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SOURCE: Translated in part by F_S_ of W&C

DECREE 25/2000 of 3 October

In light of the need to define the form of the organisation and the functioning method of the National Electricity Council the provisions of article 42 of the Law 21/97 of 1 October and Article 153 (1) of the Constitution of the Republic, Cabinet decrees that:

Article 1 - The statutes of the National Electricity Council, abbreviated CNELEC,  public entity with juristic personality and administration and financial autonomy be approved. The statutes are annexed below and is an integral part of the current decree.

Article 2 - The procedural rules of CNELEC as a centre of arbitration, mediation and conciliation will be approved in its own diploma.

Article 3 - CNELEC is protected by the Minister of Mineral Resources and Energy.

Article 4 - The current decree will come into force 30 (thirty) days after it is published.

Approved by the Cabinet.

Let it be published.

The Prime Minster, Pascoal Manuel Mocumbi.

Statutes of the National Electricity Council

(CNELEC)

CHAPTER 1

General Provisions

Object

The current statute establishes a method for the organisation and functioning of CNELEC.

Article 2

Judicial Regime

CNELEC will operate (itself) in accordance with the provisions of the current statute, in accordance with the norms applicable to public sector service providers which have juristic personality and administrative and financial autonomy as well as in accordance with other applicable legislation.

Article 3

Headquarters

CNELEC will have its headquarters in the City of Maputo.

Article 4

Attributes (Ascribed characteristics)

CNELEC has been attributed with the following:

a) To promote the execution of legislation pertinent to the electric energy sector;

b) To identify the need for the development and expansion of services in accordance with the current and future needs;

c) To gather (make heard) public opinion regarding issues relevant to the national policy on electric energy;

d) To follow the process of allocating concessions and its execution;

e) To carry out the functions of conciliation, mediation and arbitration between different concessionaires or between the concessionaires and its consumers within the realm established in Article 7 (2) of Law 21/97 of 1 October.

Article 5

Competencies (Powers)

Without detracting from the several powers attributed by Law 21/1997 of 1 October, CNELEC is given the power to:

1 With reference to following the process of allocating concessions and its execution:

a) To pronounce upon proposals for the exploration and declaration of public utility in relation to a new project for the construction of electrical installations;

b) To pronounce upon proposals for new projects and request for concession to supply electrical energy;

c) To elaborate on pronouncements regarding tariffs and revision formulas;

d) To issue advisory opinions regarding the conditions of sale of electrical energy that will be applied by the concessionaires;

e) To issue advisory opinions regarding the annual report of the concessionaires;

f) To draft proposals in relation to the implementation of technical norm and insurance and any other matter with regards to which its proposal were solicited;

g) To inform the competent entity (authority) or the concessionaires when it detects the occurrence of an anomaly in the conception, execution and exploration of the object of the concession, especially when it relates to the quality of the service being provided so that these irregularities may be eliminated.

h) To carry out public consultations regarding new projects or requests for concession in order to evaluate its impact and the level of satisfaction of  its potential users.

2 With regard to conflict resolution, CNELEC has the power to serve as a mediator, conciliator or arbitrator as it may be solicited and in accordance with the legislation regarding arbitration, mediation, conciliation that is in force.

3 With regard to the identification of the need for the development and expansion of the service in accordance with the current and future consumption:

a) To draft or analyse proposals regarding the promotion and adoption of new technologies;

b) To draft or analyse expansion programs regarding the geographic area that is covered by the National Electricity Grid, also conducting national evaluations regarding the execution and compliance of these programs;

c) To gauge the level of satisfaction and execute the necessary activities, and executing enquiries and investigations involving the consumer;

d) To carry out studies and investigation that appear to be necessary or appropriate in order to carry out the competencies and tasks that have been allocated to it .

4 With reference to the execution of legislation which is relevant to this sector:

a) To encourage and promote uniform standards for the industry as well as a code of conduct applicable to the electricity industry;

b)       To pronounce upon the tariff regime for electric energy and the respective proposed alterations (variations) that may be submitted to it by the competent authority or by the concessionaire, taking into account the interest of the consumers.

5 CNELEC also has the power to:

a) Carry out the activities that are necessary for CNELEC to execute the powers that were attributed to it;

b) Pronounce upon medium and long-term expansion policies regarding the National Electricity Transportation Grid;

c) Analyse and present advisory opinions regarding violations of the law;

d) Draft or analyse proposals regarding the norm for the electricity sector where it appears to be necessary or useful;

e) Deal with the internationalisation of costs, such as social and environmental costs in the tariff.

CHAPTER 2

Constitution and Composition

Section 1

Of the members

Article 6

Selection and Nomination

1 The members of CNELEC are individuals with recognised capabilities, experience and knowledge in the relevant areas of tariffs, economy, technical and judicial (legal) aspects of the systems used to supply electric energy. These members have to be permanent residents of the country.

2 CNELEC is made up of seven (7) members nominated by the Prime Minister, two of which are chosen by the Government and one is chosen by each one of the following entities:

a) Associations representing the productive sector;

b) Associations representing the consuming public;

c) Institutions of  scientific investigations;

d) The Manager of the National Transportation Grid;

e) The Concessionaires.

3 The members chosen by Government are proposed by the Minister that is in charge of the Energy Area in consultation with Ministers in charge of the areas of State Administration and Finance.

4 The President of CNELEC chosen from one of the representatives of the Government, will be proposed by the Minister in charge of the area’s energy and must have tertiary education.

5 The president of CNELEC is nominated by the Cabinet.

Article 7

Duration of the Mandate

1 Save for the provisions of sub-section 2 of this article the mandate of the numbers of CNELEC is 5 years and is renewable once only.

2 The members of CNELEC, that are not representatives of the Government and the Manager of the National Electricity Transportation Grid, will carry out their first mandate for 4, 3, 2 and 1 years starting from the date that they take up the post in accordance with the selections process carried out for this purpose.

3 The members of CNELEC will remain in their role until the new member take up their posts (positions).

Article 8

Cessation (termination) of the mandate

1 The mandate will terminate for reasons of:

a) Revocation;

b) Renunciation of the position;

c) Death of the members.

Article 9

Revocation of Mandate

1 The mandate of the members of CNELEC shall be revoked when any of the following situations occur:

a) Permanent incapacitation or supervening incompatibility of the member;

b) Grave omission committed by the member while carrying out its functions or in carrying out any other obligation inherent in the position;

c) Failing to carrying out the functions for which he was nominated;

d) Judicial condemnation stated in a court order for a crime of dishonourable conduct or unjustified failure to carry out its obligations or temporary incapacitation for 12 consecutive months or nine months in the same year.

2 The revocation of the mandate signifies a permanent impediment to the exercise of the functions as a member CNELEC.

Article 10

Substitution of members

Whenever a vacancy occurs at the member level of CNELEC, the Government or the competent authority referred to in Article 6 (2) to which the member in question relates will designate another person to fill that space.

Article 11

Incompatibilities

1 The function of member of CNELEC is incompatible with any other (legal) office within any concessionaire entity for the supply of electric energy.

2 The qualities (characteristics) of the member of CNELEC are also incompatible with the functions of a member of the Assembly of the Republic, member of Government or any other organ of state.

Chapter 3

Organisation and Function

Section 1

Organisation

Article 12

Structure

For the exercise of its power, CNELEC is organised into:

a) A Secretariat; and

b) Specialised Commissions.

Article 13

The Secretariat

1 The Secretariat is empowered to ascertain (provide) administrative and logistics report to CNELEC.

2 The Secretariat is led by a Secretary-General who also exercises the function of a scribe.

3 The Secretary General is nominated by the President of CNELEC.

Article 14

Specialised Commission

1 CNELEC is made up of specialised commissions which are made up of a minimum of two members and a maximum of 3 members in its commission.

2 The specialisation of the commissions and their functions are fixed in the internal regulations.

Section 2

Functioning

Article 15

Meetings and deliberation

1 CNELEC will have ordinary meetings twice a month and whenever it appears to be necessary, on the initiative of its President or at the request of its members.

2 All the deliberations, including the issuing of advisory opinion will be stated in the minutes which will be signed by all members that are present.

3 Each member will have the right to one vote. Votes by proxy are not allowed.

4 In the case of a draw the President of CNELEC will have one more vote.

Article 16

Quorum for the taking of decisions

1 CNELEC may only make valid deliberations if more than half of its members at present in that meeting.

2 When dealing with the revision of a previous decision, the deliberation will only be valid when the total number of its members are present.

3 In case the issue of conflict of interest arises in relation to one of the members in any matter that is subject to a deliberation, the President will decide on the impediment (restriction) to be applied whether, it be in relation to the participation in the discussion or in the exercising of the right to vote.

Article 17

Calling of meeting

1 The President of CNELEC will call a plenary meeting with a minimum of 15 days notices, wherein it will state the hour, location and the agenda of the meeting.

2 When the matter is open to the public, the President of CNELEC will call a plenary meeting by means of a public announcement in a National Newspaper.

3 The plenary sessions will be open to the public in the case of  concessions and drafting of proposed Law.

4 Any member of CNELEC may propose points (matters) to be included in the agenda of the meeting, to the President of CNELEC.

Article 18

Competences of the President

The President of CNELEC has the power:

a) Represent CNELEC and to sign contracts and agreements in its name;

b) Call cessions of CNELEC, propose an agenda for such cessions and to preside over such cessions;

c) Nominate the members that will constitute (form part of) the specialised commissions;

d) Give effect to the management of the human resources, materials and finances of CNELEC;

e) Designate, in due time, who will represent or substitute members of CNELEC in the event of absenteeism or impediments;

f) Authorise the absenteeism of the members of CNELEC;

g) Authenticate the minutes;

h) Authorise the costs (expenditure);

i) Authorise public consultations;

j) Execute the decisions CNELEC.

SECTION 3

General Procedures

Article 19

Information

1 CNELEC may solicit information and documents necessary to carry out its function from the manager of the National Electric Energy Transportation Grid and the Concessionaires;

2 The entities referred in the previous number are obliged to supply the information and documents solicited within a period not longer than thirty (30) days save for reasons of force majeure and when the nature of the information does not allow it, which fact should be justified and communicated to CNELEC with an indication of the date that the entity expects to be able to present the information or the document.

3 The manager of the National Electric Energy Transportation Grid and the Concessionaires are obliged to supply CNELEC with the information that was solicited from them and refers to the following level of service:

a) Attending to the users;

b) Health, insurance and professional qualification of the workers;

c) Coverage of the population (size of the population that is covered) or access to public systems.

d) Regularity (reliability/constancy) and continuation of the supply of services;

e) Environmental impact of the systems and its functioning;

f) The premises and methods used for calculating the proposed tariffs.

4 CNELEC will maintain confidential the information that it gathers pursuant to the previous number in cases where its publications may be prejudicial to the entities that provided it unless there is a strong reason for its publication.

Article 20

Enquiries and Public Consultation

CNELEC may on its own initiative or the request of the Minister in charge of the area of energy conduct any enquiry and/or public consultation as long as these have an object that falls within the ambit of its powers.

Article 21

Right of Access to Information

1 In the exercise of powers stated in Article 6, CNELEC should conduct itself in a transparent manner maintaining whenever the case, the entities up to date on the processes in terms of which the respective texts (data) were supplied as well as be able to request pertinent information for the matter under consideration.

2 To give effect to the previous number a maximum period of thirty (30) days is set after which the entities referred in the previous number will be able to issue its comments suggestions or provide the information that was requested.

Article 22

Assessment, auditing and exams

1 To give effect to the actions of an assessment, inspection and auditing occurring as a result of the powers of CNELEC, its workers and collaborators, provided that they have the necessary credentials, have the benefit of free access to all the installations, infrastructures and equipment linked to the concessions of the National Electric Energy Transportation Grid.

2 In the actions referred to the in the previous number, the workers and as collaborators of CNELEC, when having the necessary credentials, are treated as (equal to) agents of the authority when relating to access to installations, documents and books of the entity in issue.

CHAPTER 4

ASSET MANAGEMENT AND FINANCIAL MANAGEMENT

Article 23

Patrimony (Body of Assets)

The assets, rights and obligations acquired in the exercise of its function form part of the patrimony of CNELEC.

Article 24

Receipts

CNELEC receives the following:

a) 25% of the taxes from the concession of electric energy;

b) 50% of the value of  the fines that were applied for transgressions of the energy legislation;

c) The value invoiced for the purposes of arbitration, mediation and conciliation;

d) Subsidies from the State;

e) Other receipts, profits or values that are derived from its activities or from the Law or from the contract that belongs to it or had been allocated to it including any donations, subsidies and other forms of  financial support.

Article 25

Costs

The costs of CNELEC are the following:

a) The charges that flow from the respective functioning and the exercise of it powers and competences;

b) Contracting of technical assistance that is needed for it to carry out its mission;

c) The charges of enquiries, studies and technical evaluations, auditing and investigations in the areas linked to its powers;

d) Remuneration of its respective workers (employees);

e) The costs of acquiring, maintaining and conserving its assets, equipment and services that it needs to use; and

f) Transfers to the State budget.

Article 26

Economic Management and Financial Management

1 The provisions relating to the management of the budget and accounting for institutions of the state that have administrative and financial autonomy are applicable to CNELEC.

2 Financial management of CNELEC is regulated and controlled by means of:

a) Annual and multi-annual programs that will be developed by CNELEC which will detail the financial resources and the breakdown of the disbursement for each expected item;

b) Plans of actions of (activities), budget and other forms of annual management;

c) Trimestral management reports;

d) Annual reports;

e) Monthly reports on the situation regarding the receipts and costs and the level of budgetary execution;

f) The annual budget and the respective plan of action of CNELEC will be presented to the Ministers that are in charge of the area of Energy and Finance for approval.

3 The alterations to the approved annual budget are subject to the formalities referred in the previous number.

4 The annual report of the accounts of CNELEC shall be audited and published in the Boletim da República (Government Gazette) and in the newspaper with the greatest national circulation and is subject to the views of the Administrative Tribunal.

CHAPTER 5

PERSONNEL

Article 27

Statute and Regime

The (legal) employment relationship is managed as required by the particular case and the norms applicable to State employees or in terms of the respective contracts of employment of the individuals.

Article 28

Mobility of Employees

1 The employees of the State and its subordinate institutions, as well as employees of public enterprises, may be called upon to carry out functions within CNELEC when they are required to or when they are commissioned to provided such services.  These employees will be guaranteed a space (employment) in their original position and will also be guaranteed the right they had acquired therein.

2 National and foreign citizens proficient in the recognised specialisations may be contracted by CNELEC to provide services where CNELEC does not have the required knowledge but is required to carry out studies or special work. The respective remunerations will be stated in an agreement between the parties.

CHAPTER 6

FINAL AND TRANSITIONAL PROVISION

Article 29

Remuneration

1 The members of CNELEC will be remunerated in accordance with their functions.

2 The remunerations, rights and benefits of the members of CNELEC are fixed by a Ministerial Diploma passed by the Ministers that are in charge of the areas of  Energy and Finance.

Article 30

Internal instructions and regulations

1 CNELEC will draft and publish norms and instructions that appear to be necessary and appropriate for the correct execution of its powers.

2 CNELEC will submit its internal regulation, wherein it will state the way in which the different organs will operate, to the Minister in charge of Energy, within 90 (ninety) days from the date that the current statute comes into force.

Article 31

Transitional Provisions

The Minister in charge of the area of energy has the power to create the necessary conditions and determine the actions required for the establishment of  CNELEC.