Licence authorising provision of district cooling services
Open ↗10.—(1) A person must not provide district cooling services to any service area unless the person is authorised to do so by a licence.
(2) Every licence granted or renewed under this section must be in such form and for such period and may contain such terms and conditions as the Authority may determine.
(3) Without limiting subsection (2), a licence may be granted to any person, class of persons or a particular person, and may include conditions requiring the licensee —(a)
to prepare itself to deal with any public emergency;
(b)
to pay to the Authority a fee for the grant of the licence or to pay to it periodic fees for the duration of the licence, or both, of any amount that may be determined by or under the regulations or licence;
(c)
to appoint technical and financial auditors approved by the Authority;
(d)
to comply with any direction given by the Authority;
(e)
to comply with the standards and requirements stipulated in any code of practice and any other standard of performance applicable to the licensee; and
(f)
to do or not to do things that are specified in the licence or are of a description so specified.
(4) Conditions included in a licence may contain all or any of the following:(a)
provisions for the conditions to cease to have effect or be modified at such times, in any manner and in any circumstances that may be specified in or determined by or under the conditions;
(b)
provisions regulating the prices to be charged by the licensee including —(i)
the fixing of prices or the rate of increase or decrease in prices;
(ii)
the fixing of a maximum price or maximum rate of increase or minimum rate of decrease in the maximum price;
(iii)
the fixing of an average price or an average rate of increase or decrease in the average price;
(iv)
the setting of price policies or principles;
(v)
the setting of prices with reference to a general price index, the cost of production, a rate of return on assets employed or any other specified factors; and
(vi)
the setting of prices with reference to the quantity, location, period, temperature of coolant, or other specified factors relevant to the provision of district cooling services;
(c)
provisions for the periodic disclosure of information, by way of an information memorandum, including —(i)
reports on the management of the district cooling services;
(ii)
reports on asset management of the district cooling system;
(iii)
reports on price comparison of the district cooling service with the conventional air conditioning systems;
(iv)
reports on performance comparison of the district cooling services with the conventional air conditioning systems;
(v)
security measures; and
(vi)
reports on financial matters and accounts of the licensee;
(d)
provisions requiring the licensee to provide a sinking fund for asset management.
(5) Any provision included in a licence under subsection (4)(a) has effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.
(6) Any fee required to be paid to the Authority under subsection (3)(b) may be recovered by it in any court of competent jurisdiction as if it were a simple contract debt.
(7) The grant and renewal of licences under this section are at the Authority’s discretion.
(8) Any person who is aggrieved by a refusal of the Authority to grant or renew a licence may, within 14 days of the refusal, appeal to the Minister whose decision is final.
Restriction on transfer of licence
Open ↗11. A licence is not transferable and any purported transfer of any licence is void.
Modification of conditions of licence
Open ↗12.—(1) Subject to this section, the Authority may modify the conditions of a licence.
(2) Before making any modification to the conditions of a licence under this section, the Authority must give notice to the licensee concerned —(a)
stating that it proposes to make the modification in the manner as specified in the notice; and
(b)
specifying the time (not being less than 28 days from the date of service of notice on the licensee) within which written representations with respect to the proposed modification may be made.
(3) Upon receipt of any written representation under subsection (2)(b), the Authority must consider the representation and may —(a)
reject the representation; or
(b)
withdraw or amend the proposed modification in accordance with the representation or otherwise,
and, in either case, the Authority must thereupon issue a direction in writing to the licensee concerned requiring that effect be given to the proposed modification specified in the notice or to such modification as subsequently amended by the Authority.
(4) Any licensee who is aggrieved by a direction of the Authority under subsection (3) may, within 14 days of the receipt by the licensee of the direction, appeal to the Minister whose decision is final.
(5) The Authority must not enforce a direction given under subsection (3) —(a)
during the period mentioned in subsection (4); and
(b)
whilst the appeal of any licensee is under consideration by the Minister.
(6) If no written representation is received by the Authority within the time specified under subsection (2) or if any written representation made under that subsection is subsequently withdrawn, the modification takes effect as specified in the notice given under that subsection.
Suspension or cancellation of licence
Open ↗13.—(1) If the Authority is satisfied that —(a)
a licensee is contravening, or is likely to contravene or has contravened, any of the conditions of its licence, any code of practice or other standard of performance applicable to the licensee, any of the provisions of this Act or any direction issued by the Authority to, or applicable to, that licensee;
(b)
a licensee has gone into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction;
(c)
a licensee has made any assignment to, or composition with, its creditors; or
(d)
the public interest or security of Singapore so requires,
the Authority may, by written notice and without any liability for compensation, do all or any of the following:
(e)
suspend or cancel its licence for any period that the Authority thinks fit;
(f)
require the licensee to replace its management with appointees approved by the Authority;
(g)
require the licensee to comply with any direction given by the Authority relating to or in connection with the district cooling system;
(h)
require the licensee to furnish performance bonds, banker’s guarantees and any other securities for such amounts and on such terms as the Authority sees fit;
(i)
impose a financial penalty not exceeding 10% of the annual turnover derived from the provisions of district cooling services by the licensee in Singapore as ascertained from its latest audited accounts.
(2) Any licensee who is aggrieved by any decision of the Authority under subsection (1) may, within 14 days after the date of the notice in writing mentioned in that subsection, appeal to the Minister whose decision is final.
Codes of practice
Open ↗14.—(1) The Authority may issue or approve and from time to time modify codes of practice and other standards of performance in connection with the provision of district cooling services.
(2) If any provision in any code of practice or other standard of performance issued or approved by the Authority is inconsistent with this Act, the provision has, to the extent of its inconsistency, no effect.
(3) The Authority may, in any licence, exempt any licensee from any provision in any code of practice or other standard of performance issued or approved by the Authority generally or for any time that the Authority may specify.
(4) Any code of practice issued or approved by the Authority is deemed not to be subsidiary legislation.
Compliance with codes of practice
Open ↗15. Every licensee must comply with the codes of practice and other standards of performance issued or approved under section 14(1) in connection with the provision of district cooling services.
Directions affecting licensee
Open ↗16. The Authority may give directions for or in relation to standards of performance and procedures to be observed by licensees and other persons for or in respect of the following:(a)
the continuity and reliability of the provision of district cooling services to the consumers;
(b)
the security of the provision of district cooling services to the consumers;
(c)
the interests of public safety.
Exclusion of liability for Authority
Open ↗17. Despite the grant of any licence, the Authority shall not be liable in any circumstances for any loss, damage or cost sustained by any person as a result of any default, negligence, breach or wrongful act or omission of any licensee or agent, employee or independent contractor of the licensee.
General duties of licensee
Open ↗18.—(1) It is the duty of a licensee to —(a)
maintain a reliable, efficient, co-ordinated and economical district cooling system in accordance with any codes of practice or other standards of performance that may be issued or approved by the Authority under section 14(1); and
(b)
ensure public safety in relation to the provision of district cooling services.
(2) A licensee must not do or omit to do any act which will adversely affect, directly or indirectly, the reliability and stability of district cooling services provided to consumers.
(3) A contravention of subsection (1) or (2) is to be dealt with in accordance with section 13.
Price fixed by licensee
Open ↗19.—(1) Subject to this section and section 18, the prices to be charged by a licensee and to be paid by consumers for the provision of district cooling services must be in accordance with any prices that may be fixed from time to time by the licensee in accordance with the conditions of its licence.
(2) In fixing prices of district cooling services, a licensee must neither show undue preference as between persons similarly situated nor exercise undue discrimination as between persons similarly situated, having regard to the place and time of supply and the quantity supplied.
(3) In addition to the prices as may be fixed by a licensee under subsection (1), the licensee must also review the prices as directed by the Authority from time to time.
Keeping of register by Authority
Open ↗20.—(1) The Authority must, at such premises and in such form as it may determine, maintain a register for the purposes of this Act.
(2) The Authority must cause to be entered in the register the particulars of —(a)
every licence granted to a particular person;
(b)
every modification or revocation of a licence; and
(c)
any other matter that the Authority thinks fit.
(3) The register must be available for inspection by the public during such hours and subject to the payment of such fee as may be specified by the Authority.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
