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The Draft Energy Action Plan complements the Draft Energy Policy and defines steps for achieving these objectives. Laws and regulations governing the electricity sector The government developed the Electricity Supply Act of 2011 for the island of Saint Kitts. In 2014, the government, with support from the European Union, updated the ESA. However, the revised version has not been made publicly available nor is there evidence to suggest that it has been approved. Further revisions of the ESA may be necessary once geothermal power comes online. The ESA governs and establishes the structure of the electricity sector in Saint Kitts. It does so by vesting all of the Saint Kitts Electricity Department’s assets and liabilities to SKELEC. The ESA also laid the legal framework to allow the Ministry of Housing to grant SKELEC an exclusive license to transmit, distribute, and supply electricity in Saint Kitts for 25 years. In 2011, the government granted SKELEC its license. The ESA allows IPPs to operate in Saint Kitts by obtaining a license from the Ministry of Housing. However, the ESA does not establish the process that IPPs should follow to obtain a license.346 The ESA does not establish a tariff-setting mechanism, but instead, stipulates that the Public Utilities Commission (PUC) is responsible for reviewing and setting tariffs.347 However, the PUC has yet to be appointed. The governor general is responsible for setting tariffs and can adjust the tariff at his discretion by issuing regulations. These regulations must be approved by National Assembly to come into effect.348 The ESA does not establish a formula for calculating tariffs, does not set a minimum rate of return, and does not establish criteria that the National Assembly should use to evaluate proposed tariff adjustments.349 Another key law governing the electricity sector is the Public Utilities Commission Act of 1992 (“the PUC Act”). 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. 346. The Government of Saint Kitts and Nevis, “Saint Cristopher (Electricity Supply) Bill, 2011,” accessed November 14, 2014, https://groups. google.com/forum/#!topic/sknfus/YceWobynQrk. 347. Ibid. 348. World Bank, “Project Appraisal Document... in Support of the First Phase of the Eastern Caribbean Energy Regulatory Authority Program,” Report No: 51576-LAC, May 16, 2011, accessed November 17, 2014, http://www-wds.worldbank. org/external/default/WDSContentServer/WDSP/IB/2011/05/30/000356161_20110530015337/Rendered/ PDF/515760PAD0P1010e0only0900BOX358362B.pdf. 349. The Government of Saint Kitts and Nevis, “Saint Cristopher (Electricity Supply) Bill, 2011,” accessed November 14, 2014, https://groups. google.com/forum/#!topic/sknfus/YceWobynQrk. 148PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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