Section 72 Electricity Act 2023
Section 72 of the Electricity Act 2023 is about Terms and conditions of licences. It is under Part VI (Licensing) of the Act.
(1) A license shall be issued subject to such terms and conditions as may be prescribed, or as the Commission may reasonably determine, including terms and conditions prescribing the use of a tariff methodology approved by the Commission under Part X of this Act.
(2) Subject to subsection (1), a license may contain specific or general conditions which shall apply either to a licensee or class of licensee and may require the licensee to —
(a) enter into agreements on specified terms with other persons for the provision of or use of electric lines and associated equipment operated by the licensee;
(b) purchase power and other resources in an economical and transparent manners; and
(c) refer disputes to the Commission for arbitration, mediation, or determination by the Commission and file appeal against the decisions of the Commission; and
(d) comply with such renewable purchase obligations or renewable generation obligations as may be prescribed by the Commission under the provisions of this Act to promote generation and consumption of energy from renewable sources.
(3) In the case of a license issued to an applicant referred to in section 75(3), the license may be issued subject to the condition that the licensee shall divest itself within a specified time of any holding of shares in another licensee or such other conditions, including adherence to codes of conduct, that the Commission determines to be in the public interest.
(4) In issuing or renewing a distribution license, the Commission may impose a condition requiring the licensee to make such reasonable provision as may be specified by the Commission in the license for the facilitation of rural electrification in the proximity of the service, having due regard to the tariff methodology established by the Commission under Part XI of this Act.
(5) A license may require the licensee to provide information to the Commission on a periodic basis, in suca form and detail as the Commission may determine.
(6) Unless expressly indicated in the license, the grant of a license shall not hinder or restrict the grant of a license to another person for a like purpose and, in the absence of such an express indication, the licensee, shall not claim any exclusivity:
Provided that the Commission may allow a licensed activity to be exclusive for all or part of the period of the license, for a specific purpose, for a geographical area, or for some combination of the terms.
(7) A license may contain terms and conditions for the license to cease to have effect or to be modified or amended by the Commission in such circumstances as may be specified in the license or as may be determined by the Commission.
(8) As a condition of its license, every licensee shall, unless expressly exempted by its license, prepare and submit to the Commission each year such accounting information as the Commission may require.
(9) The Commission shall include in each license, such details as it may consider necessary, regarding the rights and obligations of the licensee, and procedures to be followed, at the end of its license term.
(10) The tenure or duration of a license may be open or shall be valid for such duration as stipulated in such license granted by the Commission:
Provided that the Commission shall reserve the discretionary power to cancel, suspend, amend or renew any license taking into account the performance track record of the licensee, the nature of the undertaking, public interest and the provisions of this Act relating to amendment, suspension, cancellation or renewal of licenses.
(11) Every license shall be deemed to contain a provision that the licensee complies with the market rules to the extent applicable to the licensee.
