public interest to do so. (2) The Commission may, before suspending, cancelling or revoking a licence under sub-regulation (1), give written notice to the licensee of its intention, including the reasons for suspending, cancelling or revoking the licence and may in the notice require the licensee to show cause in writing within 7 days of the notice why the licence should not be suspended, cancelled or revoked. (3) The Commission shall, after considering the explanation of the licensee under sub-regulation (2), inform the licensee in writing of its decision within 15 days of receiving the explanation of the licensee showing cause why the licence should not be suspended, cancelled or revoked. (4) Where a licence is not utilised within 1 year from the date of its grant, the licence shall be cancelled or revoked by the Commission after serving at least 30 days' notice on the licensee. (5) The Commission may, upon the suspension, cancellation or revocation of a licence, make such decisions regarding the undertaking of the licensee as are in the opinion of the Commission necessary for maintaining continuity in the provision of the service rendered under the licence. (6) The Commission may require a licensee after suspension, cancellation or revocation of licence to decommission and remove the mini-grid assets within 6 months after suspension or cancellation of licence. Modification of licence. Suspension, cancellation or revocation of licence. 17. (1) A licence shall not be transferred except with the written approval of the Commission. (2) An application for a transfer of a full mini-grid licence shall be in the form prescribed in Schedule 5: (3) The Commission shall render its decision regarding an application for transfer within 30 days of receipt of the application. 18. (1) A licensee shall not change its name, majority shareholder or controlling interest without the written approval of the Commission. (2) A licensee shall, before changing its name, majority shareholder or controlling interest, apply to the Commission for approval, which the Commission shall, subject to sub-regulation (3), not refuse. (3) The Commission shall, before granting the approval of change of name, majority shareholder or controlling interest under sub-regulation (2), consult the Registrar of Companies, National Revenue Authority and other relevant agencies on the matter. (4) Within 15 days after the approved change of name or shareholding structure has been entered into the Register of Companies by the Registrar of Companies, the applicant shall submit the relevant certificate of the registration to the Commission. (5) A name change shall not be approved if it is misleading or bears such resemblance or similarity to another company's name which may tend to create confusion or problems in distinguishing the entities. 19. (1) An application for the renewal of a licence shall be as follows (a) application for the renewal of basic minigrid licence shall be as set out in Schedule 6 (b) application for the renewal or extension of a full mini-grid licence shall be as set out in Schedule 7: (2) An application for the renewal or extension of a licence shall be accompanied by such non-refundable renewal or extension fee as the Commission may by statutory instrument prescribe. (3) Regulations 10 to 16 shall apply to the renewal or extension of a licence with the necessary modification. (4) Where a licensee fails to renew or extend its licence or the application for renewal or extension is rejected by the Commission, the licensee shall cease operations. 20. (1) An application for a licence or the renewal or extension of a licence may be withdrawn by the applicant in writing at any stage of the application. (2) An application which has been withdrawn under subregulation (1) shall not be reactivated but may be resubmitted as a new application upon payment of the prescribed application fee. 21. A licence may be surrendered by the licensee with the written consent of the Commission. 22. Where a licence expires and is not renewed, the Commission may require the licensee to remove the mini-grid assets within 6 months after expiration. PART III - GENERAL CONDITIONS OF A LICENCE 23. A licensee shall - (a) provide a service that is safe, adequate, efficient, reasonable and non-discriminatory; (b) carry out works relating to the licence activity 14 15 Renewal or extensions of lience. Withdrawal of Change of name,majority shareholder or controlling interest. Surrender of Expiration o f Transfer of licence Compliance with Act, regulations, rules, guidelines codes and standards. including engineering, construction, commissioning, repairs, rehabilitation, operation and maintenance in accordance with the Act and applicable standards; (c) ensure that the charges, rates and tariffs obtained in respect of the licenced activity shall be as approved by the Commission. 24. (1) Full mini-grid licensees shall build mini-grid generation assets in accordance with the Mini-grid Code, as the Commission may by statutory instrument published in the Gazette prescribe. (2) Where the Commission has not published a Minigrid Code under sub-regulation (1), mini-grid generators shall be installed according to relevant IEC standards or British standards valid and prescribed at the time of construction. (3) Full mini-grid licensees shall build distribution networks according to the Distribution Code, as the Commission may by statutory instrument published in the Gazette prescribe. (4) Where the Commission has not published a Minigrid Code under sub-regulation (1), mini-grid distribution networks shall be built according to relevant IEC standards or British standards valid and prescribed at the time of construction. 25. (1) A licensee shall comply with all directions, orders, determinations and decisions made by the Commission, under sections 62 and 63 of the Act and these Regulations. (2) Subject to the Act, any costs associated with compliance with such decisions, orders, directions and determinations of the Commission shall be the responsibility of the licensee. (3) In order to comply with any order or direction made by the Commission in accordance with sections 62 and 63 of the Act, a licensee shall allow the Commission or any other authority or person specified in the order, such access to or control of its property as the Commission requires. 26. (1) A full mini-grid licensee shall be responsible to acquire private land or public land lease or rights over or under private or public land from the responsible authorities or respective owners for- (a) the construction of power stations and distribution networks; (b) the lopping or cutting of any tree, shrub or hedge which obstructs or interferes with an existing supply line, the laying or erection of a supply line or the proposed route of a supply line; (c) the right to enter the land for any of the following purposes - (i) surveying, construction, examination, operation, maintenance or removal of power generating stations; (ii) surveying, construction, examination, operation, maintenance or removal of distribution networks equipment; (iii) attaching to any wall, house or building any bracket or other suitable fixture required for the carrying or support of a supply line or any other electric apparatus (In making such attachment, paramount consideration shall be given to the safety of the occupants and reasonable effort should be made to minimise any inconvenience that would occur as a result of such attachment); (iv) any other work connected with its function under these Regulations. 16 17 Codes and standards. Decisions, orders, directions and determinations of Commission. Acquisition of land and other related matters. (2) A full mini-grid licensee shall, when practicable, give reasonable notice to the occupier of any land on which it intends to enter. (3) In the exercise of the activities described in subregulation (1) the full mini-grid licensee shall do as little damage as possible and shall pay reasonable compensation for any damage done. (4) A mini-grid licensee shall consult with the ministry responsible for roads before breaking up any street or road for the laying of supply lines under any street or road, and shall make good any street or road broken up under this subsection. (5) A mini-grid licensee shall lay supply lines across main streets and main roads at a minimum height as specified by the Commission and erect posts, poles and other erections to support the lines laid at locations so as not to interfere with the passage along the street or road. (6) A mini-grid licensee shall not place any electric cable across a navigable waterway whether the cable is placed above or below water or under the ground unless it obtains written approval of the Minister. (7) When the approval of the Minister to place electric cables across navigable waterways is obtained under sub-regulation (6), the mini-grid licensee shall inform the appropriate person or body of its intention to place the cable across the waterway and the person or body shall issue an order delineating the affected area and in the case of an underwater cable, declare the area to be a prohibited area for anchorage; place a cable above the water to restrict the height of vessels passing through the area. (8) Where a person or body requires the position or height of the cable placed across the navigable river or waterway to be altered, the Minister may by notice in writing require the mini-grid licensee to alter the position or height of the cable subject to conditions which, failing agreement between the parties, may be prescribed by the Minister and the cost of the alteration shall be paid to the minigrid licensee by the person or body requiring the alteration and the mini-grid licensee shall not be compelled to carry out the alteration until payment of the cost is secured. 27. (1) A full mini-grid licensee shall serve a written notice on the occupier of any land or building of its intention to construct a supply line across the land or to attach a fixture to the building. (2) A notice under sub-regulation (1) shall give a description of the nature of the line or fixture and the manner in which it is to be constructed or attached. (3) Where an occupier approves with a signature or fails to lodge a written objection with the mini-grid licensee within 30 days after service of the notice, the mini-grid licensee may proceed with the work. (4) If within 30 days after service of the notice under subregulation (1), the occupier lodges a written objection with the minigrid licensee the work shall not be undertaken by the mini-grid licensee unless it obtains the written approval of the Minister. (5) Where the owner of any land or building on which a supply line or fixture is constructed or attached requires the position of the supply line to be altered, the cost of the alteration shall be paid to the mini-grid licensee by the person requiring thealteration and the mini-grid licensee shall not be compelled to carry out the alteration until the payment is secured, unless the Minister is fully satisfied with the requirement of the owner and gives notice in writing to the mini-grid licensee to alter the position of the line or fixture. 28. A licensee shall take all reasonable steps to detect and prevent- 18 19 Notice of intention to enter and construct. Detection and prevention of theft, damage and meter interference. (a) theft of electricity in the service area; (b) damage to or fault in any electric plant or electricity meter in the service area; (c) interference with any electricity meter in the service area; and any unrecorded consumption of electricity in the service area. 29. (1) In the carrying out of its functions under a Full Minigrid licence, a Full mini-grid licensee shall not discriminate between consumers of the same category, or consumer categories or set terms which are unduly onerous. (2) The obligation under sub-regulation (1), not to discriminate between consumers of the same category, shall be in addition to the obligations not to discriminate as specefied in paragraph (b) of subsection (1) of section 39, subsection (2) of section 47 and subsections (2) and (3) of section 57 of the Act. (3) Where a full mini-grid licensee provides connection to or use of the distribution and sales system, it shall not discriminate in respect of price or other terms between any users or classes of users of the distribution and sales system. (4) Nothing in sub-regulations (1) or (2) shall prohibit a licensee, subject to approval by the Commission, from providing connection and use of system to its customers on prices or other terms that materially differ from those offered to other customers where such differences reflect different circumstances of service including load factor, power factor, the level and timing of peak demand, location, voltage, available resources and any other relevant factors. 30. A full mini-grid licensee shall not restrict or refuse to provide regulated services unless - (a) it has the written permission of the Commission to restrict or refuse to provide the regulated service under specific circumstances, including unsuitable building structures, purchasing power of consumers, distance to the existing distribution grid or poles of the distribution grid, power capacity limitation and energy production limitations of the power plant; or (b) its licence is, as the case may be, revoked, suspended, cancelled or expired. 31. (1) A licensee shall undertake preventive maintenance activities to ensure continuation and reliability of distribution services. (2) A full mini-grid licensee shall prior to undertaking preventive maintenance, replacement, restoration or any other construction that may lead to interruptions of the provision of power to consumers for more than 24 hours - (a) inform the public at least 3 days prior to suspending the provision of the distribution service; and (b) ensure that all scheduled distribution service interruptions are planned for the shortest possible time. 32. (1) A licensee shall immediately take all reasonable action to restore services in the event supply and delivery of electric energy to consumer supply point is interrupted for any reason including unplanned outages. (2) A licensee shall, in the event of any damage to a plant or equipment that poses a danger or a risk of injury to the public or to property, immediately upon being made aware of such damage, 20 21 Non-discrimination. Disconnection. Planned outages and preventive maintenance. Interruptions and emergency. remove such danger or risk of injury prior to carrying out any emergency repair or rehabilitation. (3) A licensee shall promptly repair damaged plant or equipment and other facility defects and reconnect its consumers. (4) A licensee shall inform the public within 24 hours upon being made aware of such damage on the duration of the service interruption. (5) The Commission may impose penalties or take other remedial actions specified in a licence in the event a licensee fails to fulfil its obligations under sub-regulation (2). 33. (1) A licensee shall take such actions within allowable technical limits as may be reasonably required for emergency preparedness and restoration of its mini-grid, including removal of vegetation close to distribution network lines before the rainy season. (2) A licensee shall establish and implement procedures within allowable technical limits to ensure the safe and continuous operation of the mini-grid in emergency situations. 34. (1) An inspector appointed by the Commission shall, upon giving 3 days' notice to a licensee, have the right to access the sites and offices of mini-grids to inspect the mini-grid and documents and the licensee shall render reasonable assistance in the course of inspection of the mini-grid and documents. (2) During inspection, an inspector may, inter alia - (a) make copies or take extracts from any books of accounts or records kept by a licensee; and (b) inspect machinery, equipment, appliances, meters, fittings and apparatus. (3) After inspection, the inspector shall write an inspection report which shall prescribe remedial actions and cure periods to the mini-grid licensee. (4) The inspection report shall be made available to the mini-grid licensee and the licensee shall comment on the inspection report within 14 days of receipt of the report. (5) Where upon investigation, the Commission concludes that a licensee has not complied with the Act or these Regulations, the Commission may without prejudice to the penalties prescribed in the Act or these Regulations - (a) take appropriate actions as provided in the licence; or (b) take such other actions as it deems appropriate to protect the interest of the consumer. PART IV - SPECIFIC CONDITIONS OF A LICENCE 35. (1) The authorised business activities for basic mini-grid licensees shall be electricity generation and sales in accordance with section 29 of the Act and this Regulation. (2) Notwithstanding sub-regulation (1), a basic mini-grid licensee may be engaged in such business activities essential to the conduct of his business as approved by the Commission. 36. A basic mini-grid licensee or a subsidiary of a basic minigrid licensee shall not be engaged in the distribution and supply of electricity to any premises in Sierra Leone other than those for which the licence has been granted in accordance with paragraph (b) of subsection (6) of section 30 of the Act. 37. A basic mini-grid licensee shall - (a) operate, maintain, repair and re- place as necessary and protect its mini- grid components to ensure adequate, economic, reliable and safe supply of electricity to its consumers; 22 23 Preparation fo r emergency situation. Inspection. Authorised basic mini- Prohibited basic mini- Conditions of basic minigrid licence. (b) comply with the technical conditions of power generation and sale specefied in his licence or prescribed in these Regulations; (c) properly take into account the environmental effects of its activities under the licence; (d) maintain and operate the mini-grid in order to ensure efficiency, reliability, public and workers' safety; (e) educate consumers on safe use of electricity; and (f) keep a verifiable record of its consumers and the nature and level of commercial transactions. 38. (1) The authorised business activities for full mini-grid licensees shall be electricity generation and sales in accordance with section 29 of the Act and this Regulation. (2) Notwithstanding sub-regulation (1), a full mini-grid licensee may be engaged in such business activities essential to the conduct of his business as approved by the Commission. 39. A full mini-grid licensee or a subsidiary of a full mini-grid licensee shall not be engaged in the distribution and supply of electricity to any premises in Sierra Leone other than those for which the licence has been granted in accordance with paragraph (b) of subsection (6) of section 30 of the Act. 40. (1) A full mini-grid licensee shall - (a) operate, maintain, repair and replace as necessary and protect its full mini-grid components to ensure the adequate, economic, reliable and safe supply of electricity to it consumers; (b) comply with the technical conditions of power generation, distribution and sale specefied in its licence or prescribed in these Regulations; (c) properly take into account the environmental effects of its activities under the licence; (d) maintain and operate the full mini-grid in order to ensure efficiency, reliability, public and workers' safety; (e) install, operate and maintain the distribution network in compliance with the relevant provisions of the distribution code issued by the Commission; (f) propose distribution and sale of electricity tariffs in accordance with the mini-grid tariff determination principles provided in Part VIII for the approval of the Commission; (g) educate consumers on safe use of electricity prior to the time of connection and provide a safety brochure understandable for lay persons at the time of signing of service agreement; (h) establish procedures for settling consumer complaints for the approval of the Commission; and (i) prepare a decommissioning plan for the removal of the assets and equipment upon request from the Commission. (2) Where a full mini-grid licensee is interconnected to a distribution network, it shall comply with the requirements of the distribution code as well as the operational instructions of the distribution network operator, as long as the distribution network operator’s operational instructions are reasonable and any technological requirements are not to be excessive and are specified in good faith. 24 25 Authorised full mini- grid Prohibited Conditions of (3) A full mini-grid licensee shall in the course of its business comply with the relevant provisions of the consumer service rules relating to the following activities - (a) billing; and (b) electricity measurement. 41. (1) A full mini-grid licensee shall - (a) maintain separate accounting records for the full mini-grid business, in such form and containing such particulars as may be specified by the Commission; (b) keep the accounts in accordance with such regulatory accounting guidelines as may, from time to time, be issued by the Commission; (c) where requested by the Commission, provide such accounts to the Commission as are necessary for the Commission to carry out its functions under the Act consistent with applicable laws, financial regulations and best accounting standards; (d) where appropriate, keep consolidated accounts for other, non-licenced activities, so that the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, the licenced business are separately identifiable in the books of the licensee (and any affiliate of the licensee) from those of any other business; (e) prepare the accounts of a full mini-grid in such form as may be specified by the Commission and for this purpose the Commission may - (i) specify the form and content of accounting statements, including information on specified types of revenue, cost, asset and liability and information on the revenues, costs, assets and liabilities attributable to specified activities; (ii) require any reconciliation with the annual accounts of the licensee prepared under any relevantlaw; (iii) specify the accounting principles and the bases of valuation to be used in preparing financial statements; (iv) specify the nature of the report by the auditors required to be given in respect of financial statements; and (v) specify the required timing of reporting by the licensee to the Commission. (f) so far as reasonably practicable and unless otherwise approved by the Commission prepare such accounting statements - (i) having the same content and format as the annual accounts of the licensee (and any affiliate) in relation to the licenced business prepared under any relevant law; (ii) conforming to the best commercial accounting practices and accounting standards currently in force or such other standards as may be notified to the licensee from time to time; 26 27 Accounts of full mini- grid (iii) stating the accounting policies adopted; (iv) with the exception of the part of such statements which shows separately the amounts charged, apportioned or allocated and which describes the basis of charge or apportionment or allocation respectively), be published with the annual accounts of the licensee. (2) The full mini-grid licensee shall provide, in respect of the accounting statements prepared in respect of a financial year, an auditor's report, to be delivered to the Commission, stating whether, in their opinion, those statements have been properly prepared in accordance with these Regulations and give a true and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, the distribution business. (3) References in this Regulation to costs or liabilities of, or reasonably attributable to, the licensee's generation, distribution and sales business or any other business of the licensee shall be construed as excluding taxation, capital liabilities which do not relate principally to a particular business, and interest thereon, and any references to any accounting statement shall be construed accordingly. 42. A person authorised by the Commission to inspect the facilities and audit the accounts of a full mini-grid licensee shall do so, during business hours after giving 5 days' notice in writing and the full mini-grid licensee shall render reasonable assistance, including provision of access to the facilities and of required documents to the person so authorised to inspect and audit the accounts. 43. (1) A licensee shall, in accordance with section 12 of the Act, furnish the Commission, in such manner and at such times as the Commission may require, information of any description specified by the Commission, as the Commission may consider necessary for the purpose of performing its functions under the Act. (2) A full mini-grid licensee shall provide reports substantially in the form prescribed by the Commission in Schedule 9: (3) A report submitted to the Commission by a full minigrid licensee under sub-regulation (2), shall not be deemed confidential and can be available to the public at the discretion of the Commission. (4) A licensee shall notify the Commission within 14 days of any material change of information provided to the Commission under this Regulation, including but not limited to the following - (a) the registered business address of the licensee; (b) facilities owned by the licensee; (c) changes in the licensee's company registration details; (d) changes in the key offices of the licensee; (e) any change in the operating conditions of the licensee affecting environmental protection requirements. PART V- CONSUMER SERVICE RULES 44. (1) A mini-grid licensee shall provide power supply services that meet the requirements set by the Commission regarding power quality, power availability and power reliability, as well as accountability and performance reporting. (2) For the purposes of this Regulation - (a) power quality is characterised by voltage imbalance, transients often caused by lightning, short and long duration voltage variations and frequency variations in minigrids coupled on the AC-busbar, and resistive voltage drop, DC ripple, switching 28 29 Inspection and audit of accounts of Reporting requirements and provision of information to Quality of service. noise, transients and short and long duration voltage variations in mini-grids coupled on the DC-busbar; (b) power availability is defined by power draw, energy available and duration of daily service; (c) power reliability is determined by the frequency and the duration of power outages, as defined by the System Average Interruption Frequency Index and the System Average Interruption Duration Index; (d) accountability comprises consumer accountability and mini-grid licensee accountability - (i) consumer accountability describes processes for consumers to know whether they are receiving the service that they agreed to pay for, and mechanisms to verify power delivery to consumers and performance parameters include ability to check voltage levels at service drops, periodic recorded voltage surveys conducted to ensure compliance, ability to record hours of service at service drops, documented technical summary of energy services including power and consumption; mini-grid licensee accountability is ensured through 2 levels of formal performance reporting - (ii) Technical information: measurements addressing system performance, energy usage, safety concerns, and operational issues; (iii) Business (non-technical) information: measurements that allow an understanding of overall energy usage, payment rates, and cost of system operations. (3) A basic mini-grid licensee shall comply with the requirements of the base level of services as specified in Schedule 10: "Quality of service framework" or as otherwise approved by the (4) A full mini-grid licensee shall comply with the requirements of the high level of service as specified in Schedule 10: 45. (1) A basic mini-grid licensee shall comply with the health and safety guidelines as specified in Schedule 11: (2) A full mini-grid licensee shall comply with the health and safety code as approved and amended from time to time by the (3) A mini-grid licensee shall take reasonable steps in protecting persons and property from injury and damage that may occur as a result of carrying out the licenced activity including ensuring that appropriate electrical protective devices are installed by the consumer. 46. A mini-grid licensee shall comply with the environmental requirements prescribed for the sector under the Environment Protection Act, 2008 (Act No. 11 of 2008) and Regulations made under it. 47. (1) A basic mini-grid licensee shall file with his licence application, proof of the technical qualification (e.g. certificate) of the electrician responsible for the technical operation and installation of consumers` connection. 30 31 Health and safety. Environment protection. Connection of consumers. (2) A full mini-grid licensee shall file for approval by the Commission - (a) a consumer service agreement defining the terms and conditions of the licensee's level of service to consumers as well as each party's rights and responsibilities; (b) such other agreement as may further explain and enhance understanding of consumers regarding the licensee's terms and conditions of service. (3) A full mini-grid licensee shall- (a) post a notice in a conspicuous place in each business office of the licensee where applications or payments for service are received and inform the consumers of any new tariffs; (b) provide consumers with an information brochure containing the following information - (i) safe use of electricity; (ii) grounds for disconnection of service; (iii) how the consumer's billing disputes may be resolved; (iv) steps necessary to have service reconnected after disconnection; (v) the appropriate contact and place to register a complaint; (vi) how bills may be paid and how the tariff information may be obtained; (vii) how to read meter, how to use electricity efficiently and safely, and the process by which the consumer may exercise such rights. (c) establish procedures for dealing with the complaints of consumers in accordance with section 56 of the Act; (d) provide, install and maintain the necessary equipment required for the supply and sale of electricity to consumers; (e) provide, install and maintain devices that meter electric energy in accessible outside areas, for example on an exterior wall of a building or on poles. (f) before connecting any consumer inspect and certify that the indoor installation allows safe electricity usage at the time of connection; (g) use certified electricians or professionals with a relevant technical qualification for electrical installation, electrical inspection and maintenance; (h) provide application form for a new connection with terms and conditions simply and clearly stated in plain English; (i) enter into standardised consumer service agreements, as approved by the Commission, with every consumer specifying, amongst other things, the point at which ownership of the assets from the licensee ends and where ownership of and liability for assets of the consumer begins. 32 33 48. (1) A full mini-grid licensee shall deliver bills for electricity service to consumers for - (a) pre-payment consumers at the time of payment for electricity, and (b) credit meters or measuring devices monthly, unless otherwise authorised by the (2) The consumer´s bill may be either on paper or digital or sent via text message and shall show the following information - (a) the date of bill issuance; (b) the date of the most recent meter reading; (c) the units billed; (d) the number of units billed; (e) the rate per unit; (f) the total base bill; (g) the meter connection bill; (h) the Goods and Services Tax on electricity sales; and (i) the date by which the consumer must pay or have paid the bill. (3) A full mini-grid licensee shall charge the consumer only for electricity that is measured by a meter or other measuring devices approved by the Commission. 49. (1) A full mini-grid licensee shall have the right to inspect an electricity device at the consumer's premises. (2) Where tampering or theft is detected or where reasonable but unsuccessful attempts have been made to gain access to a device, the full mini-grid licensee may disconnect the supply after having delivered a related written warning to the consumer. 50. (1) A consumer who uses electricity supplied to him by a full mini-grid licensee for purposes other than that for which it is supplied commits an offence and is liable on conviction to a fine of not less than 20,000, 000 . 00 Leones. (2) A person who operates or controls an installation or apparatus for the distribution or supply of electricity and does not possess the prescribed qualification commits an offence and is liable on conviction to a fine of not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. (3) A person who employs or permits to be employed a person under the age of 16 years, on a service involving management of or attendance on, or proximity to live apparatus not effectively insulated commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. (4) A person who wilfully tampers with or adjusts any installation or part of an installation so as to cause or likely to cause injury to human life or damage to any apparatus or other property commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. (5) A person who by reckless or negligent act or omission inrespect of any installation under his control causes harm to any person or damage to property commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. (6) A person who dishonestly - (a) abstract electricity; (b) consumes electricity; (c) uses electricity; 34 35 Billing. Inspection of electricity devices. Offences. (d) alters the index of any meter or other instrument used in connection with any authority installation or licenced installation for recording the output or consumption of electricity; or (e) prevents any meter or instrument from duly recording the output or consumption of electricity, commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. (7) In a prosecution for an offence under sub-regulation (6),- (a) the existence of artificial means which, whether alone or in conjunction with additional artificial means not found, could be used for altering, or facilitating the alteration of, the index of any meter or instrument for registering the quantity of electricity supplied; (b) the exercise of artificial means which whether alone, or in conjunction with additional artificial means not found, would prevent, or facilitate the prevention of any meter or instrument from duly registering the quantity of electricity supplied or would facilitate the dishonest abstraction, consumption or use of electricity; or (c) the fitting of a mechanical or other means to or the absence or removal of a part or connection from, or the interference with a part of, or connection with, an apparatus in the circumstances that the fitting, absence, removal or interference would prevent or facilitate the prevention of a meter or together prevent the instrument from duly registering the quantity of electricity supplied, or would facilitate the dishonest abstraction, consumption, or use of electricity; shall be prima facie evidence that sub-regulation (6) has been contravened. (8) A person who wilfully damages a meter or other instrument used on, or in connection with the full mini-grid licensee's installation for recording the output or consumption of electricity commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or imprisonment for a term not exceeding 2 years or to both such fine and imprisonment in addition to being liable for full compensation payment for the damage done. (9) A person who without due authority wilfully extinguishes or damages any public lamp, bracket or other means of supporting a public lamp commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term exceeding 2 years or to both such fine and imprisonment in addition to being liable for full compensation payment for the damage done. (10) A person who, without the consent of a full mini-grid licensee, affixes or causes or permits to be affixed any advertisement, bill or notice or any paper against or upon, or otherwise defaces any property of the mini-grid licensee or any post, bracket or other apparatus or the enclosure used for or in connection with the full mini-grid licensee´s installation commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or imprisonment for a term not exceeding 2 years or to both such fine and imprisonment in addition to being liable for full compensation payment for the damage done. (11) A person who wilfully or negligently damages a supply line, post, pole or other apparatus connected with the supply of electricity commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment. 36 37 (12) A person who steals electric cables, equipment or materials commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both the such and imprisonment. (13) A person who wilfully obstructs, resists or in any way interferes with, or who assists any other person in obstructing, resisting or in any way interfering with any officer or employee of the full mini-grid licensee acting in the exercise of any power under this Regulation commits an offence and is liable on conviction to a fine not less than 20, 000, 000 . 00 Leones or to imprisonment for a term not exceeding 2 years or to both the fine and imprisonment. (14) Where a full mini-grid licensee has reasonable cause to believe that there is in any premises evidence of the commission of an offence under this Act a person authorised in that behalf may, with a warrant issued by a Judge for that purpose enter and search the premises and may seize and take possession of the evidence. (15) In performing the duties under sub-regulation (14), the authorised person shall present his identification to any person in charge of the premises searched. PART VI - ELECTRICITY MEASUREMENT DEVICES 51. (1) Unless otherwise authorised by the Commission, a full mini-grid licensee shall provide, own, install, and maintain all electricity measurement devices necessary for provision of electricity to its customers. (2) Prior to usage of any device for measurement of electricity, the mini-grid licence applicant or licensee shall submit an application in writing for approval of electricity measurement device to the Commission. (3) Upon receipt of a request under sub-regulation (2), the Commission may choose to test a sample of the measuring device and any measuring device software (if applicable) or r e q u e s t additional information from the applicant or licensee in order to reach a decision to approve or refuse the application. (4) The Commission shall communicate its decision regarding the approval or refusal of the application to the mini-grid licence applicant or licensee within 30 days after receipt of the 52. (1) Electricity meters that meter electric energy in minigrids shall be selected with a suitable rated current, depending on the average demand of the mini-grid consumers. (2) An electricity meter shall meet the following requirements - (a) compliant awith IEC 62052-11 and IEC 62053- 21 and supported by a test certificate from an independent internationally accredited testing laboratory (accredited according to ISO/IEC 17025 or equivalent); (b) accuracy class 1 or 2, for consumers with low demand the rated current shall be either 1A, 1.5 A, 2 A, and 2.5 A; (c) for consumers with high demand the rated current can be 5 A and above; (d) have a maximum continuous current of at least 6 A; (e) be suitable for Sierra Leone's climatic conditions according to IEC 62052-11, must fulfil IP54 and have suitable protection against the sunlight and rain; (3) Other electricity meters for consumers connected to a mini- grid of a mini-grid licensee that are not fully compliant with IEC 62052 and IEC 62053 shall meet following requirements - (a) rated values for current, voltage, frequency and accuracy following IEC 62052 and IEC 62053; 38 39 Electricity devices approval. Electricity meter (b) rated values for current, voltage, frequency and accuracy are permanently labelled on the housing; (c) maximum continuous current of at least 6 A; (d) maximum short-term overcurrent following IEC 62053; (e) pulse or transient interference following IEC 62052; (f) electrical insulation following IEC 62052; (g) own consumption and load losses are specified; (h) clearly specified installation and connection plan as well as other relevant specifics of the connections are provided; (i) suitable for outside installation, e.g. outside of houses or on poles; (j) mechanic requirements following IEC 62052; (k) suitable enclosure in matters of ingress protection (minimum IP54) for the tropical climate of Sierra Leone; (l) suitable enclosure (potentially including external canopy) and electronic equipment for temperature, relative humidity (cyclic humid heat), and direct sunlight for outdoor installation in the tropical climate of Sierra Leone; (m) end-user have permanent access (as practicable) to the relevant meter readings, e.g. kWh, monetary value, time credit, and in case of meters with the function of load limitation toa representative present load reading. (4) In addition to sub-regulation (3), an applicant or licensee shall request approval by the Commission for other electricity measurement device and for that purpose shall, at the time of the request, submit to the Commission, a technical report which shall include a table comparing the actual specifications of meter contrasted with the requirements as defined in sub-regulation (3) as well as any other information to support electricity measurement device. (5) The approval by the Commission of an electricity measurement device shall not be construed in any way to absolve the applicant or licensee of his responsibility for the functioning of the measurement device for the intended purpose. 53. (1) The Commission may refuse an application for electricity measurement device approval where - (a) the application or the informationsupp l i ed with the application fails to meet the required criteria as specified in sub-regulations (2) and (3) of Regulation 48; (b) the Commission finds the information submitted to be false, invalid and or misleading; (c) the applicant has failed to produce, when requested, additional information, within the specified time. (2) An applicant whose application for an electricity measurement device is refused may appeal within 14 days of the receipt of the notification from the Commission about the refusal. 40 41 Refusal of electricity device approval. (3) The Commission shall consider any representations made by an applicant under sub-regulation (2) and shall notify the applicant in writing of its decision within 14 days. 54. (1) The Commission may review an electricity measurement device approval upon receipt of a petition, stating major or consistent electricity problems with the electricity device, signed by 20% of the consumers of a community served by the mini-grid licensee and after technical tests in line with the prescribed technical specifications of sub-regulation (2) of Regulation 58 have been conducted with a representative sample of the electricity measurement device showing proof that the device is not working properly before 75% of the economic lifetime of these devices has passed. (2) The Commission may, after the review of an electricity measurement device approval under sub-regulation (1), suspend or cancel an electricity measurement device approval if satisfied that more than 20% of the electricity measurement devices are faulty. (3) The Commission may prescribe the exchange of all faulty meters within 6 months and in case the electricity measurement devices need to be replaced before 75% of the economic lifetime of these devices has passed, the Commission may deem the cost of replacement meters fully or partially non-eligible for the determination of rates charged to the consumers. (4) The Commission may, before suspending or cancelling an electricity measurement device approval, give written notice of its intention including the reasons to the licensee and may in the notice require the licensee to show cause in writing, within 14 days of the notice, why the electricity measurement device approval should not be suspended or cancelled. (5) The Commission shall, after considering the explanation of the licensee under sub-regulation (4), inform the licensee in writing of its decision within 14 days of receiving the explanation of the licensee showing cause why the electricity measurement device approval should not be suspended or cancelled. (6) Where an electricity measurement device approval is not utilised within one year from the date of its grant, the electricity measurement device approval shall be cancelled by the Commission by serving at least 30 days' notice on the licensee. (7) The Commission may require a licensee after suspension or cancellation of the electricity measurement device approval, to decommission and remove and replace the electricity measurement devices by approved devices within 6 months after suspension or cancellation. PART VII - MINI-GRID INTERCONNECTION RULES 55. (1) Where a main-grid utility or a full mini-grid licensee extends its distribution network to an area served by an isolated mini-grid under a basic mini-grid licence, on request of the main-grid utility or the full mini- grid licensee, the basic mini-grid licensee shall decommission and remove all its assets and equipment within 3 months after the main-grid utility or the full mini-grid licensee has started supplying electricity to the area. (2) Where a main-grid utility or a full mini-grid licensee extends its distribution network to an area served by a mini-grid under sub-regulation (1), the basic mini-grid licensee shall in such circumstances not be entitled to any refund or compensation. (3) Where a main-grid utility intends to extend its network to an area served by an isolated mini-grid under a full mini-grid licence, the full mini-grid licensee may choose one of the following options - (a) convert to an interconnected mini-grid based on a mini-grid interconnection contract between the full mini-grid licensee and the maingrid utility; (b) transfer all assets that the main-grid utility wishes to retain on the respective site in return for financial compensation from the main grid utility before distribution grid arrival equal to - 42 43 Suspension or cancellation of measurement device approval. Arrival of main-grid utility network to an area served by a mini-grid. ` (i) the residual value of privately financed assets after past depreciation (as calculated according to the tariff setting methodology), including privately financed assets remaining and transferred to the main-grid utility and privately financed assets decommissioned, removed and disposed by the mini-grid utility from the respective mini-grid site; (ii) the residual value of activated and amortised privately financed project development cost for the respective mini-grid site (as calculated according to the tariff setting methodology); and (iii) the audited revenue of the full mini-grid licensee generated from the mini-grid, commencing 12 months prior to the date of connection of the mini-grid to the main-grid utility's distribution network; (4) A full mini-grid licensee shall document the payment process as specified in Schedule 12: and submit the signed form to the Commission. (5) Where the parties fail to agree to the terms of the interconnection or compensation in accordance with sub-regulation (4), the parties shall submit the matter to the Commission for final determination in accordance with its complaints procedure and in so doing may employ the service of a firm of accountants as advisors. (6) A full mini-grid licensee shall remove the assets and equipment for which the ownership is not handed over to the main grid utility and recycle or dispose the assets in an environmentally friendly manner in accordance with environmental legislation and the licensee's decommissioning plan not later than 6 months after grid interconnection. (7) Where an interconnected mini-grid contract has expired and has not been renewed, the main-grid utility shall, on notification to the Commission re-integrate the interconnected minigrid into its network. (8) The compensation procedure described in paragraph (b) of sub- regulation (3) shall apply where a full mini-grid licensee removes the assets and equipment for which the ownership is not handed over to the main grid utility under sub-regulation (6) unless otherwise agreed in the interconnected mini-grid contract and approved by the Commission. PART VIII - COMMERCIAL ARRANGEMENTS 56. (1) Pursuant to subsection (2) of section 50 of the Act, a basic mini-grid licensee may demand and receive from a consumer any special tariff agreed to by the basic mini-grid licensee and the consumer, having informed the appropriate community authority of the special tariff agreed. (2) A basic mini-grid licensee shall include the agreed special tariff in the basic licence application form and communicate any changes of the agreed special tariff to the Commission. (3) Pursuant to sub-regulation (1), where the parties fail to agree on a tariff, the Commission shall provide, as far as practicable, the basic mini-grid licensee and the consumer affected by the tariff, a reasonable opportunity to be heard and take into account any representation made before it. (4) The Commission may review the basic mini-grid licensee tariffs upon receipt of a petition on the tariff charged signed by 60% of the consumers of a community served by a basic mini-grid 57. (1) Pursuant to paragraph (a) of subsection (1) of section 11 of the Act, the Commission has the power to set or otherwise determine retail tariffs for electricity services, including rates charged for the selling of electricity, connection charges for the provision of electricity metering devices and customer connection. 44 45 Tariff setting for basic mini-grid licensees. Determination of tariffs for licensees. (2) A full mini-grid licensee may, in order to achieve commercial sustainability and subject to the approval of the Commission, propose - (a) retail tariffs for specific consumer categories that take account of the ability of the respective consumers to pay; (b) retail tariff structure, including conventional kWh tariffs, flat rate tariffs, power tariffs or a combination of the above, based on the amount of electricity sold or the number of connections or the power provided or consumed, excluding any technical losses of power generation, power distribution and metering; or (c) connection charges which may be paid in instalments or fully charged upfront. (3) In making a determination on the setting of electricity retail tariffs and connection charge for full mini-grid licensees, the Commission may apply either the standard tariff determination methodology or such other methodology requested by the full minigrid licensee and approved by the Commission. (4) The standard tariff determination methodology shall be applied on a yearly basis by the Commission to determine the retail tariffs and connection charge to be charged by full mini-grid licensees based on costs related to private financing of the regulated services (power generation, distribution and sales activities), the sum of their operation costs, depreciation on capital and capitalised cost, specific reserves for repair, replacement and extension, taxes, plus a reasonable return on the privately financed regulatory asset base that adequately reflects the risks faced by the mini-grid operator and the tariff shall be calculated based on historic data from the last year (wherever reasonable) and shall be applied in the current year. (5) Booked costs shall not be approved automatically and stated consumer demand shall not be accepted automatically; the Commission shall ensure that the proposed costs for the regulated service reflect prudently incurred costs at a reasonable level of efficiency and that the underlying consumer demand is based on either verifiable data or prudent and reasonable demand projections based on verifiable data. (6) For the purposes of sub-regulation (5), a licensee shall be deemed to be prudent if it exercises good judgment and make decisions which are reasonable at the time they are made, based on information the licensee knew or ought to have known at the time the decision was made. 58. (1) Where a full mini-grid licensee desires to start a new service or revise existing rates charged by it for any service or if the validity period of the tariff granted will expire within 60 days, it shall, in a minimum of 60 days, make an application to the Commission for that purpose. (2) A tariff application under sub-regulation (1) shall be submitted in 3 signed hard copies and an electronic version shall be in such form as the Commission may prescribe. (3) In case of an inconsistency of the information provided in the hard copy and the electronic version under sub-regulation (2) the hard copy shall prevail. (4) The date of receipt of the application shall be the date when both the hard copies and the electronic version have been received by the Commission. (5) The Commission shall within 14 days from the date of receipt of the application communicate to the licensee any flaws or gaps identified and any additional information that the Commission may reasonably require in evaluating such application. (6) The Commission shall within 21 days after receipt of the notice and acceptance of the application, whichever is later, - 46 47 Tariff application for full mini- grid (a) give any consumer affected by the rate, a reasonable opportunity to be heard and shall take into account any representation made before it; (b) invite the licensee to make a presentation in support of its application. (7) The Commission shall within 30 days after receipt of the notice and acceptance of the application, whichever is later, take a decision on the rates, and communicate the decision to the licensee. (8) The Commission shall, in case of a rejection of the application communicate the reasons for the decision to the licensee and state the rates acceptable to the commission and the justification for these rates. (9) The Commission shall publish in the Gazette and relevant mass media the rate that has been approved within 20 days after the decision has been made. 59. (1) A tariff application for full mini-grid licensee shall be in the form set out in schedule 8 and shall be accompanied by the following documents and information, where applicable - (a) full mini-grid licensee tariff application full template specefied in Schedule 8: " Tariff approval application form"; (b) filled in tariff calculation tool provided or approved by the Commission; (c) supporting documents describing and justifying the inputs into the tariff calculation tool as specified by the (d) previous conditions imposed on a licensee by the Commission in a decision; (e) schedule of current and proposed tariffsfor all consumer classes and service territories supported by a detailed explanatory statement clearly indicating how each tariff (both current and proposed) was calculated, the data required to make those calculations and how that data was obtained; (f) schedule showing current average bills, tariffs, and other charges for each consumer class that would result if the application was approved as submitted; (g) date upon which the proposed adjustment is to take effect accompanied by a tariff history that includes all of the adjustments of the licensees tariffs (both proposed and accepted) covering a three-year period prior to the proposed adjustment is to take effect; (h) audited financial statements including - (i) the opinion of the auditor, covering the past financial year prior to the date of the application; (ii) the regulatory asset base, the operation and maintenance expenses, the depreciation expenses, reserves for repairs and replacement, and taxes applicable to the licensee; (i) a projected financial statement with the first tariff application where audited financial statement is not applicable; 48 49 Tariff application documents and information for full mini-grid. (j) standardised chart of accounts for the accounting activities of full mini-grid licensees prescribed by the Commission, to reflect that costs incurred are prudently incurred and at a reasonable level of efficiency; (k) schedule stating the licensees´ revenue requirement for the past full financial year based on the standard tariff determination methodology for computing the revenue requirement; (l) the financial implications to the licensee if the requested changes in tariffs are not approved; (m) statement explaining how the proposed adjustment of the current tariff will impact the consumers; (n) a report on the period since the last tariff approval covering the relevant operation data as set out in Schedule 9: (o) any other information deemed appropriate by the Commission or the mini-grid licensee. 60. (1) The Commission shall use as the standard tariff determination a cost of service approach using a revenue requirement methodology in determining tariffs for full mini-grid licensees on a yearly or multi-year basis. (2) The revenue requirement methodology shall be based on costs related to private financing of the regulated services (power generation, distribution and sales activities), the sum of their operation costs, depreciation on capital and capitalised cost, reserves for repair and replacements, taxes, a reasonable return on the privately financed regulatory asset base that adequately reflects the risks faced by the mini-grid operator plus a performance related profit margin dependent on the quantity of electricity sold and grant financed activity or assets shall not be included in calculating the revenue requirement. (3) The tariff for full mini-grid licensees shall be calculated based on historic data from the last year and shall be applied in the regulatory year (except for the first tariff application for which projections based on reasonable assumptions shall be used) and the revenue requirement shall be determined by the following formula - 50 51 Tariff setting methodology for full mini- RR = O&M + D + T + (r x RAB) + (PRPM * E) Whereas: RR means revenue requirement for the regulatory year O& M means operation and maintenance expenses D means depreciation expense for the year (of all regulated capital and capitalised assets) T means taxes, duties and charges, including non-recoverable GST paid r means rate of return RAB means regulatory asset base (residual value of the capital and capitalised assets, including capitalised development cost) PRPM Performance Related Profit Margin (SLL/kWh) reflecting grant financing E Electricity sold (kWh) (4) For the purpose of this Regulation - (a) operation and maintenance expenses include all expenditure just and reasonably incurred for the provision of regulated activity, including but not limited to local operation cost, corporate overhead costs, special reserve for repair and replacement, fees and levies for public permits and licences, auditing costs and projections of costs instead of historical cost approved by the Commission in special circumstances,\; (b) depreciation expense of the allowed revenue requirement shall be computed on the historical cost of the regulatory asset base using an annuity method on the depreciation and return over the respective useful life of the asset or project and project development cost shall be capitalised and amortised over the licence period; (c) subject to the Income Tax Act, 2000 (Act No. 8 of 2000) any taxes including corporate taxes paid or to be paid by licensees may be considered in the determination of revenue requirement; (d) The revenue requirement shall be used to determine the net tariffs and Goods and Services Tax on electricity sales shall be charged to the consumers additionally to the net tariff, collected by the full mini-grid licensee as stipulated in the Goods and Service Tax Act, 2009, upon approval of the Commission, and the outstanding input Goods and Services Tax amount at the end of each financial year may be included in the regulatory asset base. (e) the regulatory asset base shall be determined including all privately financed used and useful assets in the provision of regulated activity at fair value (based on the cost approach, e.g. depreciated replacement cost). The regulatory asset base shall be determined using the following fomula- 52 53 methodology RAB=((?RAB?_(t-1)+ ?RAB?_(t-2)))/2 whereas: RABt-1 means Regulatory Asset Base at the end of year t-1 (last year) RABt-2 means regulatory asset base at the beginning of year t-1 (last year) (f) The regulatory Asset base at the end of year t-1 shall be determined by the following formula: RAB?_(t-1)= ?RAB?_(t-2)+?CAPEX?_(t-1)- S_(t-1)- D_(t- 1) whereas: RABt-1 means Regulatory Asset Base at the end of year t-1 (last year) RABt-2 means regulatory asset base at the beginning of year t-1 (last year) CAPEXt-1 Means privately financed capital additions (tangible or intangible assets) during year t-1 St-1 Means asset disposal during year t-1, and Dt-1 Means depreciation in the year t-1 (f) The financing structure (private finance, grant financing, etc.) for the regulated year (the year in which the tariff is valid) shall be considered (not the historic year, which is the basis for the cost data). In case public grants or subsidies are provided these need to be reduced from the respective cost position in the regulated year if known at the time of tariff approval for the respective year, if not known at that time they shall be considered in the next year; (g) The licensees´ proposed rate of return on its own invested capital shall be supported by a cost of capital analysis and the licensee shall propose and justify a capital structure which will include a discussion on cost of debt and equity for the licensee. The rate of return proposed needs to be confirmed by the (h) The base rate of return considered by the Commission shall be 5% more than the average of the last 5 treasury bills from Bank of Sierra-Leone; (i) The licensees' proposed performance related profit margin on the electricity sold shall be defined by the Commission dependent on the public (non-private) financing contribution for the procurement of the assets. Only full mini-grid licences with more than 50% grant or donation for capital investment are eligible for the performance related profit margin, and the higher the grant contribution the higher the performance related profit margin per unit of electricity sold. (5) All calculations shall be made in Leones and where currency conversions are necessary the mid-range exchange rate from the Bank of Sierra Leone shall be applied. 61. (1) The general tariff terms shall be as follows - (a) a tariff shall be calculated based on historic data for the last year and shall be applied in the current year; 54 55 Tariff terms andconditions for full mini- (b) a tariff shall remain in effect until it is superseded by a new decision; (c) a new tariff shall only come into effect 12 months after the effective date of the last tariff approved and a licensee may petition the Commission for a waiver of this provision if a licensee can show that a material undue hardship would occur in the absence of such a revision; (d) The tariffs approved by the Commission may be lowered or its structure may be changed during the effective period after request from the full mini-grid licensee and a special approval from the Commission, in case it can be reasonably argued that the changes will be beneficial to the consumers. (2) Special tariff terms and conditions will be approved by the Commission. Special tariff terms and conditions will state - (a) the effective date; (b) the normal duration of validity of the tariff approved; (c) the mini-grid sites for which the tariff is approved; (d) the approved tariff structure; and (e) the approved tariff for each consumer group. 62. (1) A licensee shall be entitled to enter into commercial agreements with third parties that are required to conduct the licenced activity. (2) A licensee shall submit a copy of each Commercial agreement entered into for the purpose of conducting the licenced activity to the Commission for information purposes upon request by the Commission within 2 weeks. (3) A licensee shall submit a copy of each commercial agreement entered into before the approval of tariff and the Commission shall check the prudency to be considered for the tariff. 63. (1) A licensee shall procure such goods and services as may from time to time be necessary to enable the licensee to discharge its obligations under the Act and a mini-grid licence. (2) In procuring goods and services under subregulation (1), a full mini-grid licensee shall procure goods and services from the most economical sources available to it without compromising on quality, having regard to the quantity and nature of the assets and services required to enable it to discharge its obligations under the Act and these Regulations. (3) This condition shall not extend to prescribing the manner or circumstances in which a licensee shall at any time call for the delivery of goods and services under any contract or arrangement entered into under sub- regulation (1). (4) In contracting or arranging for the provision of goods and services required to enable the licensee to carry out the licenced business, a full mini-grid licensee shall procure local goods and services as far as practicable and employ best corporate practices in the procurement process in-line with the applicable law. 64. (1) A full mini-grid licensee shall prepare and maintain a register of all relevant assets comprising the generation, distribution and sales system in such form as specified by the Commission from time to time and shall submit to register to the Commission not later than 6 months after the full mini-grid licence comes into force or any later date the Commission may specify and thereafter shall provide the Commission with such a register at least every 2 years at the same time as the reporting or at the time of tariff approval. 56 57 Other commercial arrangements with nonconsumer third-parties. Procurement of goods and services. Asset use and dispos-al. (2) A licensee may be entitled, subject to prior notification to the Commission, to utilise its licenced assets as a means of facilitating financing of its investment requirements, including collateral for debt financing, sale and lease back, securitisation receivables, and in all cases subject to the condition that the licensee will inform the Commission about such arrangements prior to execution of the relevant agreement or agreements. 65. (1) Where a person authorised by the Commission to inspect the facilities or audit the accounts of the full mini-grid licensee proves that the actual costs incurred or the actual revenue earned by the full mini-grid licensee deviates from the costs and revenues stated for the tariff definition with the Commission at the point of application for the licence - (a) the input parameters for tariff calculation approved by the Commission shall be adjusted to the actual values; (b) the tariffs as well as the calculation of the depreciated value of privately financed minigrid assets may be adjusted and approved by the Commission accordingly. PART IX - MISCELLANEOUS 66. Unless otherwise unavailable, operators, licensees and owners shall first source where possible, resources and labour locally in compliance with the Sierra Leone Local Content Agency Act, 2016 ( Act No. 3 of 2016). 67. The Commission shall not grant a full mini-grid licence for a site, where an exclusivity agreement issued by a contracting authority for another mini-grid developer has been executed and remains in effect in respect of that site. 68. (1) Where the Commission, on the basis of material evidence in its possession is satisfied that the mini-grid licensee is contravening, or is likely to contravene the terms and conditions of the licence, it shall serve an order to the mini-grid licensee to do, or not to do, such things as are specified in the order for the purpose of rectifying or avoiding any contravention or threatened contravention of any term or condition of the licence. (2) An order under sub-regulation (1), shall specify the period within which the mini-grid licensee shall rectify or avoid the contravention or threatened contravention of any term or condition of the licence. (3) Where a mini-grid licensee, upon expiry of the period specified in the order under sub-regulation (1), fails to comply with the order, the Commission shall subject to sections 62 and 63 of the Act and these Regulations enforce the order. 69. Unless otherwise stated in these Regulations, all consumer complaints shall be resolved in accordance with complaints procedure as set out in Schedule 13. 70. Disputes between parties in connection with this Regulation shall be resolved in accordance with dispute resolution mechanism as set out in Schedule 14 71. All notices and other communications given or made under this Regulation shall be in writing and addressed to the Commission. 72. (1) Subject to section 64 of the Act, the Commission, its staff, public officers seconded or otherwise appointed, consultants and advisers appointed by the Commission shall treat all disclosed information or material obtained under these Regulations as confidential. (2) Sub-regulation (1) shall not apply to information required for - (a) the fulfilment of the functions of the 58 59 Audit of accounts for tariff adjustment for full mini- grid licensees. Local content. Exclusivity period and site reservation. Procedure for securing compliance with minigrid licence. Complaints procedure. Dispute resolution. Notice and correspondence. Confidentiality. (b) the creation of benchmarks; (c) necessary consultations; or (d) the approval of rates. 73. (1) A person who contravenes any provision in these Regulations for which no specific penalty is prescribed shall be liable to a fine not exceeding 10 million Leones. (2) A licensee who employs an agent, clerk, servant or other person, shall be answerable and liable for any acts or omissions of such persons in so far as the actions or omissions concern the mini-grid activity. (3) A person who is in continuous breach of these Regulations shall be liable to a fine not exceeding 50 million Leones.