23. Modification or revocation of licences, and enforcement orders

If the Regulator is satisfied that a generation, transmission or distribution licensee is contravening or is likely to contravene any condition of a licence issued to such licensee or any statutory requirement, the Regulator shall make an enforcement order containing such provision as it may deem necessary to secure compliance with such condition or requirement by the licensee.

An enforcement order—

shall require the licensee to whom it relates to do or desist from doing such things as are specified in the order;

shall be in force for such period as maybe specified in the order; and

may be revoked or modified at any time by the

Before making an enforcement order under subsection (4), the Regulator shall—

publish a notice in such manner as shall be prescribed for bringing the matter to the attention of persons likely to be affected by such enforcement order, stating that the Regulator is proposing to make such order; and

serve on the licensee a copy of the notice and a copy of the proposed order.

A notice referred to in paragraph (a) shall set out –

the relevant conditions of the licence or statutory requirements with which the proposed order is intended to secure compliance;

the acts or omissions which in the opinion of the

any other facts which in the opinion of the

the effects of the proposed order; and

the period, not being less than twenty-eight days from the date of the notice, within which the licensee may make representations or objections to the proposed order.

Before making an enforcement order under subsection (4), the Regulator shall consider any representations and objections made to it under paragraph (b).

The Regulator shall not make an enforcement order if the Regulator is satisfied that—

the licensee has agreed to take and is taking all such steps as the Regulator considers that the licensee should take to secure compliance with the condition or requirement in question; or

the contraventions or apprehended contraventions are trivial.

As soon as practicable after making an enforcement order, the Regulator shall—

serve a copy of the order on the licensee to whom the order relates; and

publish the order in such manner as shall be prescribed for bringing it to the attention of persons likely to be affected by it.

Before revoking an enforcement order, the Regulator shall—

publish a notice in such manner as shall be prescribed for bringing the proposed order of revocation to the attention of persons likely to be affected by it;

serve a copy of the proposed order of revocation on the licensee; and

consider any representations and objections made in response to the notice;

Every notice published under paragraph (f) shall –

state that the Regulator proposes to revoke the order specified in the notice and the effect of the revocation; and

specify a period of not later than twenty-eight days from the date of publication of the notice, within which representations or objections to the proposed order of revocation may be made to the

If after considering any representations and objections made in response to a notice published under paragraph (f), the Regulator decides not to revoke the enforcement order to which the notice relates, it shall give notice of its decision to the licensee and to the persons affected.

It shall be the duty of a licensee to whom an enforcement order relates to comply with such order.

A duty is also owed by the licensee to any person who may be affected by a contravention of the enforcement order and any such person who sustains any loss or damage as a result of such contravention, may institute an action against the licensee in a court of competent jurisdiction, for damages for such loss or damage.

In proceedings brought against a licensee under paragraph (b), it shall be a defence for the licensee to prove that the licensee took all reasonable steps and exercised all due diligence, to avoid contravening the enforcement order.

If a licensee to whom an enforcement order applies fails to comply with such enforcement order in whole or in part, such licensee commits an offence under this Act, and shall be liable on conviction after a summary trial before a

The Regulator shall in making an enforcement order be entitled to direct that compensation be paid by the licensee to whom the enforcement order relates, to any person affected by the contravention specified in such order.

The levies by way of fine and compensation which may be imposed under this section shall be in addition to and not in derogation of any other liability which the person guilty of non-compliance may incur.

The Regulator may apply to a court of competent jurisdiction for an injunction or other remedy to secure compliance with an enforcement order by a licensee, notwithstanding the fact that it has instituted a prosecution against such licensee for failure to comply with such enforcement order.

Where the Regulator is satisfied that a licensee who is –

subject to an enforcement order made by the

subject to an insolvency event, is not carrying on the activities that such licensee is authorised to carry on under the licence properly, and that the supply of electricity to consumers is not being or is likely to be given in an efficient, secure and a safe manner, the Regulator may, by Order published in the Gazette, vest the management and control of the whole or a part of the undertaking of the licensee in any other authority or person specified in the Order and such authority or person shall have all the powers necessary for carrying on such undertaking.

Any person or authority in whom the management and control of an undertaking is vested under paragraph (a), shall not be held liable for conduct amounting to a fraudulent preference under the Companies Act, No. 07 of 2007 on the ground that it is continuing to carry on the management and control of the licensee’s undertaking.

No Order shall be made under this section without giving the relevant licensee written notice of the proposed

During such period as an Order under this section is in force—

the licensee shall not be or continue to be voluntarily or compulsorily wound up without the consent of the Regulator;

no steps shall be taken by any person to enforce or execute a judgment or security over that licensee’s property, without ten days prior notice in writing to the Regulator; and

the licensee shall not exercise any of his rights under the licence in relation to the undertaking or part thereof.

In this section, “insolvency event” means—

the passing of a resolution for the winding up of a licensee, other than for the purposes of amalgamation or reconstruction;

a licensee entering into a compromise with the licensee’s creditors;

the suspension by the licensee, of payment of debts or the inability of the licensee to pay the licensee’s debts or the declaration of the licensee as bankrupt or insolvent; or

the filing of a petition for the winding up of the licensee.