Section 25: Competition during the pre-privatisation stage

Immediately following the issuance of interim licences to the successor companies in accordance with section 23, and prior to the declaration by the Minister, under section 24 (3), that a more competitive market is to be initiated:(a) the trading licensee holding a bulk purchase and resale licence under section 67(2), or an interim licence for this purpose, and to which the function of bulk procurement and bulk sale of power and ancillary services has been transferred pursuant to Part I of this Act, shall engage in the purchase and resale of electrical power and ancillary services from independent power producers and from the successor generation companies, in accordance with its licence ;
(b) the successor company that has been issued both a transmission licence and a system operation licence pursuant to section 65(2), or an interim licence for these purposes, shall engage in the transmission of electricity and in system operation, including the procurement of ancillary services, in accordance with its licence;
(c) successor generation companies shall, in accordance with their licences, sell electrical power to the trading licensee described in subsection (a), distribution companies and eligible customers, pursuant to the terms of any contracts formed with such distribution companies and eligible customers;
(d) successor generation companies shall, in accordance with their licences, sell ancillary services to the trading licensee described in subsection (a) or the successor company identified in subsection (b), pursuant to contracts that allow for the novation of the rights and obligations of the successor company identified in subsection (b) to an independent system operator in the event of a transfer of the obligation of system operation by the successor company to an independent system operator under section 26(7) ;
(e) independent power producers shall, in accordance with their licences, sell electrical power to either:
(i) the trading licensee described in subsection (a) pursuant to contracts that allow for the novation of the rights and obligations of the trading licensee described in subsection (a) to one or more other licensees, as specified in the contract, following the declaration of a substantially privatised market under section 24; or
(ii) distribution companies and eligible customers, pursuant to the terms of any contracts formed with such distribution companies and eligible customers.
(f) indepedent power producers shall, in accordance with their licenses, sell ancillary services to either:
(i) the trading licensee described in subsection (a), pursuant to contracts that allow for the novation of the rights and obligations of the trading licensee described in subsection (a) to one or more other licensees, as specified in the contract, following the declaration of a substantially privatised market under section 24 ; or
(ii) the successor company identified in subsection (b), pursuant to contracts that allow for the novation of the rights and obligations of the successor company identified in subsection (b) to an independent system operator in the event of transfer of the obligation of system operation by the successor company to an independent system operator under section 26 (7).