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14.1.2 Key laws, regulations, and policies governing the sector The electricity sector in Nevis is governed by the Electricity Ordinance of 1998. The Electricity Ordinance only applies to Nevis, not to Saint Kitts. The Electricity Ordinance grants NEVLEC an exclusive license to transmit, distribute, and supply electricity in Nevis. In addition, the government drafted, but has not approved, the Draft Energy Policy and the Draft Energy Action Plan. These documents were created at the federal level and apply to both Saint Kitts and Nevis. They outline the government’s objectives and plan for increasing the supply of electricity from renewable generation and improving the efficiency of the electricity sectors in Saint Kitts and Nevis. Policies in the energy sector The government prepared the Draft Energy Policy and the Draft Energy Action plan for the Federation. These documents present the government’s vision of more affordable, more reliable, and less-polluting energy sectors in Saint Kitts and Nevis. However, the government has not yet approved the Draft Energy Policy or the Draft Energy Action Plan. The Draft Energy Policy includes the following objectives: • Exploring alternative energy sources, particularly renewable energy, to decrease dependence on imported oil • Interconnecting the electricity grids of Saint Kitts and Nevis, and interconnecting the Federation with other neighboring countries • Improving the efficiency of power production, transmission, and distribution The Draft Energy Action Plan complements the Draft Energy Policy and identifies the steps for achieving the objectives. However, the actions identified in the Draft Energy Action Plan of 2011 were vague and did not have timelines. In 2014, the European Union supported the government in revising the Draft Energy Policy and Draft Energy Action. These new versions of the documents have not been published nor approved. Laws and regulations governing the electricity sector The Electricity Ordinance governs the electricity sector in Nevis. It grants NEVLEC an exclusive license to transmit and distribute electricity.319 NEVLEC’s license does not have an expiration date.320 The Electricity Ordinance does not establish a tariff-setting mechanism, but mandates that fair and reasonable rates be used. The Public Utilities Commission (PUC) was given the authority of setting and adjusting tariffs,321 but because the PUC has not been appointed, NEVLEC sets its own tariffs.322 In addition, the Electricity Ordinance allows for private individuals or companies to generate electricity for their own consumption from wind and solar in Nevis.323 The Electricity Ordinance also allows for IPPs to operate in the sector if they obtain a license from the Ministry of Housing. However, the legislation does not establish a process for obtaining a license.324 The legal and regulatory framework of the electricity sector is further developed by the Public Utilities Commission Act of 1992 (“the PUC Act”) and the Geothermal Resources Development Ordinance of 2008. The government developed the PUC Act for the Federation. It mandates the establishment of the PUC to regulate the electricity sectors in Saint Kitts and Nevis; however, as mentioned previously, the PUC has not been appointed. The NIA developed the Geothermal Resources Development Ordinance of 2008 for the island of Nevis. The Geothermal 144PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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