Section 16 Electricity Act 2023

Section 16 of the Electricity Act 2023 is about Subscribers to the constitutional documents of the ISO and its objects. It is under Part IV (Incorporation and Licensing of ISO) of the Act.

(1) At the time of incorporation, the subscribers to the incorporation documents of the ISO shall be as may be directed by the Commission in consultation with relevant stakeholders.

(2) The Commission shall ensure that the constitutional document of the ISO submitted to the Corporate Affairs Commission for incorporation includes the following objects
(a) to hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify;
(b) to carry out all market and system operation related contractual rights and obligations novated to it by the Transmission Company of Nigeria;

(c) to negotiate and enter into contract for the procurement of ancillary services with independent power producers, successor generation licensees, and generally perform market and system operations functions
as specified under this Act and the terms of its license in the interest of market participants and system users;

(d) the income and property transferred to it by the TCN or whenever derived shall be applied solely towards the promotion of its objects as set out in its incorporation documents, and no portion of it shall be paid or transferred directly or indirectly by way of dividend, or bonus, by way of profit to the subscribers:
provided that nothing in this section shall prevent the payment in good faith of remuneration to any contractor or staff of the company in return for any services rendered to the Company.