ENERGY COMMISSION ACT - 1997 (ACT 541)
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(1) There is established by this Act an Energy Commission, in this Act referred to as "the Commission".
(2) The Commission shall be a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name.
(3) The Commission may for the discharge of its functions under this Act acquire and hold any movable or immovable property, dispose of the property and enter into any contract or other transaction.
(4) Where there is any hindrance to the acquisition of any property under subsection (3) of this section, the property may be acquired for the Commission under the State Property and Contracts Act, 1960 (C.A. 6) or the State Lands Act, 1962 (Act 125).
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(1) The object of the Commission is to regulate and manage the utilisation of energy resources in Ghana and co-ordinate policies in relation to them.
(2) Without prejudice to subsection (1) of this section, the Commission shall.
(a) recommend national policies for the development and utilisation of indigenous energy resources;
(b) advise the Minister on national policies for the efficient, economical, and safe supply of electricity, natural gas, and petroleum products having due regard to the national economy;
(c) prepare, review and update periodically indicative national plans to ensure that all reasonable demands for energy are met;
(d) secure a comprehensive data base for national decision making on the extent of development and utilisation of energy resources available to the nation;
(e) receive and assess applications, and grant licences under this Act to public utilities for the transmission, wholesale supply, distribution, and sale of electricity and natural gas;
(f) establish and enforce, in consultation with the Public Utilities Regulatory Commission, standards of performance for public utilities engaged in the transmission, wholesale supply, distribution and sale of electricity and natural gas;
(g) promote and ensure uniform rules of practice for the transmission, wholesale supply, distribution and sale of electricity and natural gas;
(h) receive and assess applications, and grant licences under this Act for the refining, storage, bulk transportation, marketing and sale of petroleum products;
(i) establish and enforce standards of performance for bodies engaged in the supply, marketing, and sale of petroleum products;
(j) promote competition in the supply, marketing and sale of petroleum products;
(k) maintain a register of public utilities, petroleum product marketing companies, retail stations and reseller outlets licensed under this Act in the country;
(l) pursue and ensure strict compliance with this Act and regulations made under this Act; and
(m) perform any other function assigned to it under this Act or any other enactment.
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(1) The Commission shall consist of -
(a) a Chairman;
(b) a representative of the National Development Planning Commission;
(c) the Executive Secretary of the Commission appointed under section 45 of the Act; and
(d) four other persons with knowledge in matters relevant to the functions of the Commission.
(2) The members of the Commission shall be appointed by the President, acting in consultation with the Council of State.
(3) The President shall in making appointments under this section have regard to the knowledge, expertise and experience of the persons and in particular their knowledge in matters relevant to the functions of the Commission.
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(1) A member of the Commission other than the Executive Secretary shall be appointed for a period not exceeding five years and shall on the expiration of that period be eligible for re-appointment; except that of the members first appointed, the Chairman and two other members shall hold office for a period of five years, two for a period of four years and one for a period of three years.
(2) A member of the Commission may at any time by notice in writing to the President resign his office.
(3) A member who is absent from four consecutive meetings of the Commission without sufficient cause shall cease to be a member.
(4) The Chairman of the Commission shall notify the President of vacancies which occur in the membership of the Commission within two months of the occurrence of the vacancy.
(5) The Chairman or a member of the Commission may be removed from office by the President for inability to perform the functions of his office, for stated misbehaviour or for any other just cause.
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(1) The Commission shall meet for the despatch of business at such times and in such places as the Chairman may determine but shall meet at least once every two months.
(2) The Chairman shall upon the request of not less than three members convene a special meeting of the Commission.
(3) The quorum at a meeting of the Commission shall consist of five members and shall include at least one member of the Commission appointed under section 4(1) (d).
(4) Every meeting of the Commission shall be presided over by the Chairman and in his absence by a member of the Commission elected by the members present from among their number.
(5) Matters before the Commission for determination shall be decided by a majority of the members present and voting.
(6) The Chairman or the person presiding at a meeting of the Commission shall in the event of equality of votes have a second or casting vote.
(7) The Commission may co-opt any person to act as an adviser at its meetings but no co-opted person is entitled to vote at the meeting.
(8) Except as otherwise provided in this section, the Commission shall regulate the procedure for its meetings.
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(1) A member of the Commission who has any interest in a contract proposed to be made with the Commission or any matter for discussion by the Commission shall disclose the nature of his interest to the Commission and shall, unless the meeting otherwise directs, be disqualified from participating in any deliberations decision on that contract or matter and shall, in any case be disqualified from voting on any decision on that contract or matter.
(2) A member who fails to disclose his interest under section (1) of this section shall be removed from the Commission.
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Except expressly exempted under this Act, no person shall engage in any business or any commercial activity for-
(a) the transmission, wholesale supply, distribution or sale of electricity or natural gas; or
(b) the refining, storage, bulk transportation, marketing or sale of petroleum products unless he is authorised to do so by a licence granted under this Act.
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A licence under this Act may only be granted to-
(a) a citizen of Ghana; or
(b) a body corporate registered under the Companies Code, 1963 (Act 179)or under any other law of Ghana; or
(c) a partnership registered under the Incorporated Private Partnerships Act, 1962 (Act 152).
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Subject to this Act, an application under section 13 shall be granted by the Commission unless there are compelling reasons founded on technical data, national security, public safety or other reasonable justification which shall be communicated to the applicant.
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(1) A licence granted by the Commission shall be subject to such conditions as may be specified in the licence having regard to the functions of the Commission and the nature of licence required.
(2) Without prejudice to subsection (1) of this section, a licence granted under this Act may include conditions requiring the licensee -
(a) where applicable, to interconnect its facilities and installations to any transmission systems to which the licence relates; and
(b) to provide to the Commission, in such manner and at such times as may be reasonably required, such documents, accounts, estimates, returns or other information as the Commission may require for the purpose of exercising the functions conferred on it under this Act.
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(1) The Commission may, subject to this Act and any regulation made under it, modify any licence granted under this Act if the modification is permissible under the terms of the licence or is required in the public interest.
(2) No modifications shall be made under subsection (1) of this section unless the Commission has given at least 60 working days written notice-
(a) stating that the Commission proposes to make the modifications; and
(b) setting out the effect of the modifications.
(3) The Commission shall in all cases consider any representations or objections that are made to it before the modifications are made.
(4) A notice under subsection (2) shall be given by publication in such manner as the Commission considers appropriate for the purposes of bringing the matters to which the notice relate to the attention of persons likely to be affected by them and by sending a copy of the notice to the licensee concerned.
(5) Any expense incurred or damage caused as a result of modification to a licence made under subsection (1) of this section shall be considered as part of the capital expenditure of the licensee.
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(1) The Commission may, where it is satisfied that a licensee is not complying with or has not complied with any of the conditions of his licence, suspend or cancel the licence.
(2) No suspension or cancellation shall be made under subsection (1) of this section unless the Commission has given the licensee concerned a written notice specifying in it the cause of dissatisfaction of the Commission and giving directions for rectification of the breach and the action proposed to be taken by the Commission in the event of non-compliance with the notice.
(3) The Commission shall not suspend or cancel a licence granted under this Act without first giving the licensee an opportunity of being heard and shall where considered appropriate, give him such period as the Commission considers reasonable to comply with the directions of the Commission.
(4) In determining whether it is necessary to suspend or cancel a licence granted under this Act, the Commission shall consider the extent to which any person is likely to sustain loss or damage as a result of the suspension or cancellation.
(5) A licence which is not utilised within one year from the date of its grant may be cancelled by the Commission after notice of not less than 30 days has been served on the licensee.
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(1) A person aggrieved by the refusal of the Commission to grant or renew his licence under this Act or by any modification, suspension or cancellation of a licence granted under this Act may lodge a complaint with the Minister who shall within 30 days of receipt of the complaint make a decision on it.
(2) A person dissatisfied with the decision of the Minister or where the 30 days expires without such a decision may pursue the matter in the courts.
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The Commission shall publish in the Gazette and in such other newspapers of national circulation as the Commission may determine, notice of every licence, modification, suspension or cancellation of licence made under this Act; except that publication of a modification, suspension or cancellation of a licence shall not be made where an objection, a complaint or an action has been lodged or initiated with the Commission, the Minister or the courts.
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(1) A Transmission Licence shall be subject to such conditions as the Commission shall determine and shall include conditions -
(a) for the safe, reliable, economic dispatch and operation of the national interconnected systems for the transmission of electricity and natural gas without discrimination to any wholesale supplier of electricity or natural gas licensed under this Act; and
(b) that tariffs to be charged by the licensee for its services shall be subject to the approval of the Public Utilities Regulatory Commission.
(2) A Transmission Utility shall within 6 months of being granted a Transmission Licence establish and make available to the public at its offices -
(a) the procedure for obtaining and terminating transmission and interconnection services for electricity or natural gas;
(b) the method of response to request for its services; and
(c) maps and diagrams of its electricity or natural gas transmission facilities in the country;
(3) A Transmission Utility shall provide in respect of its capital expenditure programme such information as the Commission may request.
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(1) The Commission may on an application by a public utility in such form as the Commission shall determine grant the public utility a wholesale supply licence to operate facilities and installations for the wholesale supply of electricity or natural gas.
(2) A public utility licensed under subsection (1) shall be authorised by the licence to produce electricity or natural gas for supply to-
(a) distribution companies; and
(b) bulk customers.
(3) A wholesale supply licence shall not be granted under this section unless the Commission is satisfied that the grant will promote the safe, reliable and economic operation of the interconnected transmission systems in the country.
(4) A wholesale supply licence may be granted subject to such other conditions as shall be specified in relation to it and shall include-
(a) the location of the wholesale supply facilities or stations;
(b) the duration of the licence; and
(c) a condition that charges for its services to distribution companies shall be subject to the approval of the Public Utilities Regulatory Commission.
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(1) The Commission may on an application by a public utility, grant to the public utility a licence to -
(a) distribute and sell electricity; or
(b) distribute and sell natural gas without discrimination in such areas or zones as shall be designated and specified in the licence.
(2) A licence granted under subsection (1) shall be on such conditions as the Commission shall determine and shall include a condition that the rates or charges for its services shall be subject to the approval of the Public Utilities Regulatory Commission.
(3) The Commission shall in granting a licence under subsection (1) take into account-
(a) the demand and supply of electricity or natural gas in the designated area or zone;
(b) the capability to interconnect distribution facilities or installations with transmission systems in the designated area or zone; and
(c) the ability to fulfil the obligation to provide electricity or natural gas within the designated area or zone.
(4) A public utility licensed under subsection (1) to distribute electricity or natural gas shall make available to the public for inspection at its offices diagrams and maps of the electricity or gas facilities authorised by the Commission to be operated in the designated area or zone relevant to its licence.
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(1) The Commission in consultation with the Public Utilities Regulatory Commission shall by legislative instrument prescribe standards of performance for the supply, distribution and sale of electricity or natural gas to consumers by licensed public utilities.
(2) The standards of performance shall -
(a) in respect of electricity include matters relating to -
(i) voltage stability;
(ii) maximum number of scheduled and unscheduled outages;
(iii) number and duration of load shedding periods; and
(iv) metering;
(b) in respect of natural gas include matters relating to -
(i) gas pressure;
(ii) number of scheduled and unscheduled interruptions in supply;
(iii) gas quality; and
(iv) metering.
(3) Where a licensee fails to meet any required standard of performance, it may in addition to any penalty provided under this Act or any other enactment be required to pay such compensation as the Commission may determine to any person adversely affected as a result of the failure.
(4) The requirement for payment of compensation under this section -
(a) does not limit the right to any other remedy at law which may available to the complainant; and
(b) does not preclude the Commission from taking any other measure that the Commission has a right to impose in respect of the act or omission that constitutes the failure.
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(1) Without prejudice to section 9 of this Act there is hereby established technical committee to be known as the Electricity and Natural Gas Technical Committee (hereafter referred to as "the Technical Committee").
(2) The Technical Committee shall oversee the development, implementation and monitoring of the rules provided for under section 28.
(3) The Technical Committee shall be composed of such members as the Commission shall determine.
(4) The Technical Committee shall have sub-committees with responsibility for electricity and gas respectively.
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(1) The Commission may on an application grant to the applicant a licence operate as a bulk transporter of petroleum products-
(a) through pipeline systems;
(b) by barges;
(c) by rail tanker wagons;
(d) by road vehicle; or
(e) by any other means the Commission may determine.
(2) A licence under subsection (1) shall be subject to such conditions as the Commission shall determine and shall include a condition that -
(a) the licensee enters into an agreement to provide services to its customers without discrimination; and
(b) the charges for the bulk transportation of petroleum products under subsection (1) (a),
(b) and (c) shall be subject to the approval of the Public Utilities Regulatory Commission.
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The Commission shall by legislative instrument prescribe rules of technical and operational practice for persons licensed under this Act to engage in refining, storage, bulk transportation, marketing and sale of petroleum products.
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(1) No person, other than a person authorised under this Act shall -
(a) sell or offer for sale any petroleum products; or
(b) be in possession of any petroleum products in quantities unreasonably in excess of his immediate requirement; or
(c) receive any petroleum products for sale.
(2) Subsection (1) does not apply to petty trading in kerosine.
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(1) There is established by this Act a fund to be known as the Energy Fund referred to in this Act as "the Fund"
(2) The sources of money for the Fund shall be -
(a) such proportion of government levy on petroleum products, electricity and natural gas as may be determined by the Cabinet and approved by Parliament;
(b) money that accrues to the Commission in the performance of its functions; and
(c) grants.
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Monies of the Fund shall be applied as follows-
(a) promotion of energy efficiency and productive uses of electricity, natural gas and petroleum products;
(b) promotion of projects for the development and utilisation of renewable energy resources, including solar energy;
(c) human resource development in the energy sector; and
(d) such other relevant purposes as may be determined by the Commission.
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(1) The Commission shall have an Executive Secretary who shall be appointed by the President acting in accordance with the advice of the Commission given in consultation with the Public Services Commission.
(2) The Executive Secretary shall hold office upon such terms and conditions as shall be specified in his letter of appointment.
(3) Subject to such general directives as the Commission may give, the Executive Secretary shall be responsible for the day-to-day administration of the Commission and ensure the implementation of the decisions of the Commission.
(4) The Executive Secretary shall be responsible for the organisation of the Commission.
(5) The Executive Secretary may delegate the day-to-day administration of the Commission to any officer but the Executive Secretary shall not be relieved from ultimate responsibility for the discharge of any delegated function.
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(1) The Commission shall keep books of accounts and proper records in relation to them, and the account books and records of the Commission shall be in a form approved by the Auditor-General.
(2) The books of accounts of the Commission shall, within three months after the end of each financial year, be audited by the Auditor-General or by an auditor authorised by him.
(3) The financial year of the Commission shall be the same as the financial year of the Government.
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(1) The Commissioner shall keep a register in such form as the Commission may determine and shall record in it-
(a) licences issued under this Act and the relevant terms and conditions;
(b) suspensions and cancellation of licences; and
(c) such other information relating to public utilities and persons licensed under this Act to sell petroleum products as the Commission considers appropriate.
(2) Where it appears to the Commission that the entry of any condition in the register would be contrary to the public interest or the commercial interest of any person, the Commission may decide not to enter that condition in the register.
(3) The register shall be open for public inspection during such hours and subject to the payment of such fee as may be determined by the Commission.
(4) Any person may, on payment of a fee determined by the Commission, request the Commission to supply him an extract from any part of the register.
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(1) Any person who-
(a) installs or operates any facility for the transmission, wholesale supply, distribution or sale of electricity or natural gas without a licence from the Commission as provided for under this Act; or
(b) installs or operates any facility for the refining, storage, bulk transportation, marketing or sale of petroleum products, without a licence granted by the Commission as provided for under this Act; or
(c) unlawfully destroys or damages any equipment, installations or facilities for the supply, transmission, distribution or sale of electricity or natural gas; or
(d) unlawfully destroys or damages any equipment, installations or facilities for the refining, storage, bulk transportation, marketing or sale of petroleum products; or
(e) fails to comply with any standard of performance prescribed by the Commission, commits an offence and is liable on summary conviction to a fine of not less than c5 million or to imprisonment for a term not exceeding one year or to both on first conviction; and to a fine of not less than c10 million or to imprisonment not exceeding two years or to both on subsequent conviction.
(2) Where an offence created under this Act or any regulation made under it is committed by a body corporate or by a member of a partnership or other firm, every director or officer of that body corporate or any member of the partnership or other person concerned with the management of the firm shall also be guilty of the offence and shall on conviction, be liable to a fine of not more than c10 million for the offence and shall in addition be liable to payment of compensation for any damage resulting from the breach unless the accused proves to the satisfaction of the court that
(a) he exercised due diligence to secure compliance with the provisions of this Act; and
(b) the offence was committed without his knowledge, consent or connivance.
(3) Where an offence is committed under subsection (1) (a) or (b) of this section, the court which convicts the offender may order the forfeiture of any equipment, installation or facilities used in the commission of the offence to the State.
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(1) The Minister on the advice of the Commission may by legislative instrument make regulations-
(a) in respect of electricity and natural gas-
(i) on the conservation of electricity or natural gas;
(ii) for expansion, planning, safety criteria, reliability and cost effectiveness of the interconnected transmission systems;
(iii) on minimum standards and procedures for construction, operation and maintenance of facilities and installations;
(iv) for the protection of mains, pipes, electrical or natural gas installations and services;
(v) for the protection of life and property and general safety of the public in respect of natural gas and electricity services;
(vi) for the operation of the electricity transmission utility; and
(vii) for the operation of the gas transmission utility;
(b) in respect of petroleum products-
(i) for controlling the importation, exportation, landing, loading, unloading and transportation of petroleum products;
(ii) for the storage, handling and sale of petroleum products and providing for licensing of places in which petroleum products are stored;
(iii) for regulating the handling of petroleum products in the fuelling of aircraft;
(iv) for preserving the quality and purity of petroleum products; and
(c) generally
(i) prescribing fire precautions and other safety measures to be observed;
(ii) on minimum reserve margins to satisfy demand; and
(iii) for the implementation of the provisions of this Act.
(2) Notwithstanding any provision in the Statutory Instrument Act, 1959 (No. 52) to the contrary, legislative instrument made under subsection (1) may impose a penalty of a fine not exceeding c20 million or imprisonment for a term not exceeding 5 years or both for any offence provided in the instrument.
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(1) The National Energy Board established under the National Energy Board Law, 1983 (P.N.D.C.L. 62) is hereby dissolved.
(2) The assets, rights, obligations and liabilities of the National Energy Board are hereby transferred to and vested in the Commission.
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(1) The following enactments are hereby repealed -
Petroleum Decree, 1973 (N.R.C.D. 187);
Petroleum Decree, 1973 (Amendment) Act, 1980 (Act 420);
Petroleum Decree (Amendment) (No. 2) Act, 1980 (Act 427)
National Energy Board Law, 1983 (P.N.D.C.L. 62);
Excess Energy Consumption (Surcharges) Law, 1984 (P.N.D.C.L. 87);
National Energy Board (Amendment) Law, 1987 (P.N.D.C.L. 190);
Electricity Corporation of Ghana Decree, 1967 (N.L .C.D. 125);
Electricity Corporation of Ghana (Amendment) Law, 1987 (P.N.D.C.L. 172); and
Electricity Corporation of Ghana (Amendment) law, 1991 (P.N.D.C.L. 250).
(2) Notwithstanding the repeal of the enactments specified in subsection (1) the Petroleum Regulations, 1959 (L.N. 206), the Safety (Petroleum Rules), 1959 .(L.N. 207) and the Electricity Corporation of Ghana (Electric Power) Regulations, 1988 (L.I. 1366) shall continue in force until revoked or otherwise dealt with under this Act.
(3) Notwithstanding the repeal of the National Energy Board Law, 1983 (P.N.D.C.L. 62) any appointment made under it and valid on the coming into force of this Act shall remain valid as if made under the corresponding provision of this Act until terminated or otherwise dealt with under this Act.
(4) Any person who on the date of the coming into force of this Act holds a valid licence for the supply of electricity, natural gas or petroleum products or by law operates any service for the provision of electricity, natural gas or petroleum products shall, where he intends to continue to operate the service, apply within 6 months of the coming into force of this Act for the appropriate licence under this Act; and shall unless authorised under this Act cease the operations after the expiry of the 6 months period.
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