Section 63 Electricity Act 2023
Section 63 of the Electricity Act 2023 is about Authorised persons to generate and transmit electricity. It is under Part VI (Licensing) of the Act.
(1) Without prejudice to the right of the States of the Federation to make laws and establish markets for the generation, transmission, system operation, distribution and supply of electricity within their respective territories, no person, except in accordance with a license issued under the provisions of this Act or deemed to have been issued as provided under this Act, shall construct, own, operate an undertaking other than an undertaking specified under subsection (2), or in any way engage in the business of —
(a) electricity generation, excluding captive generation;
(b) electricity transmission;
(c) electricity distribution:
(d) electricity supply,
(e) electricity trading; or
(f} system operation,
(2) Notwithstanding the provisions of subsection (1), a person may —
(a) construct, own or operate an undertaking for generating electricity not exceeding | megawatt (MW) in aggregate at a site or an undertaking for distribution for electricity with a capacity not exceeding 100 kilowatts (KW) in aggregate at a site, or such other capacity as the Commission may determine without a license: and
(b) construct, own, operate an undertaking for generation, transmission, distribution, supply and sale of electricity, including the construction, ownership and operation of mini grid, IEDN/IEDNOs or its IETN/IETNOs within a State under a law enacted by the House of Assembly of a State under section 2(2) of this Act, provided that such a license does not permit the licensee to provide inter-state or transnational distribution of electricity in Nigeria.
(3) Subject to the provisions of this Act, the Commission shall have the power to inquire into whether a person is engaging or is about to engage in a business for which a license is required under subsection (1).
(4) The Commission shall have the authority to order any person who contravenes subsection (1) to cease operations, and to make such other orders, including an order to-—
(a) temporarily confiscate the undertaking of the violator, pending conclusion of trial;
(b) direct the disconnection of the facilities of the violator;
(c) direct the violator to apply for the relevant license on such terms and conditions as the Commission may specify; or
(d) generally, direct the violator to take such steps as may be necessary to prevent the continuation or recurrence of the contravention.
(5) Without prejudice to subsection (4), any person who contravenes the provision of subsection (1), commits an offence and is liable on conviction to —
(a) a fine of at least 10 times the application and license fees for the relevant license contravened;
(b) imprisonment for a term not exceeding five years; or
(c) both such fine and imprisonment as well as an order for permanent forfeiture of the undertaking to the Commission.
(6) The Commission shall have the authority to penalise a licensee for violations of its license terms and conditions or to cancel such license in accordance with the provisions of this Act.
(7) Notwithstanding the provision of subsection (1), it shall be the responsibility of the State Electricity Board or any State authority by whatever appellation, to grant license for mini-grids [SDN/IEDNOs and IETN/IETNOs and provide the framework for the operation of such licensees, including framework for investment in electricity
utilities within the State:
Provided that the Commission shall retain and exercise regulatory powers over mini-grids, IEDN/AEDNDOs and IETN/IETNOs in any State of the Federation where such a State —
(a) has no legal and institutional framework in place for the regulation of mini-grids, IEDNs, IETNs or related electricity services; or
(b) the operation of such TEDN/IEDNOs, IETN/AIETNOs or electricity generation, transmission and distribution undertaking within any State of the Federation relies on any part of the national grid for its operations.
