ELECTRIC POWER SECTOR REFORM ACT, 2004

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ELECTRIC POWER SECTOR REFORM ACT, 2004

LAWS OF THE FEDERATION OF NIGERIA

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EXPLANATORY MEMORANDUM

This Act provides for the formation of companies to take over the functions, assets, liabilities, and staff of the National Electric Power Authority; develop competitive electricity markets; establish the Nigeria Electricity Regulatory Commission; provide for the licensing and regulation of the generation, transmission, distribution and supply of electricity; enforce such matters as performance standards, consumer rights and obligations and to provide for the determination of tariffs. It also repeals the Electricity Act and the National Electric Power Authority Act.

ARRANGEMENT OF SECTIONS

PART I – FORMATION OF INITIAL AND SUCCESSOR COMPANIES AND THE TRANSFER OF ASSETS AND LIABILITIES OF THE NATIONAL ELECTRIC POWER AUTHORITY

1.     Formation of the initial holding company.

2.     Shareholding in the initial holding company.

3.     Transfer of assets and liabilities of the Authority to the initial holding company.

4.     Exemption from stamp duty.

5.     Transfer of employees to the initial holding company and to the Commission, etc.

6.     Direction to the Authority.

7.     Licensing of the initial holding company.

8.     Formation of successor companies.

9.     Shareholdings in the .successor companies.

10.    Transfer of assets and liabilities of the initial holding company to the successor companies.

11.    Conclusive evidence.

12.    Release from liability or obligation.

13.    Enforcement or continuation of any cause of action or proceedings.

14.    Limitation of suit against a transferee.

15.    A transfer shall not be deemed to constitute a breach of contract.

16.    Provision of records etc to a transferee.

17.    Further order amending a transfer order.

18.    Regulations.

19.    Guarantee or surety.

20.    Consideration for the transfer of assets to successor companies.

21.    Transfer of employees to the designated successor companies and conditions of services of transferred employees.

22.    Directions to the initial holding company.

23.    Licensing of the successor companies.

24.    Processing of privatization of the successor companies.

PART II – DEVELOPMENT OF A COMPETITIVE ELECTRICITY MARKET

25.    Competition during the pre-privatization stage.

26.    Competition during the post-privatization stage.

27.    Ministerial directives respecting eligible customers.

28.    Ministerial directives respecting competition transition charges.

29.    Commission’s determinations respecting competition transition charges.

30.    Public hearing respecting competition transition charges.

PART III – ESTABLISHMENT, FUNCTIONS AND POWERS OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION

31.    Establishment of the Commission.

32.    Objects and Functions of the Commission.

33.    General policy directions.

34.    Appointment of Commissioners.

35.    Terms of office and conditions of service of Commissioners.

36.    Conditions for appointment as Commissioner.

37.    Vacation of office by Commissioner.

38.    Dismissal or suspension of Commissioners.

39.    Filling of vacancies in the Commission.

40.    Chairman and Vice-Chairman of the Commission.

41.    Meetings and procedure of the Commission.

42.    Remuneration and expenses of Commissioners.

43.    Commissioners to disclose certain connections and interests.

44.    No invalidity of decisions and acts of the Commission.

45.    Proceedings of the Commission.

46.    Decisions and orders of the Commission.

47.    Commission to give notice to interested parties.

48.    Commission to consult experts on technical questions.

49.    Questions of law may be referred to the High Court.

50.    Rehearing and Appeals.

51.    Annual programmes and budgets of the Commission.

52.    Funds of the Commission.

53.    Surplus funds of the Commission.

54.    Financial year of the Commission.

55.    Accounts of the Commission.

56.    Audit of the Commission’s accounts.

57.    Powers of auditors.

58.    Execution of contracts and instruments by the Commission.

59.    Reports of the Commission.

60.    Staff of the Commission.

61.    Exemption from liability for the Commission.

PART IV – LICENSES AND TARIFFS

62.    Licensing requirement: fines and penalties.

63.    General duties of licensees.

64.    Generation licenses.

65.    Transmission licenses.

66.    System operation license.

67.    Distribution licenses.

68.    Trading licenses.

69.    Restrictions on licenses.

70.    An application for a license.

71.    Terms and conditions of licenses.

72.    Renewal of licenses.

73.    Amendment of Licenses.

74.    Cancellation of licenses.

75.    Enforcement of licenses.

76.    Tariffs.

77.    Special provisions relating to generation, transmission and distribution companies.

78.    Use of certain conduits for electricity purposes. .

PART V — ACQUISITION OF LAND AND ACCESS RIGHTS

79.    Notice of construction of railways, roads and telecommunication works and control of other works.

PART VI — CONSUMER PROTECTION AND LICENSEE PERFORMANCE STANDARDS

80.    Consumer protection standards.

81.    Performance standards and codes.

PART VII — COMPETITION AND MARKET POWER

82.    Competition and market power.

PART VIII – THE POWER CONSUMER ASSISTANCE FUND

83.    Establishment of the Power Consumer Assistance Fund.

84.    Contribution rates for the Power Consumers Assistance Fund.

85.    Contribution payments for the Power Consumers Assistance Fund.

86.    Payments from the Power Consumers Assistance Fund.

87.    Fine for non-payment of money owed.

PART IX – RURAL ELECTRIFICATION FUND

88.    Establishment and purpose of the Rural Electrification Agency,

89.    Contribution rates for rural electrification.

90.    Contribution payments for rural electrification.

91.    Criteria for allocation of resources from the Rural Electrification Fund.

97.    Fine for non-payment for amount owed.

PART X — OFFENCES

93.    False declarations.

94.    Offences.

PART XI — GENERAL

95.    Inspectors.

96.    Regulation.

97.    Disclosure of confidential information and use of information acquired by inspectors, etc for personal gain.

PART XII — CONSEQUENTIAL AND TRANSITIONAL PROVISIONS

98.    Consequential and transitional provisions (Cap. 106 LFN 1990, Cap. 256 LFN 1990).

99.    Repeal of Cap. 256 LFN 1990.

PART XIII  — INTERPRETATION AND CITATION

100. Interpretation.

101. Citation.

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ELECTRICITY POWER SECTOR REFORM ACT, 2005

An Act to provide for the formation of companies to takeover the functions, assets, liabilities and staff of the National Electric Power Authority, to develop competitive electricity markets, to establish the Nigeria Electricity Regulatory Commission; to provide for the licensing and regulation of the generation, transmission, distribution and supply of electricity; to enforce such matters as performance standards, consumer rights and obligations; to provide for the determination of tariffs; and to provide for related matters.

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[Commencement.] [11th March, 2005]                                             

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