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Competition Act, 1998 (Act No. 89 of 1998)

Regulations

Energy Users Block Exemption, 2023

3. Category of agreements or practices exempted

 

(3) Subject to regulation 4, the Minister hereby exempts the following categories of agreements or practices among Energy Users from the application of sections 4(1)(a), 4(1)(b)(i) - excluding the fixing of the selling prices of goods and services to customers or consumers, 4(1)(b)(ii) and 5(1) of the Act:

 

(a) Agreements or practices among Energy Users to secure backup or alternative energy supply only through:
(i) Joint procurement of backup or alternative energy supply, including power purchase agreements; or
(ii) Sharing of backup and energy generation capacity, including energy generation equipment.

 

(b) Agreements or practices among Energy Users to reduce the cost or to promote the efficient use of energy supply only through:
(i) Joint negotiation and purchase of energy and related product and service supply, including power purchase agreements; or
(ii) Joint financing of backup and alternative energy supply; or
(iii) Joint purchasing of shared backup and alternative energy generation capacity.

 

(c) Agreements or practices among Energy Users to alleviate, contain and minimise the effects of the Electricity Supply Constraint on operations only through:
(i) Energy use, saving and optimisation initiatives to limit operational downtime and reduce energy demand; or
(ii) Joint procurement and the sharing of the provision of security services for purposes of securing shared or adjacent sites, infrastructure, equipment and facilities; or
(iii) Planning, coordination, maintenance and monitoring the performance of energy-related installations.