ELECTRICPOWERSECTORREFORMACT

ARRANGEMENTOFSECTIONS

PARTI

FormationofInitialandSuccessorCompaniesandthetransferofassetsandliabilitiesoftheNationalElectricPowerAuthority

SECTION

1.FormationoftheinitialholdingcompanyNo.1of1990.

2.Shareholdingintheinitialholdingcompany.

3.TransferofassetsandliabilitiesoftheAuthoritytotheinitialholdingcompany.

4.Exemptionfromstampduty.

5.TransferofemployeestotheinitialholdingcompanyandtotheCommission,etc.

6.DirectionstotheAuthority.

7.Licensingoftheinitialholdingcompany.

8.Formationofsuccessorcompanies.

9.Shareholdingsinthesuccessorcompanies.

10.Transferofassetsandliabilitiesoftheinitialholdingcompanytothesuccessorcompanies.

11.Conclusiveevidence.

12.Releasefromliabilityorobligation.

13.Enforcementorcontinuationofanycauseofactionorproceedings.

14.Limitationofsuitagainstatransferee.

15.Atransfershallnotbedeemedtoconstituteabreachetc.,ofcontract.

16.Provisionofrecordsetc.,toatransferee.

17.Furtherorderamendingatransferorder.

18.Regulations.

19.Guaranteeorsurety.

20.Considerationforthetransferofassetstosuccessorcompanies.

21.Transferofemployeestothedesignatedsuccessorcompaniesandconditionsofservicesoftransferredemployees.

22.Directionstotheinitialholdingcompany.

23.Licensingofthesuccessorcompanies.

24.PrivatisationAct.

PartII

DevelopmentofaCompetitiveElectricityMarket

25.Competitionduringthepreprivatisationstage.

26.Competitionduringthepostprivatisationstage.

27.Eligiblecustomers.

28.Ministerialdirectivesrespectingcompetitiontransitioncharges.

29.Commission'sdeterminationsrespectingcompetitiontransitioncharges.

30.Publichearingrespectingcompetitiontransitioncharges.

PartIII

Establishment,functionsandpowersoftheNigerianElectricityRegulatoryCommission

31.EstablishmentoftheCommission.

32.ObjectsandfunctionsoftheCommission.

33.Generalpolicydirections.

34.AppointmentofCommissioners.

35.TermsofofficeandconditionsofserviceofCommissioners.

36.ConditionsforappointmentasCommissioner.

37.VacationofofficebyCommissioner.

38.DismissalorsuspensionofCommissioners.

39.FillingofvacanciesintheCommission.

40.ChairmanandViceChairmanoftheCommission.

41.MeetingsandprocedureoftheCommission.

42.RemunerationandexpensesofCommissioners.

43.Commissionerstodisclosecertainconnectionsandinterests.

44.NoinvalidityofdecisionsandactsoftheCommission.

45.ProceedingsoftheCommission.

46.DecisionsandordersoftheCommission.

47.Commissiontogivenoticetointerestedparties.

48.Commissiontoconsultexpertsontechnicalquestions.

49.QuestionsoflawmaybereferredtotheHighCourt.

50.RehearingandAppeals.

51.AnnualprogrammesandbudgetsofCommission.

52.FundsoftheCommission.

53.SurplusfundsoftheCommission.

54.FinancialyearoftheCommission.

55.AccountsoftheCommission.

56.AuditoftheCommission'saccounts.

57.Powersofauditors.

58.ExecutionofcontractsandinstrumentsbyCommission.

59.ReportsofCommission.

60.StaffofCommission.

61.ExemptionfromliabilityforCommission.

PartIV

LicencesandTariffs

62.Licensingrequirement:finesandpenalties.

63.Generaldutiesoflicensees.

64.Generallicences.

65.Transmissionlicences.

66.Systemoperationlicence.

67.Distributionlicences.

68.Tradinglicences.

69.Restrictionsonlicences.

70.Anapplicationforalicence.

71.Termsandconditionsoflicences.

72.Renewaloflicences.

73.Amendmentoflicences.

74.Cancellationoflicences.

75.Enforcementoflicences.

76.Tariffs.

PartV

AcquisitionofLandandAccessRights

77.Specialprovisionsrelatingtogeneration,transmissionanddistributioncompanies.

78.Useofcertainconduitsforelectricitypurposes.

79.Noticeofconstructionofrailways,roadsandtelecommunicationworksandcontrolofotherworks.

PartVI

ConsumerProtectionandLicenseePerformanceStandards

80.Consumerprotectionstandards.

81.Performancestandardsandcodes.

PartVII

CompetitionandMarketPower

82.Competitionandmarketpower.

PartVIII

ThePowerConsumerAssistanceFund

83.EstablishmentofthePowerConsumerAssistanceFund.

84.ContributionratesforthePowerConsumerAssistanceFund.

85.ContributionpaymentsforthePowerConsumerAssistanceFund.

86.PaymentsfromthePowerConsumerAssistanceFund.

87.Finefornonpaymentofmoneyowed.

PartIX

RuralElectrificationFund

88.EstablishmentandpurposeoftheRuralElectrificationFund.

89.Contributionratesforruralelectrification.

90.Contributionpaymentsforruralelectrification.

91.EstablishmentofcriteriaforgeographicalallocationofresourcesfromtheRuralElectrificationFund.

92.Finefornonpaymentforamountowed.

PARTX

Offences

93.Falsedeclarations.

94.Offences.

PARTXI

General

95.Inspectors.

96.Regulations.

97.Disclosureofconfidentialinformationanduseofinformationacquiredbyinspectors,etc.,forpersonalgain.

PARTXII

ConsequentialandTransitionalProvisions

98.Consequentialandtransitionalprovisions.

99.RepealofL.F.N.2004Cap.E7andL.F.N.2004Cap.N33.

PARTXIII

InterpretationandCitation

100.Interpretation.

101.Citation.

_________________________

ELECTRICPOWERSECTORREFORMACT

AnActtoprovidefortheformationofcompaniestotakeoverthefunctions,assets,liabilitiesandstaffoftheNationalElectricPowerAuthority,todevelopcompetitiveelectricitymarkets,toestablishtheNigeriaElectricityRegulatoryCommission;toprovideforthelicensingandregulationofthegeneration,transmission,distributionandsupplyofelectricity;toenforcesuchmattersasperformancestandards,consumerrightsandobligations;toprovideforthedeterminationoftariffs;andtoprovideformattersconnectedwithorincidentaltotheforegoing.

[]

[Commencement.]

PARTI

FormationofInitialandSuccessorCompaniesandthetransferofassets

andliabilitiesoftheNationalElectricPowerAuthority

1. FormationoftheinitialholdingcompanyNo.1of1990

TheNationalCouncilonPrivatisationshall,notlaterthansixmonthsafterthecomingintoforceofthissectionofthisAct,takesuchstepsasarenecessaryundertheCompaniesandAlliedMattersActtoincorporateacompany,limitedbyshares,whichshallbetheinitialholdingcompanyfortheassetsandliabilitiesoftheAuthority.

2. Shareholdingintheinitialholdingcompany

ThesharesoftheinitialholdingcompanyonitsincorporationshallbeheldbytheMinistryofFinanceIncorporatedandtheBureauofPublicEnterprisesinthenameofandonbehalfoftheFederalGovernmentofNigeria.

3. TransferofassetsandliabilitiesoftheAuthoritytotheinitialholdingcompany

(1)TheNationalCouncilonPrivatisation,shallbywrittennoticeinaGazettefixthedate,(inthisActknownasthe"initialtransferdate"),onwhichtheassetsandliabilitiesoftheAuthorityasspecifiedinsubsection(2)ofthissectionshallbetransferredtotheinitialholdingcompany.

(2)TheassetsandliabilitiesvestedintheAuthorityasattheinitialtransferdateandappearingontheauditedbalancesheetsoftheAuthority,shallvestintheinitialholdingcompany.

(3)Thevestingofassetsandliabilitiesundersubsection(2)ofthissectionshallbeprovisionaluntilfinalordersareissuedbytheNationalCouncilonPrivatisationunderthissection.

(4)Withineightmonthsfromtheinitialtransferdate,theNationalCouncilonPrivatisationshall,onthefinalisationoftheopeningbalancesheetoftheinitialholdingcompany,issuefinalordereitherconfirmingorspecifyingthetransferofassetsandliabilitiesundersubsection(2)andthisPartapplieswithnecessarymodificationstothefinalorder.

(5)ThetransferofaliabilityorobligationunderthissectionreleasestheAuthorityfromtheliabilityorobligation.

(6)Allbonds,hypothecations,securities,deeds,contracts,instruments,documentsandworkingarrangementsthatsubsistedimmediatelybeforetheinitialtransferdateandtowhichtheAuthoritywasapartyshall,onandafterthatdate,beasfullyeffectiveandenforceableagainstorinfavouroftheinitialholdingcompanyasif,insteadoftheAuthority,theinitialholdingcompanyhadbeennamedtherein.

(7)AnycauseofactionorproceedingwhichexistedorwaspendingbyoragainsttheAuthorityimmediatelybeforetheinitialtransferdateshallbeenforcedorcontinued,asthecasemaybe,onandafterthatdatebyoragainsttheinitialholdingcompanyinthesamewaythatitmighthavebeenenforcedorcontinuedbyoragainsttheAuthorityhadthisActnotbeenpassed.

(8)Noactionorotherproceedingshallbecommencedagainsttheinitialholdingcompanyinrespectofanyemployee,asset,liability,rightorobligationthathasbeentransferredtotheinitialholdingcompanyif,hadtherebeennotransfer,thetimeforcommencingtheactionorotherproceedingwouldhaveexpired.

(9)Atransferundersubsection(2)ofthissectionshallnotbedeemedto

(i) constituteabreach,termination,repudiationorfrustrationofanycontract, includingacontractofemploymentorinsurance;

(ii) constituteabreachofanyAct,regulationorbylaw;or

(iii) constituteanyeventofdefaultorforcemajeure;

(iv) giverisetoabreach,termination,repudiationorfrustrationofanylicence, permitorotherright;

(v) giverisetoanyrighttoterminateorrepudiateacontract,licence,permitor otherright;and

(vi) giverisetoanyestoppels.

(10)Subsection(9)ofthissectiondoesnotapplytothecontractsasmaybeprescribedbytheregulations.

(11)Subjecttosubsection(10)ofthissectionnothinginthisActandnothingdoneasaresultofatransferundersubsection(2)ofthissectionshallcreateanynewcauseofactioninfavourof

(a) aholderofadebtinstrumentthatwasissuedbythe Authoritybeforetheinitial transferdate;

(b) apartytoacontractwiththeAuthoritythatwasentered intobeforetheinitial transferdate.

(12)AnyguaranteeorsuretyshipwhichwasgivenormadebytheFederalGovernmentofNigeriaoranyotherpersoninrespectofanydebtorobligationoftheAuthority,andwhichwaseffectiveimmediatelybeforetheinitialtransferoftheprincipaldebtorobligation,shallremainfullyeffectiveagainsttheguarantororsuretyonandaftertheinitialtransferdateinrelationtotherepaymentofthedebtortheperformanceoftheobligation,asthecasemaybe,bytheinitialholdingcompanytowhichtheprincipaldebtorobligationwastransferred.

4. Exemptionfromstampduty

StampdutyshallnotbechargeableundertheStampDutiesActinrespectofanytransfermadeortransactionenteredintopursuanttothisPartonwhich,exceptfortheexemptiongrantedunderthissection,stampdutywouldhavebeenpayableandinparticular,andwithoutderogationfromtheforegoing,nostampdutyshallbechargeable

[L.F.N.2004Cap.S8.]

(a) duringtheincorporationoftheinitialholdingcompanyandthesuccessorcompaniesorany subsequentincreasetotheirauthorisedsharecapital,priortothetransferofamajorityinterest tooneormoreprivateinvestors;

(b) inrespectofanysecurityissuedincompliancewithatransferorderissuedundersection10(7);

(c) whereanyconvertiblesecuritieswereissuedincompliancewithatransferorderissuedunder section10(7), inrespectoftheexerciseoftheconversionrightsattachedtoanysuchsecurity; or

(d) inrespectofanyothertransferofrightsandassetspursuanttothisPart.

5. TransferofemployeestotheinitialholdingcompanyandtotheCommission,etc.

(1)Witheffectfromtheinitialtransferdate,everypersonemployedbytheAuthorityimmediatelybeforethatdateshallbetransferredtotheserviceofeithertheCommissionortheinitialholdingcompany,ontermsnotlessfavourablethanthoseenjoyedbyhimimmediatelypriortohistransfer.

(2)Theservicerenderedbyanemployeetransferredpursuanttosubsection(1)ofthissectiontotheAuthorityshallbedeemedtobeservicewiththeinitialholdingcompanyforthepurposeofdeterminingemploymentrelatedentitlementsasspecifiedinrelevantlawsofemploymentinNigeria.

(3)UntilsuchtimeasconditionsofservicearedrawnunbytheinitialholdingcompanyortheCommission,asthecasemaybe

(a) thetermsandconditionsofserviceapplicabletoemployeesoftheAuthorityshall continuetoapplytoeverypersontransferredtotheinitialholdingcompanyortothe CommissionasifeverysuchpersonwerestillintheserviceoftheAuthority;and

(b) theinitialholdingcompanyshallcontinuetocontributetowardsapensionschemetowhichthe Authoritywas contributinginrespectofpersonsintheemployofthe Authority,priortothe initialtransferdate.

6. DirectionstotheAuthority

(1)TheNationalCouncilonPrivatisationmaygivetheBoardofDirectorsoftheAuthoritydirectionsinwritinginordertoensurethepropertransferoftheassetsandliabilitiesoftheAuthoritytotheinitialholdingcompany,andtheBoardofDirectorsshall,withoutdelay,complywitheverysuchdirection.

(2)Withoutderogationfromsubsection(1)ofthissection,directionsgivenunderthatsubsectionmayprovidefor

(a) thecessationofalloranyofthefunctionsoftheAuthority;

(b) theterminationofanycontractenteredintobetweentheAuthorityandanyperson, providedthatnosuchdirectionshallauthorisetheAuthoritytocommitanunlawful breachofanysuchcontract;and

(c) theproductionofanyreportandtheprovisionofanyinformationconcerningthe conductoftheAuthorityortheBoardofDirectorsoftheAuthorityoranythingdoneby oronbehalfoftheAuthorityortheBoardofDirectorsoftheAuthority.

7. Licensingoftheinitialholdingcompany

Ontheinitialtransferdate,theCommissionshallissueaninterimlicence,totheinitialholdingcompanywhichshallbevalidforaperiodnotexceedingeighteenmonths.

8. Formationofsuccessorcompanies

TheNationalCouncilonPrivatisationshall,notlaterthaneightmonthsaftertheformationoftheinitialholdingcompanyundersection1ofthisAct,takesuchstepsasarenecessaryundertheCompaniesandAlliedMattersActtoincorporatesuchnumberofadditionalcompanies,limitedbyshares,astheNationalCouncilonPrivatisationmaydeemappropriate,whichshallbethesuccessorcompaniesforassumingtheassetsandliabilitiesoftheinitialholdingcompanyincluding,butnotlimitedto,companieswithfunctionsrelatingtothegeneration,transmission,trading,distributionandbulksupplyandresaleofelectricity.

9. Shareholdingsinthesuccessorcompanies

AlltherespectivesharesofeachofthesuccessorcompaniesfromthedatesoftheirincorporationshallbeheldjointlyinthenameoftheMinistryofFinanceIncorporatedandtheBureauofPublicEnterprisesforandonbehalfoftheFederalGovernmentofNigeria.

10. Transferofassetsandliabilitiesoftheinitialholdingcompanytothesuccessorcompanies

(1)TheNationalCouncilonPrivatisationshall,notlaterthanoneyearfromtheinitialtransferdate,byanorder,requiretheinitialholdingcompanytotransferemployees,assets,liabilities,rightsandobligationsoftheinitialholdingcompanytoasuccessorcompany,asspecifiedintheorder.

(2)Atransferordershallbebindingontheinitialholdingcompany,thetransfereeandallotherpersons.

(3)Subsection(2)ofthissectionappliesdespiteanygeneralorspecialActoranyruleoflaw,includinganActorruleoflawthatrequiresnoticeorregistrationoftransfers.

(4)Atransferordershallnotrequiretheconsentoftheinitialholdingcompanyorthesuccessorcompany,providedthatconsentofthetransfereeshallberequiredifthetransfereeisapersonotherthanasuccessorcompanyincorporatedbytheNationalCouncilonPrivatisationundersection8.

(5)Atransferordermayspecifyanddescribe,employees,assets,liabilities,rightsorobligationstobetransferred

(a) byreferencetospecifyemployees,assets,liabilities,rightsorobligations;

(b) byreferencetoanyclassofemployees,assets,liabilities,rightsorobligations;or

(c) partlyinaccordancewithsubsection(5)(a)ofthissectionandpartlyinaccordancewith subsection(5)(b)ofthissection.

(6)Witheffectfromthedatespecifiedintherelevanttransferorder,allbonds,hypothecations,securities,deeds,contracts,instruments,documentsandworkingarrangementsthatsubsistedimmediatelybeforethesubsequenttransferdateandtowhichtheinitialholdingcompanywasapartyshall,onandafterthatdate,beasfullyeffectiveandenforceableagainstorinfavourofthedesignatedsuccessorcompanyasif,insteadoftheinitialholdingcompany,thedesignatedsuccessorcompanyhadbeennamedtherein.

(7)Atransferordermay

(a) requiretheinitialholdingcompanyorthetransfereetopayforanythingtransferredby orpursuanttotheorderandmayspecifytowhomthepaymentshallbemade;

(b) fixtheamountofthepayment;specifyamethodfordeterminingtheamountofthe payment;orprovidethattheamountofthepaymentbedeterminedbytheNational CouncilonPrivatisationorapersondesignatedbytheNationalCouncilonPrivatisation;

(c) requirethatthepaymentbemadeincash,bysetoff,throughtheissuanceofsecurities orinanyotherformspecifiedbytheorder;

(d) fixthevalueofanythingtransferredbyorpursuanttotheorder;

(e) specifyamethodconsistentwithinternationalaccountingpracticesfordeterminingthe valueofanythingtransferredbyorpursuanttotheorder;

(f) providethatthevalueofanythingtransferredbyorpursuanttotheorderbe determinedbytheNationalCouncilonPrivatisationorapersondesignatedbythe NationalCouncilonPrivatisationinamannerconsistentwithinternationalaccounting practices;providedthatthevaluespecifiedinthetransferorderoughttohavebeen calculatedinaccordancewithinternationalaccountingpractices;

(g) specifythedatethatatransfertakeseffectandanyinterestinpropertythatis transferredbytheordervestsinthetransfereeonthatdate;

(h) providethatatransfershallnottakeeffectuntilpaymenthasbeenmadeforanything transferredbyorpursuanttotheorder;

(i) providethatatransfershallbedeemedtohavetakeneffectonadateearlierthanthe datethetransferorderismade,buttheeffectivedateshallnotbeearlierthantheday onwhichtherelevantsuccessorcompanywasformed;

(j) providethattransfersspecifiedintheorderandothertransactionsassociatedwiththe transfersshallbedeemedtohaveoccurredinasequenceandattimesspecifiedinthe order;

(k) requiretheinitialholdingcompanyoratransferee

(i) toenterintoanywrittenagreementorexecuteanyinstrumentspecifiedin theorder;and

(ii) toregisterinaccordancewiththeorderanyagreementorinstrumententered intoorexecutedundersubsection(7)(k)(i);

(l) providethatanyliabilityorobligationthatistransferredbytheordermaybe enforcedagainsttheinitialholdingcompany,thetransferee,orbothofthem; andthatanyrightthatistransferredbytheordermaybeenforcedbytheinitial holdingcompany,thetransferee,orbothofthem;or

(m) imposeconditionsontheexerciseofpowersbythetransfereethatarerelatedto employees,assets,liabilities,rightsorobligationstransferredbythetransferorder, includingaconditionthatthepowersbeexercisedonlywiththeapprovalofthe Commission.

(8)AtransferordermaycontainprovisionsdealingwithothermattersnotspecificallyreferredtointhisPartthattheNationalCouncilonPrivatisationconsidersnecessaryoradvisableinconnectionwithatransfer.

11. Conclusiveevidence

(1)Astatement,inaregistereddocumenttowhichasuccessorcompanyisaparty,thatlanddescribedinthedocumentwastransferredtothepersonfromtheinitialholdingcompanybyorpursuanttoatransferorder,andanyotherstatementinthedocumentrelatingtothetransferorder,shallbedeemedtobeconclusiveevidenceofthefactsstated.

(2)Nothinginsubsection(1)ofthissectioncreates,foranyperson,aninterestinlandthattheinitialholdingcompanydidnothave.

12. Releasefromliabilityorobligation

Subjecttosection10(7)(I),thetransferofaliabilityorobligationunderthisPartreleasestheinitialholdingcompanyfromtheliabilityorobligation.

13. Enforcementorcontinuationofanycauseofactionorproceedings

Subjecttosection10(7)(I),anycauseofactionorproceedingwhichexistedorwaspendingbyoragainsttheinitialholdingcompanyimmediatelybeforethesubsequenttransferdateshallbeenforcedorcontinued,asthecasemaybe,onorafterthesubsequenttransferdatebyoragainstthedesignatedsuccessorcompanyinthesamewaythatitmighthavebeenenforcedorcontinuedbyoragainsttheinitialholdingcompany.

14. Limitationofsuitagainstatransferee

Anactionorotherproceedingshallnotbecommencedagainstatransfereeinrespectofanyemployee,asset,liability,rightorobligationthathadbeentransferredtothetransfereeif,hadtherebeennotransfer,thetimeforcommencingtheactionorotherproceedingwouldhaveexpired.

15. Atransfershallnotbedeemedtoconstituteabreachetc.,ofcontract

(1)Atransferbyorpursuanttoatransferordershallnotbedeemedto

(a) constituteabreach,termination,repudiationorfrustrationofanycontract,includinga contractofemploymentorinsurance;

(b) constituteabreachofanyAct,regulationorbylaw;

(c) constituteanyeventofdefaultorforcemajeure;

(d) giverisetoabreach,termination,repudiationorfrustrationofanylicence,permitor otherright;

(e) giverisetoanyrighttoterminateorrepudiateacontract,licence,permitorotherright; or

(f) giverisetoanyestoppels.

(2)Subsection(1)ofthissectiondoesnotapplytosuchcontractsasmaybeprescribedbytheregulations.

(3)Subjecttosubsection(2)ofthissection,nothinginthisActandnothingdonebyorpursuanttoatransferordercreatesanynewcauseofactioninfavourof

(a) aholderofadebtinstrumentthatwasissuedbytheinitialholdingcompany(ordeemed tohavebeenissuedbyit)beforethedateofitstransferasspecifiedintherelevant transferorder;

(b) apartytoacontractwiththeinitialholdingcompany(ordeemedtohavebeenissued byitundersection4(5)thatwasenteredintobeforethedateofitstransferasspecified intherelevanttransferorder.

16. Provisionofrecordsetc.,toatransferee

Theinitialholdingcompanyshallprovideatransfereewithallrecordsorcopiesofrecords,thatareinitscustodyorcontrolandthatrelatetoanofficer,employee,asset,liability,rightorobligationthatistransferredbyorpursuanttoatransferorder,includingpersonalinformation.

17. Furtherorderamendingatransferorder

TheNationalCouncilonPrivatisationmay,atanytimewithinoneyearaftermakingatransferorder,makeafurtherorderamendingthetransferorderinanywaythattheNationalCouncilonPrivatisationconsidersnecessaryoradvisable,includingsuchorderorordersasmaybenecessarytorectifythetransferofanyoftheemployees,assets,liabilities,rightsandobligationspursuanttoaverificationoranauditofemployees,assetsandliabilitiesoftheinitialholdingcompanyasatthedateoftherelevanttransferorder,andthisPartapplieswithnecessarymodificationstotheamendment.

18. Regulations

(1)TheNationalCouncilonPrivatisationmaymakeregulations

(a) supplementingtheprovisionsofthisPartandgoverningthetransferof,employees, assets,liabilities,rights,andobligationsunderthisPart;

(b) prescribingcontractsorclassesofcontractstowhichsection15(1)doesnotapply, subjecttosuchconditionsorrestrictionsasmaybeprescribedbytheregulations.

(2)Aregulationmadeunderthissectionmaybegeneralorparticularinitsapplication.

19. Guaranteeorsurety

Anyguaranteeorsuretyshipwhichwasgivenormade(orisdeemedtobegivenormadeundersection3(12)bytheFederalGovernmentofNigeriaoranyotherpersoninrespectofanydebtorobligationoftheinitialholdingcompany,andwhichwaseffectiveimmediatelybeforethesubsequenttransferoftheprincipaldebtorobligation,shallremainfullyeffectiveagainsttheguarantororsuretyonorafterthesubsequenttransferdateinrelationtotherepaymentofthedebtortheperformanceoftheobligation,asthecasemaybe,bythedesignatedsuccessorcompanytowhichtheprincipaldebtorobligationwastransferred.

20. Considerationforthetransferofassetstosuccessorcompanies

Theconsiderationforthetransferofassetsoftheinitialholdingcompanytoadesignatedsuccessorcompanyshallbeassetoutinatransferorderissuedundersection10(7).

21. Transferofemployeestothedesignatedsuccessorcompaniesandconditionsofservicesoftransferredemployees

(1)Everypersonemployedbytheinitialholdingcompanyimmediatelybeforethedatespecifiedintherelevanttransferorderpursuanttowhichheistransferredshallbetransferredtotheserviceofadesignatedsuccessorcompany,ontermsnotlessfavourablethanthoseenjoyedbyhimimmediatelypriortothetransfer.

(2)TheservicerenderedbyanemployeetransferredpursuanttoatransferordershallbetheservicewiththedesignatedsuccessorcompanyforthepurposeofdeterminingemploymentrelatedentitlementsasspecifiedbyrelevantlawsofemploymentinNigeria.

(3)Untilsuchtimeasconditionsofservicearedrawnupbythedesignatedsuccessorcompany

(a) thetermsandconditionsofserviceapplicabletoemployeesoftheinitialholding companyshallcontinuetoapplytoeverypersontransferredtothedesignated successorcompanyasifeverysuchpersonwerestillintheserviceoftheinitialholding company;and

(b) anemployeemaybepermittedtocontinuetocontributetowardsapensionhe wascontributingtowhenhewasintheemployoftheinitialholdingcompany;and

(c) thedesignatedsuccessorcompanyshallcontinuetocontributetowardsapension schemetowhichtheinitialholdingcompanywascontributinginrespectofemployees intheemployoftheinitialholdingcompany,priortothedateoftransfer.

22. Directionstotheinitialholdingcompany

(1)TheNationalCouncilonPrivatisationmaygivetheBoardofDirectorsoftheinitialholdingcompanydirectionsinwritinginordertoensurethepropertransferoftheassetsandliabilitiesoftheinitialholdingcompanytothedesignedsuccessorcompaniesorothertransferees,andtheBoardofDirectorsshall,withoutdelay,complywitheverysuchdirection.

(2)Withoutderogationfromsubsection(1),directionsgivenunderthatsubsectionmayprovidefor

(a) thecessationofanyorallfunctionsoftheinitialholdingcompanyanditsvoluntary liquidation;

(b) theterminationofanycontractenteredintobetweentheinitialholdingcompanyandany person,providedthatnosuchdirectionshallauthorisetheinitialholdingcompanytocommitan unlawfulbreachofanysuchcontract;and

(c) theproductionofanyreportandtheprovisionofanyinformationconcerningtheconductofthe initialholdingcompanyortheBoardofDirectorsoftheinitialholdingcompanyoranything donebyoronbehalfoftheinitialholdingcompanyoftheBoardofDirectorsoftheinitial holdingcompany.

23. Licensingofthesuccessorcompanies

(1)Onthetransferdatespecifiedintherelevanttransferorder,theCommissionshallissueanappropriateinterimlicence,toeachsuccessorcompany,whichshallbevalidforaperiodnotexceedingoneyear.

(2)Asuccessorcompanythathasreceivedaninterimlicenceundersubsection(1)shall,withinsixmonthsthereafter,applytotheCommissionforaregularlicenceinaccordancewiththeprovisionsofPartIVofthisAct.

24. PrivatisationAct

(1)TheNationalCouncilonPrivatisationmay,atanytimeandbysuchmeansasitdeemsappropriate,begintheprocessofprivatisationofthesuccessorcompaniesthatareholdersofgenerationlicences,distributionlicencesoratransmissionlicence,inaccordancewiththeprovisionsofthePublicEnterprises(PrivatisationandCommercialisation)Act,No.28of1999.

[L.F.N.2004Cap.P38.]

(2)UntilsuchtimetheMinisterhasmadeadeclarationinaccordancewithsubsection(3)ofthissection,theCommissionshallprepare,eachyear,areportfortheMinisterastothepotentialforcompetitionintheNigerianelectricitysupplyindustryandthesereportsshallpresenttheCommission'sanalysisandrecommendationsastowhethertheNigerianelectricitysupplyindustryhasdevelopedtothepointwhereamorecompetitivemarketoughttobeestablishedundersection26,havingregardto

(a) thedegreeofprivatisationthathasoccurred;

(b) theexistenceofasufficientlylargenumberofpotentiallycompetitiveentities,soasto avoidthelikelihoodofanabusivemarketpower;and

(c) theexistenceofotherpreconditions,includingthenecessarymeteringandinformation technologyinfrastructures,requiredfortheoperationofamorecompetitiveelectricity market.

(3)TheMinistershallpresenttothePresidentandtheNationalCouncilonPrivatisationandNationalAssembly,eachreportsubmittedbytheCommissionundersubsection(2)ofthissectionandwhentheMinister,inconsultationwiththePresidentandtheNationalCouncilonPrivatisationissatisfiedthattheelectricitymarketinNigeriahasdevelopedtothepointwhereamorecompetitivemarketoughttobeestablishedpursuanttosection26ofthisAct,havingregardtothecriteriadescribedinsubsections(a),(b),and(c)ofsubsection(2)ofthissection,andtheMinistershallissueadeclarationthatamorecompetitiveelectricitymarketistobeinitiated.

PARTII

DevelopmentofaCompetitiveElectricityMarket

25. Competitionduringthepreprivatisationstage

Immediatelyfollowingtheissuanceofinterimlicencestothesuccessorcompaniesinaccordancewithsection23,andpriortothedeclarationbytheMinister,undersection24(3),thatamorecompetitivemarketistobeinitiated

(a) thetradinglicenseeholdingabulkpurchaseandresalelicenceundersection67(2),oran interimlicenceforthispurpose,andtowhichthefunctionofbulkprocurementandbulksaleof powerandancillaryserviceshasbeentransferredpursuanttoPartIofthisAct,shallengagein thepurchaseandresaleofelectricalpowerandancillaryservicesfromindependentpower producersandfromthesuccessorgenerationcompanies,inaccordancewithitslicence;

(b) thesuccessorcompanythathasbeenissuedbothatransmissionlicenceandasystemoperation licencepursuanttosection65(2),oraninterimlicenceforthesepurposes,shallengageinthe transmissionofelectricityandinsystemoperation,includingtheprocurementofancillary services,inaccordancewithitslicence;

(c) successorgenerationcompaniesshall,inaccordancewiththeirlicences,sellelectricalpowerto thetradinglicenseedescribedinsubsection(a),distributioncompaniesandeligiblecustomers, pursuanttothetermsofanycontractsformedwithsuchdistributioncompaniesandeligible customers;

(d) successorgenerationcompaniesshall,inaccordancewiththeirlicences,sellancillaryservicesto thetradinglicenseedescribedinsubsection(a)orthesuccessorcompanyidentifiedin subsection(b),pursuanttocontractsthatallowforthenovationoftherightsandobligationsof thesuccessorcompanyidentifiedinsubsection(b)toanindependentsystemoperatorinevent ofatransferoftheobligationofsystemoperationbythesuccessorcompanytoanindependent systemoperatorundersection26(7);

(e) independentpowerproducersshall,inaccordancewiththeirlicences,sellelectricalpowerto either

(i) thetradinglicenseedescribedinsubsection(a)pursuanttocontractsthatallowforthe novationoftherightsandobligationsofthetradinglicenseedescribedinsubsection(a) toonemoreotherlicensees,asspecifiedinthecontract,followingthedeclarationofa substantiallyprivatisedmarketundersection24;or

(ii) distributioncompaniesandeligiblecustomers,pursuanttothetermsofanycontracts formedwithsuchdistributioncompaniesandeligiblecustomers;

(f) independentpowerproducersshall,inaccordancewiththeirlicences,sellancillaryservicesto either

(i) thetradinglicenseedescribedinsubsection(a),pursuanttocontractsthatallowforthe novationoftherightsandobligationsofthetradinglicenseedescribedinsubsection(a) tooneormoreotherlicensees,asspecifiedinthecontract,followingthedeclarationof asubstantiallyprivatisedmarketundersection24;or

(ii) thesuccessorcompanyidentifiedinsubsection(b),pursuanttocontractsthatallowfor thenovationoftherightsandobligationsofthesuccessorcompanyidentifiedin subsection(b)toanindependentsystemoperatorintheeventofatransferofthe obligationofsystemoperationbythesuccessorcompanytoanindependentsystem operatorundersection26(7).

26. Competitionduringthepostprivatisationstage

(1)ImmediatelyfollowingthedeclarationbytheMinister,undersection24(3),thatmorecompetitivemarketistobeinitiated

(a) thetradinglicenseedescribedinsection25(a)shallnotenterintoanyfurthercontracts forthepurchaseofelectricalpowerorancillaryservicesanditshall,inaccordancewith itslicence,begintheprocessofnovatingitsexistingrightsandobligationstopurchase electricalpowerandancillaryservicestootherlicensees;

(b) successorgenerationcompaniesshall,inaccordancewiththeirlicences,sellelectrical powertodistributioncompaniesandeligiblecustomers,underthetermsofany contractsexistingpriortothedeclarationbytheMinister,pursuanttosection24(3),or underthetermsofanynewcontractswithdistributioncompaniesandeligible customers;

(c) successorgenerationcompaniesshall,inaccordancewiththeirlicenses,sellancillary serviceseitherto

(i) thesuccessorcompanyidentifiedinsection25(b),underthetermsofthe contractsenteredintopriortothedeclarationbytheMinister,undersection24 (3),untilsuchcontractsarenovatedtoanindependentsystemoperator,or underthetermsofanynewcontractswithsuchsuccessorcompany;provided thatsuchcontractshouldallowfornovationtotheindependentsystem operatorinthesamemannerasspecifiedinsection25(d);or

(ii) theindependentsystemoperator,onceithasbeenestablishedundersection 25(d);

(d) independentpowerproducersshall,inaccordancewiththeirlicences,sellelectrical power

(i) tothetradinglicenseedescribedinsection25(a),underthetermsofthe contractsformedwiththattradinglicenseepriortoadeclarationbythe Minister,undersection24(3),untilsuchcontractsarenovatedtodistribution companiesoreligiblecustomers;and,followingsuchnovations;

(ii) todistributioncompaniesandeligiblecustomersunderthetermsofany contractsformedwithsuchdistributioncompaniesandeligiblecustomers;

(e) independentpowerproducersshall,inaccordancewiththeirlicences,sellancillary services

(i) tothetradinglicenseedescribedinsection25(a),underthetermsofthe contractsformedwiththattradinglicenseepriortothedeclarationbythe Ministerundersection24(3),untilsuchcontractsarenovatedtodistribution companiesoreligiblecustomers;and,followingsuchnovations;

(ii) tothesuccessorcompanyidentifiedinsection25(b),underthetermsofthe contractsenteredintopriortothedeclarationbytheMinisterundersection24

(3),untilsuchcontractsarenovatedtoanindependentsystemoperator,or underthetermsofanynewcontractswithsuchsuccessorcompany;provided thatsuchcontractsshouldallowfornovationtotheindependentsystem operatorinthesamemannerasspecifiedinsection25(d);or

(iii) theindependentsystemoperator,onceithasbeenestablishedunder subsection(7)ofthissection;

(f) thesuccessorcompanyidentifiedinsubsection(1)(b)ofthissectionshall,inaccordance withitslicence,purchaseancillaryservicespursuanttothetermsofthecontractsfor ancillaryservicesthatithasenteredintowithsuccessorgeneratingcompaniesandwith thetradinglicenseedescribedinsubsection(1)(a)ofthissectionandwithindependent powerproducerspriortothedeclarationundersection24anditmayalsopurchase ancillaryservicesunderthetermsofcontractsnovatedtoitundersection25(d)(i),until allsuchcontractsarenovatedtoanindependentsystemoperatorestablishedpursuant tosubsection(7)ofthissection;

(g) distributionlicenseesshallpurchaseelectricalpowerinaccordancewiththeir obligationstopurchaseundersubsection(1)(b)and(d)ofthissectionandpursuantto thoseobligationsthathavebeennovatedtothemundersubsection(1)(a)ofthis section,andmayalsopurchaseothersuppliesofpowerfromgenerationlicenseesand tradinglicensees,allinaccordancewiththetermsoftheirrespectivedistribution licences;and

(h) eligiblecustomersshallpurchasepowerinaccordancewiththeirobligationsto purchaseundersubsection(1)(b)and(d)ofthissectionandpursuanttothose obligationsthathavebeennovatedtothemundersubsection(1)(a)ofthissection,and mayalsopurchaseothersuppliesandpowersfromgenerationlicenseesorfromtrading licensees.

(2) TheMinistershallrecommendtothePresidentforapprovalofmarketrules,tobedevelopedbythesystemoperator

(a) fortheoperationofthenationalgridbythesystemoperator;and

(b)fortheestablishmentandgovernanceofmarketsrelatedtoelectricityandancillary

(3)Inrespectofmarketsforelectricityandancillaryservices,themarketrulesmayincludeprovisions

(a) governingthemakingandpublicationofmarketrules;

(b) settlementofpaymentsamongdifferentparticipants;

(c) authorisingandgoverningthemakingofordersbythesystemoperator,including orders

(i) imposingfinancialpenaltiesonmarketparticipants;

(ii) authorisingapersontoparticipateinthemarkets;or

(iii) terminating,suspendingorrestrictingaperson'srightstoparticipateinthe markets;and

(d) concerningtheadministrationandenforcementofthemarketrules,including provisionsformarketruleamendments,disputeresolutions,penaltiesandmarket surveillance.

(4)Amarketrulemaybegeneralorparticularinitsapplication.

(5)Thesystemoperatorshallpublishthemarketrulesinaccordancewiththepublicationprovisionswithinthemarketrulesandshallmakethemarketrulesavailableforpublicinspectionduringnormalbusinesshoursattheofficesofthesystemoperator.

(6)Amendmentstothemarketrulesshallbedevelopedbythesystemoperatorinaccordancewiththeamendmentprovisionsinthemarketrules;providedthatallamendmentsshallbeapprovedbytheCommissionbeforetheycomeintoforceandprovidedthatthesystemoperatorshall,inaccordancewiththemarketrules,publishanyproposedamendmenttothemarketrulesatleast22daysbeforetheproposedamendmentcomesintoforce.

(7)Atanytimefollowingthedeclarationofasubstantiallyprivatisedmarketundersection24,thesuccessorcompanyidentifiedinsection25(b)maytransferthefunctionofsystemoperationtoanindependentsystemoperatoronsuchtermsandconditionsastheCommissionmaydirectandonsuchtransfer,theindependentsystemoperatorshallbesubjecttothesamepowersanddutiesashavebeenimposedonthetransferringsuccessorcompanyunderthisActinrelationthesystemoperation.

27. Eligiblecustomers

TheMinistermayissueadirectivetotheCommissionspecifyingtheclassorclassesofendusecustomersthat,fromtimetotime,shallconstituteeligiblecustomersunderthisAct.

28. Ministerialdirectivesrespectingcompetitiontransitioncharges

IftheMinisterdetermines,followingconsultationwiththePresident,thatadirectivegivenundersection27willresultindecreasingelectricitypricestosuchanextentthatatradinglicenseeoradistributionlicenseewouldhaveinadequaterevenuetoenablepaymentforitscommittedexpendituresorisunabletoearnpermittedratesofreturnonitsassets,despiteitsefficientmanagement,the

MinistermayissuefurtherdirectivestotheCommissiononthecollectionofacompetitiontransitionchargesfromconsumersandeligiblecustomers,thedistributionofthefundscollectedtothetradinglicenseedescribedinsection25(a)andtodistributionlicensees,andthedurationofthecompetitiontransitioncharge.

29. Commission'sdeterminationsrespectingcompetitiontransitioncharges

TheCommissionshallestablishtheamountofthecompetitiontransitionchargeandthearrangementsforthecollectionanddistributionofthecompetitiontransitioncharge,allinaccordancewiththeMinister'sdirectiveordirectivesissuedundersection28.

30. Publichearingrespectingcompetitiontransitioncharges

Priortothemakingofthedeterminationssetoutinsection29,theCommissionshallholdapublichearingtoobtaintheviewofanyinterestedparties.

PARTIII

Establishment,functionsandpowersoftheNigerianElectricityRegulatoryCommission

31. EstablishmentoftheCommission

(1)ThereisherebyestablishedacommissiontobeknownastheNigerianElectricityRegulatoryCommission,whichshallbeabodycorporatewithperpetualsuccessionwhichcansueorbesuedinitscorporatenameandsubjecttothisAct,performallactsthatbodiescorporatemaybylawperform.

(2)TheheadquartersoftheCommissionshallbeatAbuja.

32. ObjectsandfunctionsoftheCommission

(1)SubjecttothisAct,theCommissionshallhavethefollowingprincipalobjects

(a) tocreate,promote,andpreserveefficientindustryandmarketstructures,andtoensure theoptimalutilisationofresourcesfortheprovisionofelectricityservices;

(b) tomaximiseaccesstoelectricityservices,bypromotingandfacilitatingconsumer connectionstodistributionsystemsinbothruralandurbanareas;

(c) toensurethatanadequatesupplyofelectricityisavailabletoconsumers;

(d) toensurethatthepriceschargedbylicenseesarefairtoconsumersandaresufficientto allowthelicenseestofinancetheiractivitiesandtoallowforreasonableearningsfor efficientoperation;

(e) toensurethesafety,security,reliability,andqualityofserviceintheproductionand deliveryofelectricitytoconsumers;

(f) toensurethatregulationisfairandbalancedforlicensees,consumers,investors,and otherstakeholders;and

(g) activities.topresentquarterlyreportstothePresidentandNationalAssemblyonits activities.

(2)Forthefurtheranceoftheobjectsreferredtoinsubsection(1)ofthissection,theCommissionshallperformthefollowingfunctions

(a) promotecompetitionandprivatesectorparticipation,whenandwherefeasible;

(b) establishor,asthecasemaybe,approveappropriateoperatingcodesandsafety, security,reliability,andqualitystandards;

(c) establishappropriateconsumerrightsandobligationsregardingtheprovisionanduse ofelectricservices;

(d) licenseandregulatepersonsengagedinthegeneration,transmission,systemoperation, distribution,andtradingofelectricity;

(e) approveamendmentstothemarketrules;

(f) monitortheoperationoftheelectricitymarket;and

(g) undertakesuchotheractivitieswhicharenecessaryorconvenientforthebetter carryingoutoforgivingeffecttotheobjectsoftheCommission.

3)Inthedischargeofitsfunctions,theCommissionshallconsult,fromtimetotime,andtotheextenttheCommissionconsidersappropriate,suchpersonsorgroupsofpersonswhomayorarelikelytobeeffectedbythedecisionsorordersoftheCommissionincluding,butnotlimitedtolicensees,consumers,potentialinvestors,andotherinterestedparties.

33. Generalpolicydirections

TheMinistermayissuegeneralpolicydirectionstotheCommissiononmattersconcerningelectricity,includingdirectionsonoverallsystemplanningandcoordination,whichtheCommissionshalltakeintoconsiderationindischargingitsfunctionsundersection32(2):providedthatsuchdirectionsarenotinconflictwiththisActortheConstitutionoftheFederalRepublicofNigeria.

34. AppointmentofCommissioners

(1)Subjecttosubsections(2)and(3)ofthissection,theCommissionshallconsistofsevenfulltimeCommissionersappointedbythePresidentsubjecttoconfirmationbytheSenate.

(2)Inselectingpotentialnominees,thePresidentshallensurethatindividualsarechosen,fromboththepublicandprivatesectors,fortheirexperienceorprofessionalqualificationsinthefollowingfieldsorareasofcompetence

(a) generation,transmission,systemoperation,distributionormarketingofelectricity;and

(b) law,accountancy,economics,financeoradministration.

(3)ThesevenCommissionersshallbeappointedtoreflectoneCommissionerpergeopoliticalzoneandachairmanfromanyzone.

35. TermsofofficeandconditionsofserviceofCommissioners

(1)SubjecttothisPart,aCommissionershallholdofficeforaperiodoffiveyears;providedthat,toensurecontinuityintheCommission,theperiodofappointmentofthefirstsevenCommissionersshallbeasfollows

(a) theChairmanshallbeappointedforfiveyears;

(b) theViceChairmanandotherCommissionersshallbeappointedforfouryears.

(2)ACommissionershallnotcontinueinofficeaftertheexpiryofhisterm.

(3)Subjecttosection36,aCommissionershallholdofficeonsuchtermsandconditionsasthePresidentmayfixinrelationtoCommissionersgenerally.

(4)ACommissionerwhosetermofofficehasexpirediseligibleforreappointmentforanothertermandnomore.

(5)AllappointmentsorreappointmentsofCommissionersshallbemadebeforeexpiryoftheirtermofofficeinaccordancewithsection34ofthisAct.

36. ConditionsforappointmentasCommissioner

(1)ApersonshallnotbeappointedasaCommissionerwho

(a) isneitheracitizenofNigerianorpermanentlyresidentinNigeria;or

(b) hasafinancialinterestinanybusinessconnected,eitherdirectlyorindirectly,withgeneration,transmission,systemoperation,distributionortradingofelectricityinNigeria,orisengagedinanyactivity(whetherforremunerationorotherwise)

connectedwithanysuchserviceorsystem,orisarelativeofapersonwhohassuchaninterestorisengagedinsuchanactivity,unlessthePresidentissatisfiedthattheinterestoractivityisineffectpassiveandwillnotinterferewiththeperson'simpartialdischargeofhisdutiesasaCommissioner,orunlessthefinancialinterestisterminatedpriortotheappointmenttakingeffect;or

(c) has,intermsofalawinforceinanycountry

(i) beenadjudgedorotherwisedeclaredinsolventorbankruptandhasnotbeenrehabilitatedordischarged;or

(ii) madeanassignmentto,orarrangementorcompositionwith,hiscreditorswhichhasnotbeenrescindedorsetaside;or

(d) has,intermsofalawinforceinanycountry

(i) beenadjudged,byacourtofcompetentjurisdiction,tobeofunsoundmind;

(ii) beenbannedfrompracticinghisprofession;or

(iii) beenconvictedofanoffenceandsentencedtoatermofimprisonmentimposedwithorwithouttheoptionofafine,whetherornotanyportionhasbeensuspended,andhasnotreceivedafreepardon.

(2)ApersonwhoholdstheofficeofCommissioner,andforaperiodoftwoyearsafterheceasestobeaCommissionerforanyreasonwhatsoever,shallnotacquire,holdormaintain,directlyorindirectly,anyinterest,office,employmentorconsultancyarrangements,eitherforremunerationorotherwise,connectedwiththegeneration,transmission,systemoperation,distributionortradingofelectricityinNigeriaoranyactivityconnectedwithanysuchserviceorsystemandifsuchpersonacquiresanysuchinterestinvoluntarilyorbywayofsuccessionortestamentarydisposition,heshalldivesthimselffromsuchinterestwithinaperiodofthreemonthsofsuchinterestbeingacquired.

37. VacationofofficebyCommissioner

ACommissionershallvacatehisofficeandhisofficeshallbecomevacant

(a) threemonthsafterthedateuponwhichhegivesnoticeinwritingtothePresidentofhisintentiontoresign;

(b) onthedateheisconvicted

(i) inNigeria,inrespectofanoffence;or

(ii) outsideNigeria,inrespectofanoffenceinvolvingfinancialimproprietyoranyconductwhich,ifcommittedinNigeria,wouldconstituteanoffence;or

(c) ifhebecomesdisqualifiedundersections36(1)(a),(b),(c)or(d),toholdofficeasaCommissioner;or

(d) ifheisrequiredundersection38tovacatehisoffice;or

(e) whenheattainstheageof70years,whicheverisearlier.

38. DismissalorsuspensionofCommissioners

(1)ThePresidentshallrequireaCommissionertovacatehisofficeiftheCommissioner

(a) has,subjecttosection36(2),beenfoundtohaveconductedhimselfinamannerthatrendershimunsuitableasaCommissioner,includingacontraventionofsection43orsection57(2);or

(b) hasfailedtocomplywithanytermorconditionofhisofficefixedbythePresidentundersection35(3);or

(c) ismentallyorphysicallyincapableofefficientlycarryouthisfunctionsasaCommissioner;or

(d) theCommissionerisconvictedofanoffenceinrespectofwhichasentenceofimprisonmentwithouttheoptionofafinehasbeenimposed,whetherinNigeriaoroutside.

(2)ACommissionershallnotberemovedunlesstherequestissupportedbyasimplemajorityvoteoftheSenate.

39. FillingofvacanciesintheCommission

Subjecttosection40(6),onthedeathof,orvacationofofficeby,aCommissioner,thePresidentshallnominateacandidatetofillthatvacancy,andsubmitthatnominationtotheSenate,withinonemonth,inaccordancewithsection34.

40. ChairmanandViceChairmanoftheCommission

(1)ThePresidentshalldesignateoneoftheCommissionersasChairmanwhoshallbetheChiefExecutiveandAccountingOfficeroftheCommissionandanotherCommissionerasViceChairman.

(2)ACommissionerwhosetermofofficehasexpirediseligibleforreappointmentforanothertermandnomore.

(3)TheViceChairmanshallretainhispositionasViceChairmanuntilhistermofofficeasaCommissionerisexpired.

(4)TheViceChairmanshallperformtheChairman'sfunctionswhenevertheChairmanisforanyreasonunabletoperformthem.

(5)TheChairmanorViceChairmanmayatanytimeresignhisofficeassuchbyonemonth'snoticeinwritingtothePresident.

(6)WhenevertheofficeofChairmanorViceChairmanfallsvacant,oronthedeathoftheChairmanorViceChairman,thePresidentshall,withinthreeweeks,selectanotherCommissionertofillthevacancyundersection39.

41. MeetingsandprocedureoftheCommission

(1)TheCommissionshallmeetforthedispatchofbusinessasoftenasisnecessaryorexpedientand,subjecttothissection,mayadjourn,closeandotherwiseregulateitsmeetingsandprocedureasitthinksfit.

(2)TheChairmanor,inhisabsence,theViceChairmanshallpresideatallmeetingsoftheCommission.

(3)AlldecisionsoftheCommissionshallbeonthebasisofmajorityofthememberspresentandvoting.

(4)ThequorumforthemeetingoftheCommissionshallbefourandsubjecttosection43,atallmeetingsoftheCommissioneachCommissionerpresentshallhaveonevoteoneachquestionbeforetheCommissionand,intheeventofanequalityofvotes,theChairmanshallhaveacastingvote.

(5)ForameetingoftheCommissiontoreviewanypreviousdecisionorordertakenbytheCommission,thequorumshallbenolessthantheCommissionerspresentwhenthedecisionwastakenororderwasmade.

(6)Withoutderogationfromsubsection(1)ofthissection,theCommissionmayconductitsbusinessbymeansofwrittenresolutionssignedbyalltheCommissioners;providedthat,ifanyCommissionerrequiresthatamatterbeplacedbeforealltheCommissionersfordiscussion,thissubsectionshallnotapplytosuchmatter.

42. RemunerationandexpensesofCommissioners

(1)CommissionersshallbepaidfromthefundsoftheCommission

(a) suchremuneration,ifany,astheCommissionmayfromtimetotimedetermine,havingregardtotherecommendationsoftheNationalSalaries,IncomesandWagesCommission;and

(b) suchallowances,ifany,astheCommission,mayfromtimetotimedetermine,havingregardtotherecommendationsoftheNationalSalaries,IncomesandWagesCommission,tomeetanyreasonableexpensesincurredbysuchCommissionersinconnectionwiththebusinessoftheCommission.

(2)Whilemakingrecommendations,theNationalSalaries,IncomesandWagesCommissionshallhavedueregardtothefollowingprinciples

(a) thespecialisednatureofworktobeperformedbytheCommission;

(b) theneedtoensurethefinancialselfsufficiencyoftheCommissioners;

(c) thesalariespaidintheprivatesectortoindividualswithequivalentresponsibilities,expertiseandskills;and

(d) thenatureoftheexpensesincurredbytheCommissioners,includingnationalandinternationaltravelexpenses.

43. Commissionerstodisclosecertainconnectionsandinterests

(1)IfaCommissioner

(a) acquiresorholdsadirectorindirectpecuniaryinterestinanymatterthatisunderconsiderationbytheCommission;

(b) ownsanypropertyorhasarightinpropertyoradirectorindirectpecuniaryinterestinacompanyorassociationofpersonswhichresultsintheCommissioner'sprivateinterestscomingorappearingtocomeintoconflictwithhisfunctionsasaCommissioner;

(c) knowsorhasreasontobelievethatarelativeoftheCommissioner

(i) hasacquiredorholdsadirectorindirectpecuniaryinterestinanymatterthatisunderconsiderationbytheCommission;or

(ii) ownsanypropertyorhasarightinpropertyoradirectorindirectpecuniaryinterestinacompanyorassociationofpersonswhichresultsintheCommissioner'sprivateinterestscomingorappearingtocomeintoconflictwithhisfunctionsasaCommissioner;or

(d) ifforanyreasontheprivateinterestsofaCommissionercomeintoconflictwithhisfunctionsasaCommissioner,theCommissionershallforthwithdisclosethefacttotheCommission.

(2)ACommissionerreferredtoinsubsection(1)ofthissectionshalltakenopartintheconsiderationordiscussionof,orvoteon,anyquestionbeforetheCommissionwhichrelatestoanycontract,right,immovablepropertyorinterestreferredtointhatsubsection.

(3)ACommissionershall,priortoacceptinghisappointmenttotheCommission,makeadeclarationofassetsinaccordancewithparagraph11oftheFifthScheduletotheConstitutionoftheFederalRepublicofNigeria,1999andshallterminateallotherengagementsforgain,includingappointmenttoanyofficeinthePublicService.

(4)ACommissionerwhocontravenessubsection(1),(2)or(3)ofthissectioncommitsanoffenceandisliableonconvictiontoafinenotexceedingfiftythousandnairaorimprisonmentforaperiodnotexceedingthreemonthsortobothsuchfineandimprisonment.

44. NoinvalidityofdecisionsandactsoftheCommission

(1)NodecisionoractoftheCommissionoractdoneunderthedirectionoftheCommissionshallbeinvalidonthegroundthatthereexisted

(a) avacancyorvacanciesamongtheCommissioners;or

(b) somedefectintheconstitutionoftheCommissionatthetimethedecisionwastakenoractwasdoneorauthorised.

(2)IfaCommissionerreferredtoinsection43takespartintheconsiderationofamatterinwhichhisprivateinterestsareinconflictwithhisfunctionsasCommissioner,theotherCommissionersmaysubsequentlyratifyanysuchdecisionoraction.

45. ProceedingsoftheCommission

(1)TheCommissionshallbeentitledtoconductitsproceedings,consultationsandhearingsatitsheadquartersoratanyotherplaceinNigeria.

(2)TheCommissionshallmakeregulationsforthedischargeofitsfunctionsandfortheconductofitsproceedings,consultationsandhearings,includingproceduresfortheparticipationoflicensees,consumers,eligiblecustomersandotherpersons.

46. DecisionsandordersoftheCommission

(1)TheChairmanshallensurethatallCommissiondecisionsandorders

(a) containthebasisforthedecisionororder;

(b) areproperlyrecordedinwriting;and

(c) areaccessibletothepublicatreasonabletimesandplaces.

(2)TheCommissionshallissuewrittenreasonsinrespectofanydecisionsorordersaffectingtheexistingrightsofanyperson,iftheaffectedpersonrequestssuchwrittenreasons.

(3)TheCommissionmayissuewrittenreasonsinrespectofanyotherdecisionororderastheCommissiondeemsnecessary.

(4)Everyrecommendation,declaration,decisionororderoftheCommission,ifpurportingtobesignedbyapersondescribinghimselfastheChairmanoftheCommission,orbyapersondescribinghimselfastheViceChairmanactinginthecapacityoftheChairman,shall,unlessthecontraryisshown,bedeemedtobemadebytheCommissionandtohavebeensosignedandmaybeprovedbytheproductionofacopythereofpurportingtohavebeensosigned.

(5)TheCommissionmaymakeinterimorderspendingthefinaldispositionofamatterbeforeit.

47. Commissiontogivenoticetointerestedparties

(1)TheCommissionmayholdahearingofanymatter,whichunderthisActoranyotherenactmentisrequiredorpermittedtoconductoronwhichitisrequiredorpermittedtotakeanyactionandtheCommissionshallholdpublichearingonmatterswhichtheCommissiondeterminetobeofsignificantinteresttothegeneralpublic.

(2)WheretheCommissionisrequiredto,orotherwisedecidesto,holdahearing,allpersonshavinganinterestinsuchmattershall,asfarasreasonablypracticable,benotifiedofthequestionsatissueandgivenopportunitiesofmakingrepresentationsiftheysowish.

48. Commissiontoconsultexpertsontechnicalquestions

Whenanymatterariseswhichentailstheconsiderationofanyprofessionalortechnicalquestion,theCommissionmayconsultsuchpersonsasmaybequalifiedtoadvisethereon.

49. QuestionsoflawmaybereferredtotheHighCourt

(1)IfanyquestionoflawarisesfromanorderordecisionoftheCommission,theCommissionmay,onitsowninitiativeorattherequestofanypersondirectlyaffectedbysuchorder,reservethatquestionforthedecisionoftheHighCourt.

(2)Whereaquestionhasbeenreservedundersubsection(1)ofthissection,theCommissionshallstatethequestionintheformofaspecialcaseandfileitwiththeRegistraroftheHighCourt.

50. RehearingandAppeals

(1)Subjecttothissection,anypersonwhoisaggrievedby

(a) adecisionoftheCommissionnottoissuealicence;

(b) anytermorconditionofalicenceissuedtohim,orarefusalbytheCommissiontospecifyatermorconditioninalicence;

(c) arefusalbytheCommissiontorenewalicence;

(d) anyamendmentofalicenceorarefusalbytheCommissiontoamendalicence;

(e) thecancellationofalicence;

(f) thegrantorrefusalbytheCommissiontograntanyapprovalorauthorityinterms

(g) theoutcomeofanyarbitrationormediationbytheCommissionofadisputebetweenlicensees;

(h) adecisionoftheCommissionwithrespectofpricesortariffs;

(i) anyotherdecisionoftheCommission,

mayapplytotheCommissionforreviewofthedecision,orderorrefusal.

(2)TheCommissionmay,reconsider,varyorrescinditsdecisionsbeforeissuingafinaldecision,inaccordancewithsuchproceduresastheCommissionmayestablish;providedthatsuchrevieworreconsiderationshallbecompletedwithinsixtydaysofthedateitisrequested.

51. AnnualprogrammesandbudgetsofCommission

(1)OnorbeforesuchdateastheMinistermayspecifybeforethebeginningofeveryfinancialyear,theCommissionshallprepareandsubmittotheMinisterabudgetshowingtheexpenditureswhichtheCommissionproposestoincurinrespectofthatfinancialyearinordertocarryoutthefunctionsoftheCommission.

(2)DuringanyfinancialyeartheCommissionmayprepareandsubmittotheMinisterasupplementarybudgetrelatingtoexpenditureswhichwereinadequatelyprovidedforintheannualbudgetduetounforeseencircumstances.

(3)AsupplementarybudgetshallbedeemedtoformpartoftheannualbudgetoftheCommissionforthefinancialyeartowhichitrelates.

(4)TheCommissionmayvaryabudgetpreparedunderthissection;providedthatnovariationmaybemadewhichhastheeffectofincreasingthetotalamountofexpenditureprovidedforinthebudget.

52. FundsoftheCommission

ThefundsoftheCommissionshallconsistof

(1) fees,chargesandotherincomeaccruingtotheCommissionfromlicenseesandotherthingsdonebyitintermsofthisAct,excludinganyfinesorpenaltiesrerecoveredpursuanttothisAct;

(2) fundsallocatedtotheCommissionbytheNationalAssembly,pursuanttoarequestbytheCommissionforadditionalfundsrequiredtomeetitsreasonableexpenditures;and

(3) suchothermoneysasmayvestinoraccruetotheCommission,whetherinthecourseofitsoperationsorotherwise.

53. SurplusfundsoftheCommission

If,followinganauditoftheCommission'saccountsundersection56,theauditorsdeterminethataportionofthefundsreceivedpursuanttosection52aresurplustothebudgetedrequirementsoftheCommission,suchsurplusfundsshallbepaidbytheCommissiontotheRuralElectrificationFundestablishedunderPartIXofthisAct,subjecttoapprovalbytheNationalAssembly.

54. FinancialyearoftheCommission

ThefinancialyearoftheCommissionshallbetheperiodoftwelvemonthsendingon31DecemberineachyearorsuchotherperiodastheMinistermaydetermine.

55. AccountsoftheCommission

(1)TheCommissionshallensurethatproperaccountsandotherrecordsrelatingtosuchaccountsarekeptinrespectofalltheCommission'sactivities,fundsandproperty,includingsuchparticularaccountsandrecordsastheMinistermayrequire.

(2)TheCommissionshall,notlaterthanthreemonths,aftertheendofthefinancialyear,prepareandsubmittotheAuditorGeneraloftheFederationandNationalAssemblyastatementofaccountsinrespectofthatfinancialyear.

(3)TheCommissionshallpresentquarterlyreportsonallitsactivitiestothePresidentandNationalAssembly.

56. AuditoftheCommission'saccounts

(1)TheCommissionshallappointanauditorinaccordancewiththeguidelinesfortheappointmentofauditorsissuedbytheAuditorGeneraloftheFederation.

(2)TheaccountskeptbytheCommissionundersection55(1)shallbeexaminedbytheauditors.

(3)Theauditorshallwithinsixmonthsaftertheendofeachfinancialyear,makeareporttotheCommissionandtheMinisteronthestatementofaccountspreparedundersection55(2)andsuchreportshallstatewhetherornot,intheopinionoftheauditor,thestatementofaccountsgivesatrueandfairviewoftheCommission'saffairs.

(4)TheMinistermayrequiretheCommissiontoobtainfromitsauditorsuchotherreports,statementsorexplanationsinconnectionwiththeCommission'soperations,fundsandpropertyastheMinistermayconsidernecessary,andtheCommissionshallforthwithcomplywithanysuchrequirement.

(5)Notwithstandingtheprovisionofsubsection(4)ofthissection,theMinistershallauthorisetheCommissiontopublishitsauditedstatementofaccountsintwonationalnewspaperswithinonemonthfollowingthereceiptoftheauditor'sreportundersubsection(3)ofthissection,andtheCommissionshallthereafterpublishthestatementofaccountsinthemannerthathasbeenauthorised.

57. Powersofauditors

(1)TheauditorshallbeentitledatallreasonabletimestorequiretobeproducedtohimallaccountsandotherrecordsrelatingtosuchaccountswhicharekeptbytheCommissionoritsagentsandtorequirefromanyCommissioneroremployeeoragentoftheCommissionsuchinformationandexplanationsasintheauditor'sopinionarenecessaryforthepurposesoftheiraudit.

(2)AnyCommissioneroremployeeoragentoftheCommissionwhofailswithoutjustcausetocomplywitharequirementofanauditorintermsofsubsection(1)ofthissectioncommitsanoffenceandisliableonconvictiontoafinenotexceedingtwentythousandnairaortoimprisonmentforaperiodnotexceedingthreemonthsortobothsuchfineandimprisonment.

58. ExecutionofcontractsandinstrumentsbyCommission

Anyagreement,contractorinstrumentapprovedbytheCommissionmaybeenteredintoorexecutedonbehalfoftheCommissionbyanypersonsgenerallyorspeciallyauthorisedbytheCommissionforthatpurpose.

59. ReportsofCommission

(1)InadditiontoanyreportwhichtheCommissionisrequiredbythisActtosubmittotheMinister,theCommission

(a) shallsubmittotheMinistersuchotherreportsastheMinistermayrequire;and

(b) maysubmittotheMinistersuchotherreportsastheCommissionconsiders

(2)TheMinistershallpubliclyreleaseanyreportssubmittedpursuanttosubsection(1)ofthissection,withintwomonthsfollowingthereceiptofsuchareport.

60. StaffofCommission

(1)TheCommissionshallemploysuchpersonsasitconsidersexpedientforthebetterexerciseofthefunctionsoftheCommission.

(2)Thetermsandconditionsofservice,includingremuneration,allowancesandpensionbenefitsofthestaffoftheCommission,shallbeasdeterminedbytheCommission.

(3)Subjecttosubsection(5)ofthissection,theCommissionmayassigntoitsstaffsuchfunctionsoftheCommissionastheCommissiondeemsfit.

(4)Anyassignmentoffunctionsundersubsection(3)ofthissectionmaybemadeeithergenerallyorspeciallyandsubjecttosuchreservations,restrictionsandexceptionsastheCommissionmaydetermine,andmayberevokedbytheCommissionatanytime.

(5)AnythingauthorisedorrequiredbyorunderthisActtobedonebytheCommission,otherthanthemakingoffinalorders,maybedonebyanymemberoftheCommissionstaffwhohasbeenauthorisedeithergenerallyorspecificallybytheCommissiontodoso.

61. ExemptionfromliabilityforCommission

NoliabilityshallattachtotheCommissionortoanyemployeeoftheCommissionortoaCommissionerforanylossordamagesustainedbyanypersonasaresultofthebonafideexerciseorperformanceofanyfunctionwhich,byorintermsofthisAct,isconferredorimposedupontheCommissionortheCommissioners.

PARTIV

LicencesandTariffs

62. Licensingrequirement:finesandpenalties

(1)Noperson,exceptinaccordancewithalicenceissuedpursuanttothisActordeemedtohavebeenissuedundersection98(2),shallconstruct,ownoroperateanundertakingotherthananundertakingspecifiedinsubsection(2)ofthissection,orinanywayengageinthebusinessof

(a) electricitygeneration,excludingcaptivegeneration;

(b) electricitytransmission;

(c) systemoperation;

(d) electricitydistribution;or

(e) tradinginelectricity.

(2)Notwithstandingsubsection(1)ofthissection,apersonmayconstruct,ownoroperateanundertakingforgeneratingelectricitynotexceeding1megawatt(MW)inaggregateatasiteoranundertakingfordistributionforelectricitywithacapacitynotexceeding100kilowatts(kW)inaggregateatasite,orsuchothercapacityastheCommissionmaydeterminefromtimetotime,withoutalicence.

(3)TheCommissionmayissueaninterimlicenceforanyoralloftheactivitiesspecifiedinsubsection(1)ofthissectiontoanypersonasspecifiedundertheActforaperiodnotexceedingeighteenmonths,orsuchshorterperiodasmaybespecifiedinthisAct,ifitdeterminesthatitisnecessaryinthepublicinteresttodoso.

(4)TheCommissionshallhavethepowertoresolvedisputesastowhetherapersonisengaging,orisabouttoengageinabusinessforwhichalicenceisrequiredundersubsection(1)ofthissection.

(5)Anypersonwhocontravenessubsection(1)ofthissectioncommitsanoffenceandisliableonconvictiontoafinenotexceedingfivehundredthousandnairaortoimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandimprisonment.

(6)TheCommissionshallhavetheauthoritytoorderanypersonwhocontravenessubsection(1)ofthissectiontoceasehisoperations,andtomakesuchotherorders,includinganordertoanotherlicenseetodisconnectfacilities,asmaybenecessarytopreventthecontinuationorreoccurrenceofthecontravention.

(7)TheCommissionshallhavetheauthoritytopenalisealicenseeforviolationsofhislicencetermsandconditionsortocancelsuchlicenceinaccordancewiththeprovisionsofthisAct.

63. Generaldutiesoflicensees

(1)Alicenseeshallcomplywiththeprovrsionsofhislicence,regulations,codes,andotherrequirementsissuedbytheCommissionfromtimetotime.

(2)Unlessstayedbyacourtofcompetentjurisdiction,eachlicenseeshalldulyimplementorfollow,asthecasemaybe,Commissionordersandwrittennotices,notwithstandingthatthelicenseehasormayintendtotakelegalactionchallenginganysuchorderornotice.

64. Generallicences

(1)SubjecttosuchtermsandconditionsastheCommissionmayfixinthelicence,agenerationlicenceshall,asthecircumstancesmayrequire,authorisethelicenseetoconstruct,own,operateandmaintainagenerationstationforpurposesofgenerationandsupplyofelectricityinaccordancewiththisAct.

(2)SubjecttothisAct,theholderofagenerationlicencemaysellpowerorancillaryservicestoanyoftheclassesofpersonsspecifiedinthelicence.

(3)TheCommissionmayissuegenerationlicencesto

(a) oneormoreofthesuccessorcompaniesformedundersection8,hereindescribedasa"successorgenerationcompany";or

(b) oneormoreentitiesthatarenotsuccessorcompaniesformedundersection8,hereindescribedasan"independentpowerproducer".

65. Transmissionlicences

(1)SubjecttosuchtermsandconditionsastheCommissionmayfixinthelicence,atransmissionlicenceshallauthorisethelicenseetocarryongridconstruction,operation,andmaintenanceoftransmissionsystemwithinNigeria,orthatconnectNigeriawithaneighbouringjurisdiction.

(2)Thetransmissionlicenseethatisasuccessorcompanyformedundersection8mayalsohaveanobligationtocarryoutsystemoperation,includingtheprocurementofancillaryservices,pursuanttothetermsofasystemoperationlicenceissuedbytheCommissiontosuchlicensee.

66. Systemoperationlicence

(1)SubjecttosuchtermsandconditionsastheCommissionmayfixinthelicence,asystemoperationlicenceshallauthorisethelicenseetocarryonsystemoperation,including,butnotlimitedto,thefollowingactivitiesasmaybespecifiedinthelicence

(a) generationscheduling,commitmentanddispatch;

(b) transmissionschedulingandgenerationoutagecoordination;

(c) transmissioncongestionmanagement;

(d) internationaltransmissioncoordination;

(e) procurementandschedulingofancillaryservicesandsystemplanningforlongtermcapacity;

(f) administrationofthewholesaleelectricitymarket,includingtheactivityofadministrationofsettlementpayments,inaccordancewiththemarketrules;and

(g) operation.suchotheractivitiesasmayberequiredforreliableandefficientsystem

(2)Allcontractsforprocuringancillaryservicesshallbeawardedaccordingtoanopentransparentandcompetitivemanner,pursuanttoaprocedureestablishedbytheCommission,unlessthecircumstancesrequireotherwiseandtheCommissionallowsorrequiresanalternativemethod.

67. Distributionlicences

(1)SubjecttosuchtermsandconditionsastheCommissionmayfixinthelicence,adistributionlicenceshallauthorisethelicenseetoconstruct,operateandmaintainadistributionsystemandfacilities,including,butnotlimitedto,thefollowingactivitiesasmaybespecifiedinthelicence

(a) theconnectionofcustomersforthepurposeofreceivingasupplyofelectricity;

(b) theinstallation,maintenanceandreadingofmeters,billingandcollection;and

(c) suchotherdistributionserviceasmaybeprescribedforthepurposesofthissection.

(2)Adistributionlicenseemayalsohavetheobligationtoprovideelectricitytoitsdistributioncustomers,pursuanttothetermsofatradinglicenceissuedbytheCommissiontothedistributionlicensee.

(3)Adistributionlicenseethathasatradinglicenceissuedundersubsection(2)ofthissectionmaypurchasepowerforresalefromanothertradinglicenseeandmay,withthepriorapprovaloftheCommission,purchasepowerfromothersourcesexceptfortherightsandobligationsofthetradinglicencedescribedinsection25(a)novatedtoadistributionlicenseeundersection26,allcontractsforbulkpurchaseofpowerbyadistributionlicenseeshallbeawardedaccordingtoanopen,transparent,andcompetitivemanner,pursuanttoaprocedureestablishedbytheCommission,unlessthecircumstancesrequireotherwiseandtheCommissionallowsorrequiresanalternativemethod.

68. Tradinglicences

(1)Atradinglicenseeshallbepermittedtoengageinthepurchasing,selling,andtradingofelectricityandtheCommissionshallhavetheauthoritytodeterminethetermsandconditionsoftradinglicencesasmaybeappropriateinthecircumstances,andhavingdueregardtothenatureoftheactivitiesinwhichthelicenseeintendstoengage.

` (2)TheCommissionmayalsoissueatemporarybulkpurchaseandresalelicence,givingthelicensee,theabilitytopurchaseelectricalpowerandancillaryservicesfromindependentpowerproducersandsuccessorsgenerationcompaniesforthepurposeofresalestooneormoreotherlicensees,ortoaneligiblecustomer.

(3)Allcontractsforpurchasesofelectricalpowerandancillaryservicesbytheholderofsuchtemporarylicenceshallbeawardedaccordingtoanopen,transparent,andcompetitivemanner,pursuanttoaprocedureestablishedbytheCommission,unlessthecircumstancesrequireotherwiseandtheCommissionallowsorrequiresanalternativemethod.

69. Restrictionsonlicences

(1)Alicenseeshallnot,exceptasprovidedinsection26(7)assignorcedehislicenceortransferhisundertaking,oranypartthereof,bywayofsale,mortgage,lease,exchangeorotherwisewithoutthepriorconsentoftheCommission;providedthat,shouldtheCommissiondeterminethatinanyinstancethecircumstancessorequire,itmayestablishlicencetermsandconditionsprovidingitsspecificorgeneralconsentforanyoralloftheforegoing.

(2)Nolicenseeshall,withoutthepriorwrittenconsentoftheCommission,acquirebypurchaseorotherwise,oraffiliatewith,thelicenceorundertakingofanyotherlicenseeorpersonthatisinthebusinessofelectricitygeneration,transmission,systemoperation,distribution,ortrading,otherthanasprovidedforinsections65(2),67(2)and68;providedthattheCommissionmay,aspartofitsconsent,imposeconditionssuchas,butnotlimitedto,adherencetocodesofconductapprovedbytheCommission.

70. Anapplicationforalicence

(1)AnapplicationforalicenceshallbemadetotheCommissionintheformandmannerprescribedandbeaccompaniedbytheprescribedfeeandsuchinformationordocumentsasmaybeprescribedorastheCommissionmayrequire.

(2)Withinthirtydaysafterapplyingforalicenceundersubsection(1)ofthissection,theapplicantshall,athisownexpense,causeanoticeoftheapplicationtobepublishedinanewspapercirculatingintheareainwhichheintendstooperateasalicensee,andinaseparate,nationalcirculationnewspaper,inaccordancewithsuchdirectionsasmaybegivenbytheCommission,statingtheperiod,prescribedbytheCommission,withinwhichobjectionsorrepresentationinconnectionwiththeapplicationmaybemadetotheCommission,andtheCommissionshallnotissueanylicenceuntilallobjectionsorrepresentationsreceivedbytheCommissionhavebeenconsideredanddetermined.

(3)Anapplicantforalicencewhoowns,oralicenseewhoacquires,morethantenpercentorsuchotherpercentageastheCommissionmayspecify,ofthesharesinabodycorporatewhichhasappliedfororholdsanotherlicenceissuedbytheCommissionshalldisclosesuchinteresttotheCommission.

(4)Subjecttosubsection(5)ofthissection,ifonconsiderationofanapplicationthatsatisfiestherequirementsofsubsection(1)ofthissection,theCommissionisalsosatisfiedthat

(a) theapplicantislikelytocomplywithsuchprovisionsofthisAct,including,without,allcodesofconduct,standards,regulationsandlicensetermsandconditions,asapplytotheserviceorsystemitintendstoprovideoroperate;and

(b) thegrantofthelicenceisinthepublicinterest,

theCommissionshallissuetheappropriatelicence,asthecasemaybe,totheapplicant.

(5)Ifonconsiderationofanapplicationthatsatisfiestherequirementsofsubsection(1)ofthissection,theCommissionisnotsatisfiedastotheadditionalmattersreferredtoinsubsection(4),itshallrefusetoissuealicencetotheapplicant,butbeforerefusingtoissuethelicenceonthegroundthatitisnotsatisfiedastothemattersreferredtoinsubsection(4)ofthissection,theCommissionshallnotifytheapplicantinwritingthatitproposestorefusetheapplicationandofitsreasonsfordoingso,andshallaffordtheapplicantanadequateopportunitytomakerepresentationsinthematter.

(6)TheperiodbetweentheCommission'sreceiptofanapplicationundersubsection(1)ofthissectionandalldocumentsandinformationsubmittedinsupportofit,andthedateonwhichitnotifiestheapplicantoftheadequacyofthedocumentsandinformation,shallnotexceedonemonth.

(7)TheperiodbetweentheCommission'sreceiptofanapplicationthatsatisfiestherequirementsofsubsection(1)ofthissection,andthedateonwhichtheCommissionnotifiestheapplicantofitsdecisionorproposeddecisioninaccordancewithsubsection(4)orsubsection(5),asthecasemaybe,shallnotexceedsixmonths.

(8)Notwithstandingsubsections(1)to(7)ofthissection,theCommissionmayestablishsimplifiedproceduresforundertakingsandbusinessesthatarelimitedinsizeandscopesoastoexpeditetheapplicationandlicensingprocess.

71. Termsandconditionsoflicences

(1)Alicenceshallbeissuedsubjecttosuchtermsandconditionsasmaybeprescribed,orastheCommissionmayreasonablydetermine,includingtermsandconditionsprescribingtheuseofatariffmethodologyapprovedbytheCommissionundersection76.

(2)Withoutderogationfromsubsection(1)ofthissection,thetermsandconditionsofalicencemayrequirethelicenseeto

(a) enterintoagreementsonspecifiedtermswithotherpersonsfortheprovisionoforuseofelectriclinesandassociatedequipmentoperatedbythelicensee;

(b) purchasepowerandotherresourcesinaneconomicalantransparentmanner;

(c) referdisputesforarbitration,mediation,ordeterminationbytheCommission.

(3)Inthecaseofalicenceissuedtoanapplicantreferredtoinsection70(3),thelicencemaybeissuedsubjecttotheconditionthatthelicenseeshalldivestitselfwithinaspecifiedtimeofanyholding

ofsharesinanotherlicenseeorsuchotherconditions,includingadherencetocodesofconduct,thattheCommissiondeterminestobeinthepublicinterest.

(4)Inissuingorrenewingadistributionlicence,theCommissionmayimposeaconditionrequiringthelicenseetomakesuchreasonableprovisionasmaybespecifiedbytheCommissioninthelicenceforthefacilitationofruralelectrificationintheproximityoftheservice,havingdueregardtothetariffmethodologyestablishedbytheCommissionundersection76.

(5)AlicencemayrequirethelicenseetoprovideinformationtotheCommissiononaperiodicbasis,insuchformanddetailastheCommissionmaydetermine.

(6)Unlessexpresslyindicatedinthelicence,thegrantofalicenceshallnothinderorrestrictthegrantofalicencetoanotherpersonforalikepurposeand,intheabsenceofsuchanexpressindication,thelicenseeshallnotclaimanyexclusivity;providedthattheCommissionmayallowalicensedactivitytobeexclusiveforallorpartoftheperiodofthelicence,foraspecificpurpose,forageographicalarea,orforsomecombinationoftheforegoing.

(7)AlicencemaycontaintermsandconditionsforthelicencetoceasetohaveeffectortobemodifiedoramendedbytheCommissioninsuchcircumstancesasmaybespecifiedinthelicenceorasmaybedeterminedbytheCommission.

(8)Asaconditionofitslicence,everylicenseeshall,unlessexpresslyexemptedbyitslicence,prepareandsubmittotheCommissioneachyearsuchaccountinginformationastheCommissionmayrequire.

(9)TheCommissionshallincludeineachlicencesuchdetailsasitdeterminesorarerequireedregardingtherightsandobligationsofthelicensee,andprocedurestobefollowed,attheendofitslicenceterm.

(10)Alicenceshallbevalidforaperiodofupto,butnotexceedingtenyears;providedthattheCommissionmayextendtheperiodofalicencetakingintoaccountthenatureoftheundertakingorbusiness,foranadditionalperiodnotexceedingfiveyearsatatimeitdeterminesthatitisinthepublicinteresttodoso.

(11)Everylicenceshallbedeemedtocontainaprovisionthatthelicenseecomplywiththemarketrulestotheextentapplicabletothelicensee.

72. Renewaloflicences

(1)SubjecttotheprovisionsofthisAct,theholderofalicencemayapplyforarenewalofthelicencebeforeitexpires.

(2)AnapplicationfortherenewalofalicenceshallbemadetotheCommissionintheformandmannerandwithintheperiodprescribedbytheCommission,anditshallbeaccompaniedbytheprescribedfee,ifany.

(3)Section71applies,mutatismutandis,totherenewaloflicences.

73. Amendmentoflicences

(1)Subjecttothissection,theCommissionmay,atanytime,amendalicenceoranytermorconditionofalicence

(a) ifthelicenseerequeststheamendment;or

(b) iftheamendmentispursuanttoaconditionofthelicenceimposedundersection71(7);or

(c) uponreceivingacomplaintfromanyconsumer,eligiblecustomer,consumerassociation,associationofeligiblecustomers,orotherlicensee;or

(d) onitsowninitiative.

(2)Wherealicenseemakesanapplicationfortheamendmentofalicence,thelicenseeshallpublishanoticeoftheproposedamendmentstothelicenceinaccordancewithsuchdirectionsasmaybegivenbytheCommission,statingtheperiod,prescribedbytheCommission,withinwhichobjectionsorrepresentationsinconnectionwiththeamendmentsmaybemadetotheCommission,andtheCommissionshallnotamendanylicenceuntilallobjectionsorrepresentationsreceivedbytheCommissionhavebeenconsideredanddetermined.

(3)InthecaseofanapplicationproposingamendmentstoalicenceofalicenseewhoprovidesservicestoanareacoveringabuildingorplaceoccupiedbytheFederalMinistryofDefencefordefencepurposes,theCommissionshallobtaintheconsentoftheFederalMinistryofDefencebeforemakingtheamendmenttothelicence.

(4)Beforemakingamendmentsinalicenceotherwisethanontheapplicationofthelicensee,theCommissionshallpublishtheproposedamendments,statingtheperiodwithinwhichobjectionsorrepresentationsmaybemadetotheCommission,andtheCommissionshallnotamendanysuchlicenceuntilallsuchobjectionsorrepresentationsreceivedbytheCommissionhavebeenconsideredanddetermined.

74. Cancellationoflicences

(1)Upon

(a) receivingacomplaintfromanyconsumer,eligiblecustomer,consumerassociation,associationofeligiblecustomersorotherlicensee;or

(b) onitsowninitiative,

theCommissionmayinquireintotheconductorfunctioningofanylicensee'sobligationsunderthisAct,rulesorregulations,codesofconduct,orthetermsandconditionsofthelicence.

(2)Subjecttothissection,andafteraninquiry,includinganopportunityforthelicenseetoshowcauseastowhythelicenceshouldnotbecancelled,theCommissionmaycancelanylicenceif,initsopinion

(a) thelicencewasissuedthroughfraudorthemisrepresentationornondisclosureofamaterialfactbythelicensee;or

(b) thelicenseehaswilfullyorunreasonablycontravenedanyprovisionofthisActthatisapplicabletothelicensee;or

(c) thelicenseehasfailedtocomplywithanytermorconditionofthelicence,thebreachofwhichisexpresslydeclaredbysuchlicencetorenderitliabletocancellation;or

(d) thefinancialpositionofthelicenseeissuchthatheisunabletofullyandefficientlydischargethedutiesandobligationsimposedbythelicence.

(3)Beforecancellingalicenceundersubsection(2)ofthissection,theCommissionshallnotifythelicenseeinwritingofitsintentiontocancelthelicenceconcernedandthereasonsfordoingso,andshallallowthelicenseeanopportunitytodemonstrate,within60daysfollowingthedeliveryofsuchanotification,thatcircumstanceshavechangedsuchthatcancellationmaynolongerbewarranted.

(4)If,attheexpiryoftheinquiryandanyfurtheropportunitytobeheard,undersubsections(2)and(3)ofthissection,theCommissionissatisfiedforanyreasonspecifiedinsubsection(2)ofthissectionthatitisinthepublicinterestthatthelicenceconcernedshouldbecancelled,theCommissionmay,bynoticeinwritingtothelicensee,cancelthelicenceortakesuchotheractionasitconsidersappropriate.

(5)Notwithstandingsubsections(2)to(4)ofthissection,insteadofcancellingalicence,theCommissionmayallowthelicencetoremaininforce,subjecttosuchfurthertermsandconditionsasitmaydeemnecessarytoimpose,andsuchtermsandconditionsshallformpartofthelicence.

(6)IntheeventthattheCommissiondecidestocancelalicence,itshallserveonthelicenseeanoticeofcancellationfixingthedateonwhichthecancellationshalltakeeffectandtheCommissionmaymakeordersinregardtotheundertakingofthelicensee,includinganorderforthesaleoftheundertakingofthelicensee,asare,intheopinionoftheCommission,necessaryformaintainingcontinuityintheprovisionofelectricityservice.

75. Enforcementoflicences

(1)Withoutderogationfromitspowersundersection74,wheretheCommissionissatisfiedthatalicenseeiscontravening,hascontravenedorislikelytocontraveneanyoftheconditionsofthelicence,theCommissionmayserveuponthelicenseeanorder

(a) requiringthelicenseetodo,ornottodo,suchthingsasarespecifiedintheorderforthepurposeofrectifyingoravoidinganycontraventionorthreatenedcontraventionofanyconditionofthelicence;and

(b) stipulatingtheperiodwithinwhichanyrequirementreferredtoinsubsection(1)(a)ofthissectionshallbecommencedandcompleted;andnoticeoftheordershallbepublishedbytheCommissioninsuchmannerasitconsidersappropriatetodrawtheattentionofotherpersonsaffectedorlikelytobeaffectedbythecontraventionorthreatenedcontraventionofthelicence.

(2)Beforeservinganorderintermsofsubsection(1)ofthissection,theCommissionshallserveanoticeuponthelicenseeconcerned

(a) specifyingthegroundsuponwhichtheorderistobeissuedandwhattheCommissionconsidersreasonablynecessaryforthepurposeofrectifyingoravoidinganycontraventionorthreatenedcontraventionofanyconditionofthelicence;

(b) stipulatingthemaximumperiodthattheCommissionconsidersreasonablefortheimplementationofanyrequirementitproposestoorder;and

(c) allowingthelicensee,tomakerepresentationstotheCommissionwithinsuchperiodfromthedateofserviceofthenoticeasitshallspecify.

(3)Afterconsideringanyrepresentationsmadeundersubsection(2)(c)ofthissection,theCommissionmayserve,orrefrainfromordeferserving,anorderintermsofsubsection(1),orserveanorderondifferentterms.

(4)Anorderservedundersubsection(1)ofthissectionmayspecifyapenaltyforeachdaythatthelicenseesubjectedtotheorderisindefaultofcompliancewiththeorder,nottoexceedtenthousandnairaforeachsuchday.

76. Tariffs

(1)Thefollowingactivitiesaresubjecttotariffregulation

(a) generationandtrading,inrespectofwhichlicencesarerequiredpursuanttothisAct,andwheretheCommissionconsidersregulationofpricesnecessarytopreventabusesofmarketpower;and

(b) transmission,distributionandsystemoperation,inrespectofwhichlicencesarerequiredunderthisAct.

(2)Pricesfortheactivitiesreferredtoinsubsection(1)ofthissectionshallberegulatedaccordingtooneormoremethodologiesadoptedbytheCommissionforregulatingelectricitypricesandsuchtariffmethodologiesshall

(a) allowalicenseethatoperatesefficientlytorecoverthefullcostsofitsbusinessesactivities,includingareasonablereturnonthecapitalinvestedinthebusiness;

(b) provideincentivesforthecontinuedimprovementofthetechnicalandeconomicefficiencywithwhichtheservicesareprovided;

(c) provideincentivesforthecontinuedimprovementofqualityofservices;

(d) givetoconsumerseconomicallyefficientsignalsregardingthecoststhattheirconsumptionimposesonthelicensee'sbusiness;

(e) avoidunduediscriminationbetweenconsumersandconsumercategories;and

(f) phaseoutorsubstantiallyreducecrosssubsidies.

(3)TheCommissionshalltakeintoaccountanysubsidyprovidedbythePowerConsumerAssistanceFundunderthisActorfromanyothersource,whetherdirectofbywayoffavourablefinancingterms,orinanyothermanner,inestablishingitstariffmethodologies.

(4)Notwithstandingsubsection(2)ofthissection,theCommissionshallhavetheauthoritytoestablishtariffmethodologiesthatreflectthetermsandconditionsofacontractbetweenthelicenseesorbetweenalicenseeandoneormoreeligiblecustomers.

(5)Notwithstandingsubsection(2)(e)ofthissection,inestablishingtariffmethodologiestheCommissionmaydifferentiateamongcustomersonthebasisofdifferencesintotalelectricityconsumption,thetimeperiodsonwhichelectricityisconsumed,loadfactors,powerfactors,voltagelevels,locationwithinthecountryandothersuchcriteriaasmayaffectthecostofprovidingaserviceandmayallowalifelinetariffforsomeconsumers.

(6)Priortoapprovingatariffmethodology,theCommissionshallgivenoticeintheofficialGazette,andinoneormorenewspaperswithwidecirculation,oftheproposedestablishmentofatariffmethodology,indicatingtheperiodwithinwhichobjectionsorrepresentationsinconnectionwiththesamemaybemadetotheCommission.

(7)Inpreparingatariffmethodology,theCommissionshall

(a) consideranyrepresentationsmadebylicenceapplications,otherlicensees,consumers,eligiblecustomers,consumersassociations,associationsofeligiblecustomersandsuchotherpersonsasitconsidersnecessaryordesirable;

(b) obtainevidence,informationoradvicefromanypersonwho,intheCommission'sopinion,possessesexpertknowledgewhichisrelevantinthepreparationofthemethodology.

(8)TheCommissionshallfixthedateonwhichthetariffmethodologyshallcomeintooperationanditshallitshallcausenoticetobegivenintheofficialGazetteofthatdate.

(9)IfitappearstotheCommissionthatatariffmethodologyshouldbechanged,theCommissionshallgivenoticeintheofficialGazette,andinoneormorenewspaperswithwidecirculation,oftheproposaltochangethemethodology,indicatingtheperiodwithinwhichrepresentationsinconnectionwiththeproposalmaybemade.

(10)Aftertakingintoaccountanyobjectionsorrepresentationsreceivedinresponsetoanoticeissuedundersubsection(9)ofthissection,theCommissionmayconfirmtheproposedchangestothetariffmethodologyandtheprovisionsofsubsection(8)shallapplymutatismutandis.

(11)Everypersonuponwhomanyfunctionhasbeenconferredorimposedinconnectionwithsettingtariffs,shallbeboundbyatariffmethodologythathascomeintooperationundersubsection(8)orsubsection(10)ofthissection.

(12)Everylicenseeshallkeepathisofficeacurrentcopyofthetariffmethodologyapplicabletothatlicenseeandshallmakeacopyavailableforinspectiononrequestbyanypersonfreeofanychargeduringthelicensee'snormalworkinghours.

(13)AnyfinesorpenaltiesleviedagainstalicenseeintermsofthisActoranyotherlaworregulationshallnotberechargeabletothelicensee'scustomers.

(14)Anypersonorlicenseewhocontravenesorcondonesthecontraventionoftheprovisionofsubsection(13)ofthissectionshallbeliabletoafinetwotimesthechargetothelicensee'scustomersortoimprisonmentofnotmorethanoneyearortobothsuchfineandimprisonment.

PARTV

AcquisitionofLandandAccessRights

77. Specialprovisionsrelatingtogeneration,transmissionanddistributioncompanies

(1)Whereagenerationlicensee,transmissionlicenseeoradistributionlicensee,oraproposedlicenseeforgeneration,transmissionordistributionservice,requiresanylandinconnectionwithitsobligationsunderitslicenceoraproposedlicence,suchlicenseemayapplytotheCommission,insuch

formastheCommissionmayprescribe,foradeclarationthatthelandisrequiredforpurposesofgeneration,transmissionordistributionofelectricity.

(2)TheCommissionmaycallforsuchfurtherinformationastheCommissionmaydeemnecessaryinconnectionwithanapplicationsubmittedundersubsection(1)ofthissectionandinconsideringtheapplicationmadeundersubsection(1)ofthissection,theCommissionmayinviteandconsidersubmissionsfromtheCommissionerofLandsoftheStatewheretheconcernedlandissituated.

(3)AfterholdingsuchenquiryastheCommissionmayconsidernecessary,theCommissionmay,subjecttosuchexceptionsasitmayhaveincludedintherelevantlicenceandsubjecttosuchfurtherconditionsasitmayspecify,declarethatthelandidentifiedbythelicensee,withsuchmodificationstoitsboundariesastheCommissionmayspecify,isrequiredforthepurposeofgeneration,transmissionordistributionofelectricity.

(4)Nosuchdeclarationshallbegivenwithoutgrantingtothepersonhavinganinterestinthelandunderconsiderationanadequateopportunitytomakerepresentationsagainstsuchdeclaration.

(5)TheCommissionshallnotactundersubsection(3)ofthissectionunlessitissatisfied,uponrepresentationsmadebythelicenseeorproposedlicenseeconcerned,thattheelectricitygeneration,transmissionordistributionconcernedisnototherwisepracticable.

(6)FollowingadeclarationbytheCommissionundersubsection(3)ofthissection,thePresident,shallissueanoticeintheGazettetotheeffectthatthelandisrequiredbytheGovernmentoftheFederationforthepublicpurposesoftheFederation.

(7)Notwithstandingtheprovisionsofsubsection(3)ofthissection,theexceptionsandconditionstherementionedthereinshallincludesuchexceptionsandconditionsasappeartotheCommissiontobenecessaryorexpedientforthepurposeonensuringthat?

(a) thephysicalenvironmentisprotected;

(b) thereisnogreaterdamagetostreetsorinterferencewithtrafficthanisreasonablynecessary;and

(c) fundsareavailableformeetinganyliabilitieswhichmayarisefromtheexerciseofanyrightsorpowersundersubsection(1)ofthissection.

(8)AnypersonwhoisaggrievedbyanydecisionoftheCommissionmadeundersubsection(3)ofthissectionmayappealagainstsuchdecisioninaccordancewiththisAct.

(9)WherethePresidentissuesanoticeundersubsection(6),theGovernorshall,inaccordancewiththeprovisionsofsection28(4)oftheLandUseAct,revoketheexistingrightofoccupancyrespectingthelandandgrantofcertificateofoccupancyinfavouroftheconcernedlicenseeinrespectofthelandidentifiedbytheCommissioninsuchnoticeandthegrantofsuchcertificate,therightof

occupancyoverthelandshallvestinsuchlicenseetotheexclusionofthepreviousholderoftherightofoccupancyrespectingtheland,whoshallbeentitledtoclaimcompensationinaccordancewiththeprovisionsoftheLandUseAct.

[L.F.N.2004Cap.L5.]

(10)Agenerationlicensee,transmissionlicenseeanddistributionlicenseeshallbeentitledtoaccessrightsoverlands,buildingsandstreetsfordischargingitsobligationsunderitslicencetotheextentandinthemannerprescribedinregulationsissuedbytheCommission.

(11)Ifalicensee,whohasbeengivenarightofoccupancyoverlandundersubsection(8)ofthissection,ceasestorequirethelandforthepurposesofthelicensedactivity,thenthelicenseeshallofferthelandtothepreviousholderontherightofoccupancy,forrepurchaseatanamountequivalenttotheamountofcompensationpaidtothepreviousholderundersubsection(9)andtheprovisionsoftheLandUseActandifthepreviousholderdeclinestheoffertorepurchase,thelicenseemayoffertherightofoccupancytoanyotherpersononsuchtermsandconditionsastheCommissionmaydirect.

78. Useofcertainconduitsforelectricitypurposes

(1)Inthissection

"authority"includesalocalauthorityandastatutorybody;

"conduit"includesatunnelorsubway;

"relevantconduit"means

(a) awatermainoranyotherconduitmaintainedbyawaterauthorityforthepurposeofconveyingwaterfromoneplacetoanother;or

(b) apublicsewer.

(2)Thefunctionsofanauthoritywithcontrolofarelevantconduitshallincludethepowerto

(a) carryout,ortoauthoriseanypersontocarryout,anyworksinrelationtothatconduitfororinconnectionwiththeinstallation,maintenance,adjustment,repairoralterationofapparatusforpurposesconnectedwiththe