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[Legal Notice No. 108]

THE ELECTRICITY ACT

(Cap.128)

THE ELECTRICITY (TARIFF) (AUTOMATIC BASE TARIFF AND FUEL TARIFF ADJUST1\1ENTS) REGULATIONS 2005

In exercise of the powers conferred upon the Minister by sections 21 and 55 of the Electricity Act, the Minister on the recommendation of the Authority hereby makes the following regulations -

1. These   Regulations   may   be  cited   as   the Electricity  (Tariff) (Automatic Base Tariff and Fuel Tariff Adjustments)  Regulations  2005.

2. The Electricity (Tariff) (Automatic Base Tariff and Fuel Price Adjustment)  Regulations*  are hereby revoked.

3. In these Regulations, unless the context otherwise requires:-

"the Act" means  the Electricity Act;

"Base Tariff' for a customer category. means the Base Tariff for that customer category as calculated in accordance with Schedule  l;

''Central Bank of the Solomon Islands" means the Central Bankestablished  under the Central  Bank of Solomon Islands Act;              

"Fuel" means distillate (ADO) liquefied natural gas, coconut oil, palm oil or any ?ther fuel used for purposes of generating electricity;

"Fuel Tariff' means the fuel tariff as calculated in accordance with Schedule 2; and

"Honiara Retail Price Index" means the index of changes in the Retail Price Index for Honiara compiled by the Statistician of the Solomon Islands Government and published quarterly by the Central Bank of Solomon Islands.

4. These Regulations  shall apply  throughout  Solomon Islands.

5. The Base Tariff for each customer category shall be calculated in the manner specified in Schedule 1.

6.The Fuel Tariff shall be calculated in the manner specified in Schedule 2.

SCHEDULE 1

Base Tariff

On 1 October 2005 and on l October every five year  thereafter,  the Base Tariff for each customer category shall be adjusted by adding the Fuel Tariff that applies on 30 September of that year to the current Base Tariff for  that  customer  category.

Asat1 January 2006 and l January ineach year thereafter, the Base Tariff foreach customer category shall be calculated as follows:-

BT x  [{(RPI,  I RPit-1-I.)x0.90} +I.}

where:

BT is the Base Tariff for the customer category immediately prior to the relevant  1 January;

yean is the calendar year immediately prior to the relevant. I January; and RPLt is the Honiara Retail Price Index for AH Items for the 12 months period ending on 30 September in yearn.

The Base Tariff for a customer category that applies from time to time shall be shown as a separate items on all bills issued to co!lsumers who come within that customer category.

SCHEDULE 2

Fuel Tariff

For the purposes of this Schedule:-

"quarter" means a period of three months ending on 31 March, 30 June, 30 September or 31 December;

"quarterly average fuel price per litre in respect of a quarter" means the volume weighted average price for fuel at each location where the authority uses fuel to generate electricity, as calculated by the authority for the immediately preceding quarter as follows:-

Quarterly average fuel price ; (Monthly average fuel pricet+ Monthly average fuel pdcet-+ Monthly average fuel price1-2)/3.

where:

month t is the month immediately prior to the current month and t-1,   and t-2. refer to the two months prior to that in the previous quarter

Monthly average fuel pricet-3= total fuel purchases in Solomon Island Dollarsi-3/total litres purchasedt-3.

Monthly average fuel price1.2= total fuel, purchases in Solomon Island  Dollars1-2'total litres purchased1-2.

Monthly average fuel pricei-1;:: total fuel purchases in  Solomon Island  D01lars1-J/total litres purchased1-1;

"litres per  kWh sold  in respect  of a calendar  year" myans the  amount calculated as follows:-                                                                                        

QF/QES (when if is less than or equal to 8%)

or

QF/(QEG/1.08) (when if is greater than 8%) where:

QR  is  the  volume  of  fuel  used  by  the  authotity    generate electricityduring the immediately preceding calendar year as detemrined by the authority (expressed in litres);

QFS is the electricity sold by the authority to consumers during the immediately  preceding calendar year as detemtlned  by the authority  (expressed  in kWh;

If is the average network losses for that immediately preceding calendar year as determined  by the Authority  which shall  be calculated by the Authority as:-