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Laws and regulations governing the electricity sector The ESA is the most important document governing the regulatory framework of the electricity sector in Dominica. The ESA establishes the structure of the sector, including the procedure for licensing and monitoring utilities. The regulation and governance of the sector is further developed through decisions made by the IRC. These documents are further described below: • The Electricity Supply Act—The ESA establishes the institutional framework of the electricity sector as well as the rights and duties of the different bodies in the electricity sector. The ESA creates the IRC, which is responsible for setting tariffs, licensing service providers, and setting service standards. In addition, it sets the process for granting electricity licenses. The ESA also specifies that renewable resources must be included in Dominica’s electricity generation expansion plans. • Decisions issued by the IRC—The IRC has issued several decisions that further develop the legal framework governing the sector. The most important decision issued by the IRC is the IRC’s decision on Regulatory Policy and Procedure—Licensing Procedures. This decision sets out the license application process. Another important decision is the IRC’s decision on the Tariff Regime for Dominica Electricity Services Ltd. 2009/004/D, which establishes the tariff- setting mechanism. The Tariff Regime sets a formula for determining tariffs that allows for DOMLEC to recover costs associated with generation from renewable energy and electricity purchased from IPPs.227 The legal framework governing the electricity sector lacks laws and regulations that govern the exploration and exploitation of geothermal resources. The government, in collaboration with the Organization of American States (OAS), prepared the Geothermal Resources Development Bill, which is intended to fill this gap. The Geothermal Bill has been revised several times; the most recent draft was completed in April 2013. It specifies that geothermal resources belong to the state, and sets out the process for receiving the government’s approval for exploring and developing geothermal resources. The government expected Parliament to pass this version of the bill by the end of 2015.228 12.1.3 Institutional structure of the electricity sector In Dominica, there are several entities that play a key role in the electricity sector. DOMLEC is the sole provider of electricity services. The Ministry of Public Works, Energy, and Ports sets the policies for the energy sector in Dominica. The IRC is the electricity sector’s regulator. Figure 12.2 presents the relationships between the key entities in Dominica’s energy sector. 227. Independent Regulatory Commission, “Decision Document: Tariff Regime for Dominica Electricity Services Ltd.,” (Document Ref: 2009/004/D, April 27, 2010), accessed November 12, 2014, http://www.ircdominica.org/files/downloads/2011/09/Descision_re_ DOMLECs_Tariff_Regime.pdf. 228. “Geothermal Bill to go before Parliament soon,” Dominica News Online, March 18, 2015, accessed March 20, 2015, http:// dominicanewsonline.com/news/homepage/news/economy-development/geothermal-bill-to-go-before-parliament-soon/. 102PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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