The criterion for awarding licenses is based on the premise that the Energy Regulation Board must license all enterprises conducting business in the energy sector. By virtue of section 10 (1) and (2) of the Energy Regulation Act No. 12 of 2019 (“the Act”) of the Laws of Zambia, it is an offence to establish or operate an enterprise without a license issued under the Act. The types of licenses issued by the Board are:
The licensing of activities in the energy sector is regulated by the Act as read with the Energy Regulation (General) Regulations, 2021, Statutory Instrument No. 42 of 2021.
Typically, an application for a license should be commenced by completion of the prescribed application Form, accompanied by other relevant information as applicable to the license being applied. The application form currently attracts a non-refundable amount of K1, 000.20.
Upon submission of the duly lodged Application, most applications require that a physical inspection of the assets or project be undertaken by the ERB. Thereafter, the applicant is required to pay an assessment fee, calculated at 0.1 of the cost of the envisaged investment. If the outcome of the inspection is positive and payment of assessment fee is done, the licensing regulations require that the application be advertised in the Government Gazette for a period of fourteen days, during which period the public is offered an opportunity to comment on or object to the issuance of the license applied for.
If after the prescribed fourteen day period, no adverse reports or objections are received with respect to the license application, the ERB will ordinarily proceed and issue the license.