Section 75: Tariffs and terms of supply

(1) The tariff structure and terms of supply shall be in accordance with principles of tariff calculation and terms of supply prescribed by the authority taking into account the licensee's total revenues from tariffs covering all reasonable costs and a reasonable rate of return. (2) An application for a licence shall contain- (a) a proposal for terms of supply and for fixing the tariffs, including total tariff revenues; (b) the structure of calculation of tariffs; and (c) information about existing and planned investments and the present and future quantity of electricity transmitted, distributed or sold. (3) A proposal under subsection (2) shall be in accordance with principles prescribed by the authority under subsection (1). (4) The methodologies and procedures of tariff calculation and terms of supply shall be approved by the authority and included in the licences. (5) The authority may prescribe different tariffs and terms of supply for different classes of consumers. (6) A licensee shall not, in fixing tariffs and terms of supply under this section, show undue preference or discrimination among customers similarly situated, having regard to- (a) the place and time of supply; (b) the quantity of electricity supplied; (c) consumer load and power factor; and (d) the purpose for which the supply is taken. (7) The holder of a licence for hydropower generation shall pay to the district local government in which his or her generating station, including any dam or reservoir, is situated a royalty agreed upon by the licensee and the district local government, in consultation with the authority. (8) Where the licensee and the district local government fail to agree upon the royalty, the authority shall determine the royalty to be paid to the district local government by the licensee. (9) Where the generating station is situated in more than one district local government area, the royalty paid under subsection (7) shall be shared proportionately among the district local governments. (10) The authority shall prescribe, in the instrument of delegation, the procedures for the approval of tariffs of licensees subject to regulation by local governments under section 15.