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Amendment Act · As enacted

Electricity Supply (Amendment) Act 2015

Amends the Electricity Supply Act 1990

Official textFrom Laws of Malaysia Online, unchanged

s 1Short title, commencement and application

(1)

This Act may be cited as the Electricity Supply (Amendment)

Act 2015.

(2)

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette, and the Minister may appoint different dates for the coming into operation of this

Act in different parts of Malaysia.

(3)

This Act shall apply throughout Malaysia; however the

Minister may, by order, suspend the operation of the whole or any of the provisions of this Act in any State.

s 2General amendment

The Electricity Supply Act 1990 [Act 447], which is referred to as the “principal Act” in this Act, is amended by substituting for the words “shall be guilty of” wherever appearing the word

“commits”.

ELECTRICITY SUPPLY (AMENDMENT) ACT 2015

s 3Amendment of section 2

Section 2 of the principal Act is amended—

(a)

by inserting after the definition of “motor” the following definition:

‘ “power factor” means the ratio of active power to the apparent power;’;

(b)

by inserting after the definition of “electricity distribution network” the following definition:

‘ “electricity supply infrastructure” means the licensee’s—

(a)

generating station;

(b)

main supply lines and supply lines;

(c)

substations for converting, transforming or controlling electricity;

(d)

equipment for metering, monitoring or controlling electricity; and

(e)

any wires, equipment and passages including tunnels and cavities or others used for, or in connection with, the generation, transmission, distribution or supply of electricity;’;

(c)

by inserting after the definition of “reserved land” the following definition:

‘ “retail” means the activity of supplying and selling of electricity to end consumers;’;

(d)

in the definition of “equipment”—

(i)

by deleting the comma after the word

“energy”;

(ii)

by inserting after the word “energy” the words

“or communications”; and

Electricity Supply (Amendment)

(iii)

by inserting after the word “accessories” the words “, electrical product, consumer electrical equipment”;

(e)

by inserting after the definition of “consumer” the following definition:

‘ “consumer electrical equipment” means an appliance, product, wires, device, accessory or any part thereof, that uses low voltage electricity that—

(a)

is sold to the public; or

(b)

does not require special skill in its operation;’;

(f)

by inserting after the definition of “electrical product”

the following definition:

‘ “electrical work” means any work performed or carried out on an electrical installation and includes the installing, constructing, erecting or repairing, the altering of the structure, the replacing of any of its parts, the adding of any part to it or the carrying out of any work for the purposes of its maintenance, but does not include work in relation to—

(a)

the manufacturing of an electrical installation or the assembling in the course of, or in connection with, its manufacture for the purpose of producing a new article; or

(b)

the oiling, greasing, cleaning or painting of an electrical installation;’;

(g)

by inserting after the definition of “Chairman” the following definition:

‘ “Chief Executive Officer” means the Chief Executive

Officer of the Commission;’;

(h)

by inserting after the definition of “Commission” the following definition:

‘ “communications” has the meaning assigned to it under the Communications and Multimedia Act 1998

[Act 588];’;

(i)

by inserting after the definition of “power factor” the following definition:

‘ “power quality” means the characteristics of the electricity at a given point on an electrical system, evaluated against a set of reference technical parameters such as voltage and current magnitude, frequency or waveform;’;

(j)

by inserting after the definition of “retail” the following definition:

‘ “ring fence” means identifying and isolating the activities, assets, costs, revenues and service obligations of a System Operator or a Single Buyer from the licensee referred to in sections 22a and 22b respectively through accounting, financial or legal separation or other means as determined by the

Commission so as to ensure that the management of the System Operator or Single Buyer is capable of acting independently from activities under the licence of the licensee and to facilitate effective competition and enhance transparency in the operations of the power system;’;

(k)

by inserting after the definition of “management” the following definition:

‘ “meter” means any appliance, instrument, equipment or device used for the purpose of measuring and recording the amount of electrical energy or maximum demand or power factor or any combination;’;

(l)

by inserting after the definition of “ring fence” the following definition:

‘ “Single Buyer” means any person or a unit, department or division forming part of a licensee who is authorized under subsection 22b(1) responsible for the management of procurement of electricity and related services, which includes planning, scheduling, procuring and settlement, and any other function as may be prescribed;’;

Electricity Supply (Amendment)

(m)

by inserting after the definition of “system” the following definition:

‘ “System Operator” means any person or a unit, department or division forming part of a licensee who is authorized under subsection 22a(1) responsible for system security, operational planning, dispatch of generating units, real time operation and control of the power system and any other function as may be prescribed;’;

(n)

in the definition of “installation”, by inserting after the words “supply line” the words “, electricity supply infrastructure, domestic and non-domestic electrical installation”;

(o)

by inserting after the definition of “District Land

Administrator” the following definition:

‘ “electrical product” means any equipment, device or appliance other than consumer electrical equipment;’;

(p)

by inserting after the definition of “electricity” the following definition:

‘ “electricity distribution network” means a system or part of a system at nominal voltage below 66

kilovolts of electric lines or cables, substations and associated equipment and buildings for distributing electricity regardless of whether a generating plant is connected to such system;’;

(q)

by inserting after the definition of “electricity supply infrastructure” the following definition:

‘ “electricity transmission network” means a system or part of a system at nominal voltage of 66 kilovolts and above of main supply lines or cables, substations and associated equipment and building used for conveying electricity—

(a)

from a generating station to a substation;

(b)

from one generating station to another;

(c)

from one substation to another;

(d)

to or from any interconnection point; or

(e)

to the final consumer;’;

(r)

by inserting after the definition of “power quality” the following definition:

‘ “power system” means a combined system consisting of an electricity transmission network, electricity distribution network and generating stations connected to the electricity transmission network and includes part of such system;’;

(s)

by deleting the definition of “extra high voltage”; and

(t)

by deleting the definition of “high voltage”.

s 4Amendment of section 4

Section 4 of the principal Act is amended—

(a)

in paragraph (b), by inserting after the words “determination of” the words “supply and services standards,”;

(b)

in paragraph (d)—

(i)

by substituting for the words “to promote the interests of consumers of electricity supplied by licensees in respect of—” the words “to exercise regulatory function in respect of the consumers’ interests and the enforcement in respect of—”;

(ii)

in subparagraph (ii), by deleting the word “and”

at the end of the subparagraph;

(iii)

in subparagraph (iii), by inserting the word “and”

at the end of the subparagraph; and

(iv)

by inserting after subparagraph (iii) the following subparagraph:

“ (iv) the quality of electricity supply which includes reliability and power quality;”;

Electricity Supply (Amendment)

(c)

by inserting after paragraph (e) the following paragraph:

“(ea) to regulate the activities of the licensee so that all reasonable demands for electricity are satisfied;”;

(d)

in paragraph (f) in the English language text, by substituting for the word “secure” the word “ensure”;

(e)

by inserting after paragraph (g) the following paragraphs:

“(ga) to promote the establishment and maintenance of safe and efficient systems for electricity generation, transmission, distribution and supply to consumers and the continued improvement of safety requirements;

(gb)

to enforce standards for electrical installations and licensee’s electricity supply infrastructure, electrical products and consumer electrical equipment;”;

(f)

by substituting for paragraph (k) the following paragraph:

“ (k) to provide, where necessary, for the registration of any installation, person providing service relating to efficient use of electricity, private wiring unit, electrical contractor, electrical services contractor, electrical repair contractor, manufacturer and importer, training and examination center or institution, conformity assessment bodies and any competent person, as may be prescribed;”;

(g)

in paragraph (la), by deleting the word “and” at the end of the paragraph; and

(h)

by inserting after paragraph (la) the following paragraphs:

“(lb) to review or audit any of the information which a licensee is required to furnish to the

Commission;

(lc)

to audit or cause to be audited activities of any licensee or any other person determined by the

Commission; and”.

s 5Substitution of section 4a

The principal Act is amended by substituting for section 4a the following section:

“Authorized officer 4a. (1) The Minister may in writing authorize any public officer or officer of the Commission to exercise the powers of enforcement under this Act.

(2)

Any such officer shall be deemed to be a public servant within the meaning of the Penal Code [Act 574].

(3)

In exercising any of the powers of enforcement under this Act, an authorized officer shall on demand produce to the person against whom he is acting the authority issued to him by the Minister.”.

s 6New sections 5a and 5b

The principal Act is amended by inserting after section 5 the following sections:

“Cost of holding things seized 5a. Where any equipment, instrument, material, book, record, account, document, goods or thing seized under this

Act or its subsidiary legislation is held in the custody of the

Government or the Commission pending completion of any proceedings in respect of an offence under this Act or its subsidiary legislation, the cost of holding such equipment, instrument, material, book, record, account, document, goods or thing in custody shall, in the event of any person being found guilty of an offence, be a debt due to the Government or the Commission, as the case may be, by such person and shall be recoverable accordingly.

Electricity Supply (Amendment)

Release of things seized 5b. (1) If any equipment, instrument, material, book, record, account, document, goods or thing has been seized under this Act, the authorized officer who effected the seizure, may at any time after that, with the consent of the Public

Prosecutor, release the equipment, instrument, material, book, record, account, document, goods or thing to the person as he determines to be lawfully entitled to the equipment, instrument, material, book, record, account, document, goods or thing if he is satisfied that the equipment, instrument, material, book, record, account, document, goods or thing is not otherwise required for the purpose of any proceedings under this Act or its subsidiary legislation, or for the purpose of any prosecution under any other written law, and in such event, neither the officer effecting the seizure, nor the

Government, the Commission or any person acting on behalf of the Government or the Commission shall be liable to any proceedings by any person if the seizure and the release of the equipment, instrument, material, book, record, account, document, goods or thing had been effected in good faith.

(2)

A record in writing shall be made by the authorized officer effecting the release of anything under subsection (1)

specifying in detail the circumstances of and the reason for the release and send a copy of the record to the Public

Prosecutor.”.

s 7Amendment of section 7

The principal Act is amended by deleting section 7.

s 8Amendment of section 8

Section 8 of the principal Act is amended—

(a)

by deleting the word “or” at the end of paragraph (c);

(b)

by inserting after paragraph (c) the following paragraph:

“(ca) refuses to give any officer of the Commission any information which may reasonably be required of him and which he has in his knowledge or power to give relating to any matter under the functions, duties and powers of the Commission under section 4; or”;

(c)

by substituting for the words “five thousand” the words

“fifty thousand”; and

(d)

by substituting for the words “two years” the words “three years”.

s 9Amendment of section 9

Section 9 of the principal Act is amended—

(a)

in subsection (1)—

(i)

by substituting for the words “Subject to such exemptions as may be prescribed” the words

“Subject to any exemptions as may be granted”;

and

(ii)

in the English language text, by substituting for the words “terms of a licence expressly” the words “terms and conditions of a licence as may be prescribed”;

(b)

in subsection (2), by inserting before the word “conditions”

the words “terms and”;

(c)

by inserting after subsection (2a) the following subsections:

“(2b) Notwithstanding subsection (2), the Commission may grant a licence upon payment of fees and upon such conditions as appear to be requisite or expedient having regard to the duties imposed by section 4 in respect of any installation as may be prescribed.

(2c)

The Commission may, from time to time, issue codes, guidelines or directions in respect of any installation.”; and

(d)

by inserting after subsection (6) the following subsection:

“(7) The Commission may, with the approval of the Minister, at any time—

(a)

impose any additional terms or conditions on the licences, including existing licences; or

Electricity Supply (Amendment)

(b)

amend any terms or conditions imposed on the licences, in accordance with the procedure as may be prescribed.”.

s 10New sections 9a, 9b, 9c, 9d and 9e

The principal Act is amended by inserting after section 9

the following sections:

“Obligation to submit business plan 9a. (1) The Commission may request any licensee to submit a five year, or such other period as determined by the

Commission, rolling business plan updated on an annual basis or any other time period as determined by the Commission according to procedures provided in the guidelines issued by the Commission.

(2)

Any licensee who contravenes this section commits an offence.

Requirements on licensing 9b. (1) Notwithstanding any other provisions of this Act, if at any time it appears to the Commission that a licensee has failed to comply with any requirement of or to meet any of its duties or obligations under this Act or its subsidiary legislation or the conditions of the licence, the Commission may require the licensee to rectify the failure or to comply with the requirements, duties or obligations or licence conditions within a specified period.

(2)

The licensee referred to in subsection (1) shall take all reasonable measures to comply and submit periodic compliance reports on the measures taken to the satisfaction of the Commission.

(3)

Any licensee who contravenes this section commits an offence.

Standards of performance of supply and services by licensees 9c. (1) The Commission may, from time to time, issue codes, guidelines or directions on such standards of performance of supply and services to be implemented by a licensee including procedures for—

(a)

reasonably meeting consumer requirements;

(b)

handling consumer complaints and disputes;

(c)

procedures for the compensation of consumers in case of a breach of the standards of performance or a breach of any of the licensee’s obligations under the

Act; and

(d)

the protection of consumer information.

(2)

Any action taken by the Commission pursuant to this section in respect of any failure by any licensee to meet the standards referred to in subsection (1), shall not prejudice or affect any other remedy which may be available in respect of the act or omission of the licensee which constituted that failure under any other law including the Consumer Protection

Act 1999 [Act 599].

(3)

The Commission may direct the licensee to provide any information on the levels of performance achieved and services provided in respect of the standards referred to in subsection (1) to consumers or potential consumers.

(4)

A licensee shall publish its own standards of consumer services in accordance with the codes, guidelines or directions referred to in subsection (1).

(5)

Any licensee who contravenes this section commits an offence.

Proper annual accounts by licensee 9d. (1) The licensee shall keep and maintain proper annual accounts of activities under the licence containing sufficient details as may be required of any revenues, costs, assets, liabilities, reserves or any other related matters.

Electricity Supply (Amendment)

(2)

The accounts shall also be in accordance with any guidelines or directions as the Commission may, from time to time, issue to the licensee and such accounts shall be submitted to the Commission accordingly.

Arrangement for procurement of electricity 9e. In exercising its functions under paragraph 4(d), any arrangement by licensees or the Single Buyer for the procurement of electricity through the electricity transmission network, shall be subject to the approval of the Commission.”.

s 11Amendment of section 12

Section 12 of the principal Act is amended by substituting for subsection (1) the following subsection:

“(1) Subject to the approval of the State Authority and to such conditions as the State Authority may deem proper, a licence may extend to authorizing the licensee to lay, place or carry on, under or over State land, such supply lines and to erect and maintain in or upon State land such posts and other equipment as may in the opinion of the Commission be necessary or proper for the purposes of the licensed installation.”.

s 12Amendment of section 17

Section 17 of the principal Act is amended by inserting after subsection (3) the following subsection:

“(4) Without prejudice to subsection (3), the licensee shall rectify and repair any damage to ensure continuation of the supply of electricity and where applicable, compensate for any damage within the period of time as directed by the Commission if it is shown to have resulted from the negligence of the licensee, his agents or servants, as the case may be.”.

s 13Amendment of section 21

Section 21 of the principal Act is amended—

(a)

by substituting for subsection (1) the following subsections:

“(1) Before the completion of a new installation, other than an installation belonging to a supply authority or an installation operated or owned by a licensee, the owner of the installation shall forward, in duplicate, to the Commission, an application for registration in the prescribed form.

(1a)

The Commission shall cause inspection and tests to be made within the prescribed period and, if the installation satisfies the requirements of this

Act, shall issue or cause to be issued a Certificate of

Registration in the prescribed form.”; and

(b)

in subsection (2), by inserting after the word “installation,”

the words “other than an installation excluded under subsection (1)”.

s 14New sections 22a and 22b

The principal Act is amended by inserting after section 22

the following sections:

“System Operator 22a. (1) The Minister may, upon the recommendation of the Commission, authorize or revoke the authorization of any person or a unit, department or division forming part of a licensee to be a System Operator by order published in the Gazette.

(2)

The System Operator shall comply with any regulations, codes, guidelines or directions with regards to its functions as may be made or issued by the Minister or the Commission, as the case may be, under this Act.

Electricity Supply (Amendment)

(3)

A System Operator, pursuant to discharging its functions under this Act, shall ensure non-discriminatory conduct and optimal operation of such power system to the extent that it does not compromise the reliability, security and safety of the power system.

(4)

The Commission may, from time to time, issue codes, guidelines or directions to ring fence the System Operator from activities under the licence of the licensee which are not related to its function as a System Operator.

Single Buyer 22b. (1) The Minister may, upon the recommendation of the Commission, authorize or revoke the authorization of any person or a unit, department or division forming part of a licensee to be a Single Buyer by order published in the Gazette.

(2)

The Single Buyer shall comply with any regulations, codes, guidelines or directions with regards to its functions as may be made or issued by the Minister or the Commission, as the case may be, under this Act.

(3)

A Single Buyer, pursuant to discharging its functions under this Act, shall ensure non-discriminatory conduct and optimal operation of such power system to the extent that it does not compromise the reliability, security and safety of the power system.

(4)

The Commission may, from time to time, issue codes, guidelines or directions to ring fence the Single Buyer from activities under the licence of the licensee which are not related to its function as a Single Buyer.”.

s 15New section 23d

The principle Act is amended by inserting after section 23c the following section:

“Registration of person providing service relating to efficient use of electricity 23d. No person shall provide any service relating to efficient use of electricity unless registered under this Act.”.

s 16Amendment of section 24

Section 24 of the principal Act is amended by inserting after subsection (5) the following subsection:

“(6) Any person who unlawfully—

(a)

hinders, prevents or obstructs the supply of electricity from being given by the licensee to the consumer;

(b)

hinders, prevents or obstructs the supply of electricity to any consumer from being disconnected by the licensee in accordance with this Act; or

(c)

causes the supply of electricity to any consumer to be disconnected, commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.”.

s 17Amendment of section 25

Section 25 of the principal Act is amended—

(a)

by inserting after paragraph (a) the following paragraph:

“(aa) the premises, being a commercial or industrial premises—

(i)

is located on land without the consent of the landowner;

(ii)

has not been approved pursuant to or is in contravention of the Local Government

Act 1976 [Act 171] and Town and Country

Planning Act 1976 [Act 172]; or

(iii)

is in contravention of any other written law; and

Electricity Supply (Amendment)

(b)

by substituting for paragraph (b) the following paragraph:

“(b) he is prevented from doing so by the malfunction or failure of any electricity supply infrastructure, electrical system, equipment or installation beyond his control, or as a result of fire, flood, landslide, explosion, accident, industrial disturbance on a national level, emergency, riot, civil disturbance or war, or any other similar event not within the control of the licensee.”.

s 18Substitution of section 26

The principal Act is amended by substituting for section 26

the following section:

s 26“Power to fix tariffs and charges

(1)

The Commission may determine tariffs and charges to be levied, with the approval of the Minister, by a licensee.

(2)

The Commission may, from time to time, issue guidelines on tariffs and charges including—

(a)

the methodology, principles, category and design of tariffs and charges;

(b)

the duration for the imposition of tariffs and charges and for the review of the tariffs and charges; and

(c)

the submission of any information as the Commission deems requisite and necessary.

(3)

A licensee shall submit a proposal on tariffs and charges to the Commission in accordance with the guidelines issued by the Commission under subsection (2).

(4)

The approved tariffs and charges shall be published by the licensee in such manner as in the opinion of the

Commission will secure adequate publicity for it.

(5)

The approved tariffs and charges under subsection (1)

may include but not limited to—

(a)

a fixed charge in addition to the charge for the actual electricity supplied;

(b)

a charge in respect of the availability of a supply of electricity and such charge may vary according to the extent of supply;

(c)

a rent or other charge in respect of any electricity meter or electrical plant or equipment provided by the licensee;

(d)

a rate or quantum of discount or premium from the approved tariff in respect of certain type of consumers or public purposes as determined by the Minister;

and

(e)

a rate or quantum of payment, charge or levy of any sum pursuant to any other written law or any guidelines issued by the Commission.

(6)

In levying tariffs and charges pursuant to subsection (1)

and entering into special agreements under section 29, a licensee shall not show undue preference or discrimination as among consumers or persons similarly situated having regard to the place and time of supply, the quantity of electricity supplied, the consumer load and power factor, and the purpose for which the supply is taken.”.

s 19Amendment of section 27

Subsection 27(1) of the principal Act is amended by inserting after the words “reasonably incurred” the words “as determined by the Commission”.

Electricity Supply (Amendment)

s 20New section 28b

The principal Act is amended by inserting after section 28a the following section:

“Supply agreement with consumer 28b. (1) A person who requested for a supply of electricity from a licensee after the date of coming into operation of this Act shall enter into an agreement with the licensee for the supply of electricity on such terms and conditions as may be specified in the agreement before the electricity is supplied.

(2)

An agreement referred to in subsection (1) shall be in the form and substance as approved by the Commission.”.

s 21Amendment of section 29

Section 29 of the principal Act is amended—

(a)

in subsection (1), by inserting after the words “a person”

the words “or a licensees”; and

(b)

by inserting after subsection (3) the following subsection:

“(4) Any agreement made between licensees under subsection (1) shall be approved by the

Commission.”.

s 22Amendment of section 30

Section 30 of the principal Act is amended—

(a)

by substituting for subsections (1) and (2) the following subsections:

“(1) A dispute between two or more persons regarding any matter under sections 9e, 17, 24 to 29 and 32

shall first be attempted to be resolved by negotiations between the parties to the dispute.

(2)

If the parties to a dispute cannot or otherwise fail to reach an agreement to resolve the dispute, the parties may seek resolution of the dispute by a committee established by the Commission to hear and resolve disputes:

Provided that in a case where the Commission thinks fit the dispute may be determined by arbitration under section 36.”;

(b)

in subsection (4)—

(i)

by inserting after the word “sections” the words

“9e, 17,”; and

(ii)

by inserting after the word “29” the words “and 32”; and

(c)

in subsection (5), by deleting the words “or the arbitrator, as the case may be,”.

s 23New sections 30a and 30b

The principal Act is amended by inserting after section 30

the following sections:

“Notification of dispute and binding decision by the

Commission

s 30a

(1)

Any party to a dispute may, in writing, notify the

Commission of the dispute which the parties to the dispute had failed to resolve by negotiation under subsection 30(1).

(2)

The committee established by the Commission under subsection 30(2) shall only be convened to resolve a dispute if the Commission is satisfied that—

(a)

an agreement to resolve the dispute will not be reached or will not be reached within a reasonable time;

and

(b)

the dispute and its notification is not trivial, frivolous or vexatious.

Electricity Supply (Amendment)

(3)

The committee may resolve the dispute upon such terms and conditions as it deems fit.

(4)

The terms and conditions under subsection (3) shall be in writing and accompanied by the grounds for the committee’s decision.

(5)

The committee’s decision shall be deemed as a decision of the Commission and be binding on the parties.

(6)

A decision made by the Commission under this section may, by leave of the Sessions Court, be enforced in the same manner as a judgment or order to the same effect by the Sessions Court, and where leave is so given, judgment may be entered in terms of the decision of the Commission and as if the decision was a judgment of such Court.

(7)

The judgment under subsection (6) can only be entered if a certificate has been issued by the Commission to any party for leave to proceed to the Court for the enforcement of the decision but no certificate is required if an action is taken by the Commission under this section.

Read on from s 30b