Section 232 Electricity Act 2023

Section 232 of the Electricity Act 2023 is about Interpretation. It is under Part XXII (Final Provisions) of the Act.

In this ACT —

“Act” means the Electricity Act;

“affiliates” in relation to a licensee means any holding company or subsidiary of the licensee or any subsidiary of a holding company of a licensee, and unless the Commission decides to the contrary, subsidiary status shall be presumed to arise from the ownership of or the power to vote, directly or indirectly ten percent or more of the voting securities of such entity and holding status shall be determined accordingly;

“Agency” means Rural Electrification Agency established under Part XV of this Act;
“ancillary services” means those functions necessary for reliable operation of a power system, which may include, but are not limited to, services that would provide or permit the following -~
(a) facilities scheduling, control and dispatch;

(b) reactive power, and voltage control;
(c) frequency regulation;
(d) operating reserves; and

(e) black start:
“animal waste” means manure or any other material like bedding, milk house waste, soil, hair, feather or debris normally included in animal waste handling operations;
“Auditor-General” means the Auditor-General for the Federation,
“Authority” means the National Electric Power Authority unbundled into successor companies as recognised under section 6 of this Act;

“bio-degradable” means material that has the -—-
(a) ability to break down safely and relatively quickly by biological means, into the raw materials of nature; or
(b) proven capability to decompose into non-toxic soil, water, carbon dioxide or methane;

“biogas” means gas that comprises primarily of methane and carbon dioxide produced by the biological breakdown of organic matter in the absence of oxygen and produced by anaerobic digestion or fermentation of biodegradable materials like biomass manure sewage, municipal waste, green waste and energy crops;
“biogas digester” means an equipment that has the capacity to degrade organic
matter to produce biogas;

“biomass” means organic matter like agricultural crops and residue, wood and wood waste, animal waste, aquatic plants and organic components of municipal
and industrial waste;

“captive generation” means generation of electricity for the purpose of consumption by the generator and which is consumed by the generator itself and not sold to a third party;
“Code of Conduct” means any rules established by the Commission governing behavior, relationships, ard practices between licensees and their affiliates;

“cogeneration” means a process which simultaneously produces two or more forms of useful energy (including electricity);

“Commission” means the Nigerian Electricity Regulatory Commission established under Part V of this Act:
“Companies and Allied Matters Act” means the Companies and Allied Matters Act, No. 3, 2020;
“competition transition charge” means any charge prescribed under section 13 of this Act;
“Constitution” means Constitution of the Federal Republic of Nigeria 1999, Cap.
C23, Laws of the Federation of Nigeria, 2004;

“consumer” means any end-user of electricity who is a customer of a distribution licensee, franchisee, mini- grid operator or other permit holders that is not an eligible customer and, for purposes of filing a complaint with the Commission and for any other reason that the Commission may determine, a person who is temporarily disconnected or otherwise without service, provided that a person who has applied for, but has yet to receive, service shall also be deemed to be a consumer;
“control area” means 2 transmission system or interconnected transmission systems, and interconnected generating units, bounded by metering and telemetry equipment that permits a system operator to apply a generation control scheme in order to —

(a) match the electrical output of the generating stations within the control area and energy purchased from entities outside the control area, less energy sold to entities outside the control area, with the load within the
control area;
(b) maintain scheduled interchange with other control areas, within the limits of good utility practice;
(c) maintain the frequency of the control area’s electric power systems within reasonable limits in accordance with good utility practice;

(d) maintain power flows on transmission facilities within appropriate limits to preserve reliability; and
(e) provide sufficient generating capacity to maintain operating reserves in accordance with good utility practice;

“cross subsidies” means the subsidisation of the tariffs by one class or group of consumers by another class or group of consumers;
“Council means the Governing Council established under section 84 (1) of this Act;

“Director-General” means the Director-General referred to under section 193 (1) of this Act;
“distribution” means the delivery of electricity over a distribution system;
“distribution license” means a license granted under section 63;

“distribution licensee” means a licensee authorised under this Act to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply of operation;
“distributing main” means the portion of any main with which a service line is, or is intended to be, immediately connected;

“distribution system’ means the system of facilities, as defined by the Commission, consisting wholly or mainly of low voltage (less than 132kV) electric lines used for the distribution of electricity from grid supply points to the point of delivery to consumers or eligible customers, and includes any electrical plant and meters operated in connection with the distribution of electricity, but shall not include any part of a transmission system;

“electric line” means any line which is used for carrying electricity for any purpose and includes —

(a) any support for any such line, that is to say, any structure, tower, pole or other thing in, on, by or from which any such line is, or may be, supported, carried or suspended; and
(b) any apparatus connected to any such line for the purpose of carrying electricity;

“electrical plant” means any plant, equipment, apparatus or appliance or any part thereof used for, or connected with, the generation, transmission, distribution or supply of electricity bus does not include —
(a) an electric line; or
(b) a meter used for ascertaining the quantity of electricity supplied to any
premises; or

(c) an electrical equipment, apparatus or appliance under the control of a
consumer;
“electricity” means electrical energy —
(a) generated, transmitted, distributed and supplied or traded for any purpose; or
(b) used for any purpose except the transmission of a message;

“electricity supply code” means the electricity supply code under the provisions of this Act;
“electricity system” means a system under the control of a generating company or
licensee, as the case may be, having one or more —
(a) generating stations,
(b) transmission lings, or
(c) electric lines and sub-stations, and when used in the context of a State the entire electricity system within the
territories;
“electricity trader” means a person who has been granted a license to undertake trading in electricity under section 69 of this Act:
“eligible customer” means and include a customer that is eligible, under the directives issued by the Minister under the Repealed Act and under the declaration made by the Commission under the provisions of section 12 of this Act, to purchase power from a licensee other than a distribution licensee;

“energy crop” includes a p ant —
(a) that can be directly exploited for its energy content,
(b) that is grown for the sole purpose of energy production but not for food production, or
(c) that is grown specifically for its fuel value;

“energy security” means the availability, adequacy, reliability and environmental sustainability of energy supply;
“energy sources” includes coal, wind, oil, gas or wood consumed in the generation of power;
“FEC” means the Federal Executive Council referred to under sections 3 (3) and 4 of this Act;
“feedstock” means a material that can be used to produce bio-fuel;

“franchisee” means a persons authorised by a distribution licensee to distribute electricity on its behalf in a particular area within his area of supply;
“functions” includes duties, roles, responsibilities and powers:

“generating station” or “station” means any station for generating electricity, including any building and plant with step-up transformer, switchgear, switch yard, cables or other appurtenant equipment, if any, used for that purpose and the site, a site intended to be used for a generating station, and any building used for housing the operating staff of a generating station, and where electricity is generated by water-power, includes penstocks, head and tail works, main and regulating reservoirs, dams and other hydraulic works, but does not in any case include any sub-station;
“generation” means the production at a generation station of electric power and other
generation products such as reactive power;

“generation license” means a license issued under section 65 of this Act;
“generating station” means a station for generating electricity, including buildings, plant and machinery and ail accessories used for that purpose and the site to be used for the station or accessories;

“generator of electricity” means the person that generates electricity from renewable energy sources and supplies it to the general public;
“geothermal energy” means energy extracted from heat stored in the earth;
“grid connection” means the linkage between a renewable energy system and the utility grid;
“grid interactive renewable electricity” means a system which has the capacity to feed electricity from renewable energy source into the utility grid;

“grid” means the high votage backbone system of inter-connected transmission lines, sub-stations and generating plants;
“grid code” means instructions, rules, procedures, guidelines for the operation and planning of an interconnected power system and accounting requirements relating to it; ,
“grid standards” means the grid standards issued by the Commission under the provisions of this Act;

“hydro” means a project that has a generating capacity not exceeding 100 megawatts;
“independent power producer” means an entity that is granted a generation license by the Commission or State Electricity Boards under the reform of the Nigerian Electric Power Sector under Repealed Act and include those licensed under this Act;
“IEDNs and IEDNOs” means independent electricity distribution network and independent electricity distribution network operators respectively, recognised under section 63(2)(b) and (7) of this Act;

“IETN and IETNOs” means independent electricity transmission network and independent electricity transmission network operators respectively, recognised under section 63(2)(b) and (7) of this Act:

“inspecting engineer” means a qualified person holding office under NEMSA as specified under Part XVII of this Act, including his deputy and his assistants.

“inspectorate service” means technical services provided by NEMSA in the electricity supply industry to ensure safety of use and reliability of supply and ensuring compliance with technical standards and regulations and includes inspectorate services carried out by the Commission:

“Institute” means the National Power Training Institute of Nigeria established under
section 185 (1) of this Act;
“ISO” Independent system operator means a system operator that is licensed by the Commission under Part [V of this Act;
“interim market” means the stage of the Nigerian electricity market between the completion of privatisation and start of pre-transitional and transitional electricity market stages as regulated under the interim market rules and the Grid Code;

“land” means land, tenements, hereditaments and appurtenances, or any estate or interest in it:
“Land Use Act” means the Land Use Act, Cap. LS, LFN 2004;

“landfill gas” means the gas produced inland fills due to the anaerobic digestion by microbes on any organic matter which can be collected and flared off or used to generate electricity in a thermal power plant;
“license” means a license issued by the Commission or State Electricity Board in accordance with the provisions of this Act;
“licensed facility” means a part of or the whole portion of a building, structure, equipment or plant that is licensed for the purpose of activities in the renewable energy industry;

“licensee” includes any person who holds a license or is deemed to hold a license issued under Part VI of this Act or under any other relevant provision of this Act;
“lifeline tariff” means a tariff set by the Commission with prices that incorporate cross subsidies by other customers and which may be enjoyed by such group of consumers as the Commission may designated under this Act:
“local authority” means a local government, municipal council, town council, rural district council or local beard;
“line” means any wire, cable, tube, pipe, insulator, conductor or other similar thing (including its casing or coating) which is designed or adapted for use in carrying electricity and includes any line which surrounds or supports, or is surrounded or supported by or is installed in close proximity to, or is supported, carried or suspended in association with, any such line:

“Managing Director” in relation to NEMSA means the Managing Director of NEMSA under Part XV= of this Act;

“Managing Director” in relation to the Agency means the Managing Director of the Rural Electrification Agerwcy established under Part XVI of this Act;
“medium term market” refers to the market stage between the end of the Transitional electricity market and before declaration long term electricity market by the Commission under section 8 of this Act.

“market power” means the ability of a seller or group of sellers to maintain prices above competitive levels, or maintain stable prices while reducing the quality of product and services provided, for a significant period of time;
“market rules” means rules issued by the Commission under the provisions of this Act;

“mini grid renewable power system” means a network of electricity supply from renewable energy technologies which is not connected to the grid;
“Minister” means the Minister responsible for power and include any other Minister to whom the President may assign administrative functions in respect of this Act;
“national grid” means any electrical power system that transcends the boundaries of one or more states in Nigeria or that is connected to a country outside Nigeria for the purpose of electricity generation, transmission, system. operation, distribution, supply and trading;
“NBET Plc” means the Nigerian Electricity Bulk Trading Company Plc to which sections 6 (f) and 7 (2) (d) of this Act applies:

“NEMSA” means the Nigerian Electricity Management Services Agency established under part XVIII of this Act;
“N-HYPPADEC” means the National Hydroelectric Power Producing Areas Development Commission established under section 82 of this Act;

“non-depleting resources” means resources thar replenish themselves or reproduce easily;
“ocean energy” means energy created by the power of ocean currents, waves and tides with the use of technology;
“off grid renewable power system’ means electricity supply from renewable energy technologies which is not connected to the grid:
“open access” means the non-discriminatory provision for use of transmission lines or distribution system: or associated facilities with such lines or system by any licensee or consumer or a person engaged ia generation in accordance with the regulations specified the Commission or in a license:

“other agencies” means NEMSA, N-HYPPADEC and NAPTIN established under this Act;
“overhead lines” means electric line which is placed above the ground and in the open air but does not include live rails of a traction system:

“person” includes an individual, company, partnership or any other association of individuals, whether incorporated or not;
“Power Consumer Assistance. Fund” means the Power Fund established under
section 97 of this Act;
“power purchase agreement” means an agreement that sets out the rights and liabilities between the generator of electricity and the distribution utility;

“power station” means an assembly of plant or equipment for the creation or generation of electricity o7 electrical energy.
“power system” means all aspects of generation, transmission, distribution and supply of electricity and includes one or more af the following —

{a} generating stations;
(b) transmission or main transmission lines;
(c} sub-stations;
(d) tie -lines;
{e) load dispatch activities;
(f) main or distribution mains:
(g) electric supply lines;
(h) overhead lines:
(i) service lines; end
(j) works.

“pre-transitional market’ refers to the stage of the Nigerian electricity market between the end of the interim market and before the declaration of a transitional electricity market by the Minister as regulated under the pre-transitional market rules and the grid code:

“production-based subsidy ‘ means financial assistance given for the generation of electricity;
“public utility” means an institution which provides a basic service to the public, including water, electricity, transportation, or telecommunications:

“REF” means the Rural Electrification Fund established under section 142 of this Act;
“regulations” means regulations made by the Commission under the provisions of this Act;
“relative” means spouse, child, parent, brother, sister, uncle, aunt, in-laws, cousins, and, where applicable, their spouses;

“relevant government authorities and other stakeholders” means those government authorities and stakeholders referred to under section 3 (1) of this Act
“renewable energy certificates” means a tradable environmental commodity that represents proof that electricity was generated from an acceptable source and which can be sold, traded or bartered by the owner of the certificate claiming to have purchased renewable energy;

“renewable energy companies” means a company licensed by the Commission to generate electricity from renewable energy sources and include a company issued a pertnit for mini-grid or to deal in renewable energy products and services by whatever description;

“renewable energy product” means goods and service produced from renewable energy;
“renewable energy resources” means natural resources such as sunlight, wind, rain, tides and geothermal heat. which are renewable and naturally replenished;
“renewable energy sources” means renewable non-fossil energy sources like wind, solar, geothermal, wave, t.-dal, hydropower, biomass, landfill gas; “renewable energy system” means equipment that transforms renewable energy sources into electrical or teat energy;
“REREF” means the Rural Electrification and Renewable Energy Fund established under section 142 of this Act:

“RESIP” means the Rural Electrification Straregy and Implementation Plan to be prepared under section 151 of this Act;
“Repealed Act” means the Electric Power Sector Reform Act, No. 6, 2005 and includes Acts repealed under section 232 of this Act;
“rules” means market rules approved by the Commission and include other rules made under the provisions of this Act:
“sewage gas” means biogas produced by the digestion and incineration of sewage sludge which can be used to generate energy;
“solid waste” includes waste that arises from domestic activity and is predominantly household and commercial waste collected by a municipality within a given area in a solid or semi-solid form but excludes industrial hazardous waste and toxic waste:
“Schedules” means the Schedules to this Act;
“TCN” means the Transmission Company of Nigeria Plc, the transmission licensee to which Part IV of this Act applies;
“security” means shares, debentures, bonds and other securities of a company recognised under the Companies and Allied Matters Act, Act, No. 3, 2020;

“service-line” means any electric Supply-line through which electricity is, or is intended to be, supplied —-
(a) to a single consumer either from a distributing main or immediately from the distribution licensee’s premises: or
(b) from a distributing main to a group of consumers on the same premises or on contiguous premises supplied from the same point of the distributing main;
“six geo-political zones” fer the time being means -——~
(a) North Central (consisting of Benue State, Nassarawa State, Niger State, Kogi State, Plate: State, Kwara State, Federal Capital Territory);
(b) North East (consisting of Bauchi State, Borno State, Gombe State, Yobe State, Adamawa State and Taraba State):
(c) North West (consisting of Kano state, Kaduna State, Katsina State, Jigawa State, Kebbi State. Sokoto State, Zamfara State);

(d) South-South (consisting of Delta State, Edo State, Rivers State, Akwa- Ibom State, Cross River State, Bayelsa State);
(e) South East (consisting of Anambra State, Abia State, Enugu State, Ebonyi State, Imo State); and
(f) South West (consisting of Lagos State, Ovo State, Ogun State, Osun State, Ondo State, Ekiti State);

“Stamp Duties Act” means the Stamp Duties Act, Cap. 88, Laws of the Federation of Nigeria 2004;
“State Electricity Board” means any body enacted by a Law of the House of Assembly of a State to be responsible for electricity matters within that State.

“street” means any street, highway, or road, or any part of a street, highway or road, and includes —
(a) any bridge, ferry or pontoon over which such street, highway or road passes;
(b) any drift in the line of such street, highway or road;

(c) any approach, culvert, cutting, dam, ditch, drain, embankment, fence, grid, guard, kerb, parepet, subway or other work or thing belonging to or connected with or forming part of such street, highway or road; and
(d) any sanitary lane or private street;

_ “sub-station” means a station for transforming or converting electricity for the transmission or distribution and includes transformers converters, switchgears, capacitors, synchronous condensers, structures, cable and other appurtenant equipment and any buildings used for that purpose and the site;

“successor companies “means the 18 companies listed in Part I of the First Schedule to this Act which were created following the restructuring of the Authority under the Repealed Act;
“supply”, in relation to electricity, means the sale of electricity to a licensee or consumer;
“supply license” means license granted under section 69 of this Act;
“system operation” means the operation of on2 or more transmission systems and “system operator” shall be construed accordingly;

“system operation license” means a license granted under section 67 of this Act;
“tariff” means a tariff approved by the Commission under the provisions of this Act that specifies the prices, terms and conditions wader which electricity service is to be provided;
“technical support services in relation to NEMSA established under Part XIX of this Act” means specialised technical services provided in the NESI by the NEMSA;

“technical support service” means specialised technical services provided in the Nigerian electricity supply industry by the Agency specified in Part XVI of this Act.
“trading” means any form of marketing, brokering or intermediation in the sale of electricity, whether or not it entails the purchase of electricity for resale, or whether – or not title is taken to the electricity sold;
“trading license” means a license issued under section 69 of this Act;
“tansmission” means the conveyance of electric power and energy over a transmission system;

“transmission licensee” means a person licensed to transmit electricity under the provisions of this Act;
“transmit” means conveyance of electricity by means of transmission lines and the expression “transmission” shall be construed accordingly;

“transmission system” means a system, as defined by the Commission, consisting wholly or mainly of high voltage (greater than or equal to 132kV) electric lines for the conveyance of electricity within an undertaking or from one undertaking to another, including any transmission lines, transformers, switchgear and other works necessary for and used in connection with such electrical equipment, and the buildings as may be required to accommodate the transformers, switchgear and other works:

“transmission lines” means all high pressure cables and overhead lines (not being an essential part of the distribution system of a licensee) transmitting electricity from a generating station to another generating station or a substation, together with any step-up and step-down transformers, switch-gear and other works necessary to and used for the control of suck cables or overhead lines, and such buildings or part of it as may be required to accommodate such transformers, switch-gear and other works:

“transitional electricity market” means to the stage of the Nigerian electricity market commenced between the end of the pre-transitional electricity and before the declaration of the medium term electricity market, and for the purpose of this Act;

“TSP” means transmission service provider recognised under section 15 (2) (b) of this Act.
“undertaking” means the electric lines or electrical plant, and includes all lands, buildings, works and materials attached to it belonging to any person acting as a generating company or licensee under the provisions of this Act;

“wheeling” means the operation whereby the distribution system and associated facilities of a transmission licensee or distribution licensee, as the case may be, are used by another person for the conveyance of electricity on payment of charges to be determined under the provisions of this Act: and

“works” includes electric line, and any building, plant, machinery, apparatus, and any other thing of whatever description required to transmit, distribute or supply electricity to the public and to carry into effect the objects of a license or sanction granted under this Act or any other law for the time being in effect.