Section 20: Prices charged for supply of electricity

20. Prices charged for supply of electricity (1) The prices to be charged for electricity supplied shall be fixed by the Board and shall be such as to cover— (a) the cost of production (including generation, transmission, distribution, maintenance and administration), depreciation, interest charges, and taxation (if any); (b) the amounts required for the redemption of loans (including sinking fund contributions) to the extent that those amounts exceed the provisions for depreciation; and (c) allocation to reserves. (2) Subject to subsection (3), the prices fixed under this section shall be published by way of general notice in the Gazette and shall be chargeable as from the date of the publication or as from such date as may in the notice be determined by the Board, notwithstanding that other prices may have previously been agreed upon by contract or otherwise between the Board and any consumer. (3) Subsection (2) shall not apply to— (a) any long-term contract for the supply of electricity existing at the date of the coming into operation of this subsection between the Board and— (i) — (ii) any local authority; (iii) any sugar estate; (iv) the owners of the pumping station at Beard on Reunion Sugar Estate; (b) any long-term contract in which it is specified that the prices to be charged for electricity supplied under that contract shall not for the duration of the contract be altered as a consequence of any change in prices effected by subsection (2). (4) In subsection (3), “long-term contract” means a contract the duration of which shall not be less than 2 years.