A competence is something you do. It is not something you know. For example, "Able to operate a fax machine". There are many different definitions of competence but a good one is "A competence is the efficient, effective and proper application of skills based on appropriate knowledge".
There are three elements to a competence:
Knowledge
Skills
Attitude
In other words to be "competent" at something, you need the "intellectual" know-how; the skill that comes from the experience of doing it and the motivation to do it.
A good introduction to competence can be found in the book Upside Down Management by John Lorriman, Ron Young and Paul Kalinauckas.
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Upside Down Management (Aug 1995 
) by John Lorriman, Ron Young, Paul Kalinaukas 
Competencies [6 items]
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