Section 230 Electricity Act 2023

Section 230 of the Electricity Act 2023 is about Consequential and transitional provisions. It is under Part XXII (Final Provisions) of the Act.

(1) Notwithstanding anvthing to the contrary contained in this Act —

(a) the Commission, the Agency, NEMSA and other Agencies established under this Act including any other entity established and constituted under the Repealed Act or under the Acts repealed and enacted under this Act, before the commencement of this As. shall be deemed established and constituted under the relevant provisions of this Act and the Commission, the Agency, NEMSA and other Agencies established under this Act shall continue to operate and perform their respective functions as if the Repealed Act or the Acts repealed and enacted were in effect and the provisions of this Act shall apply accordingly with respect to their functions, legal personality and all their activities;

(b) any license, licensee, certificate, authority, permit, tariff, market rules, regulations, orders, directives, codes and standards or other subsidiary legislation whatsoever which was issued or recognised by the Commission under the Repealed Act and other Acts repealed and enacted under this Act and which had effect immediately before the commencement of this Act, shall continue to have effect to the extent that they have not been amended by this Act or where necessary an amendment is carried out to bring them into conformity with the provisions of this Act;

(c) any tariff, price, levy or surcharge which was in effect and chargeable within any area in respect of the provision of electricity to consumers or to any particular consumer or undertaker (if any), before the
commencement of this Act shall continue to be in effect and chargeable in respect of provision of electricity to those or similar consumers by a licensee who provides electricity within the area concerned until alternative provision is made in respect of such tariff, price, surcharge, under the provisions of this Act;

(d) subject to the provisions of this Act, any permission granted, direction given or anything whatsoever made, done or commenced which, before the commencement of this Act had or was capable of acquiring effect and effect under the Repealed Act and other Acts repealed and enacted under this Act, shall, on and after the commencement of this Act, continue to have, or as the case may be, to be capable of acquiring effect and effect as it had been granted, given, made, done, or commenced as the case may be, under the equivalent provisions of this Act; and

(e) any cause of action or proceeding which existed or was pending or enforced by or against a licensee, permit holder, the Commission, the Agency, Ministry, NEMSA, or other Agencies under the provisions of the Repealed Act before the commencement of this Act, shall be enforced or continued, as the case may be, on or after the commencement of this Act by or against the a licensee, permit holder, the Commission, the Agency,
Ministry, NEMSA, or other Agencies same way that it might have been enforced or continued against the licensee, permit holder, the Commission, the Agency, Ministry, NEMSA, or other Agencies under the Repealed Act or other Acts repealed aid enacted under this Act.

(2) A State of the Federation may at any time —-

(a) enact a law by whatever appellation to provide for the establishment of a State electricity market;
(b) establish a State electricity regulatory authority for the State (“the State regulator”) and appoint a governing body and staff for the said entity;
(c) deliver a formal notification of the events in paragraphs (a) and (b) above and request the Commission to transfer regulatory authority over electricity operations in the State to the State regulator; and

(d) deliver a formal notification of the events in paragraphs (a) and (b) to the relevant successor electricity distribution licensee (“the successor company”), with a copy to the National Council on Privatisation (“NCP”)
through the Bureau of Public Enterprises, requesting them both to ensure that the successor company takes the steps set out in subsection (3).

(3) Within 45 days of receiving formal notification of the enactment of the law under subsection (1), the Commission shall draw up and deliver to the State regulator a draft order setting out a plan and timeline for the transition of regulatory responsibilities from the Commission to the State regulator, which transition shall be completed not later than six months from the date on which the formal notification in subsection (1) was delivered to the Commission.

(4) Where a State takes the steps provided in subsection (2), the successor company responsible for electricity distribution in that State shall upon receiving formal notification from the Commission —
(a) within two months of receiving the said notification, incorporate ansubsidiary electricity distribution company under the Companies and Allied Matters Act (“the additional successor company”); end
(b) transfer the assets, liabilities, employees and the relevant contractual rights and obligations of the successor company in that State (“the transfer”).

(5) The transfer shall —
(a) not constitute a fraud on the creditors of the successor company; and
(b) be undertaken by agreement, as to the treatment of relevant liabilities, between the creditors, the successor company, the additional company and, where necessary, the Commission, the State electricity regulatory authority and any other relevant third party; and
(c) shall not impose a condition on the Government of a State to take on any of the liabilities of the successor company or guarantee their repayment.

(5) The provisions of subsection (2) shall be implemented notwithstanding the provisions of any general or specific enactment of the National Assembly or any applicable law, rule or contract that requires notice, consent, approval or registration of such transfer and no stamp duty and capital gains tax shall be chargeable or levied by the relevant tax authorities in respect of the transfer,

(6) On the completion of the transfers under subsections (2) and (3), whichever occurs later in time, the Commission shall have no further regulatory responsibility whatsoever for electricity market activities carried on entirely within the State to which regulatory responsibility has been transferred and for which the additional successor company has been incorporated and conferred with assets, liabilities, employees, rights and obligations.

(7) An additional successor company incorporated and licensed by a State regulator as provided shall, on the completion of the transfers under subsection (2) and (3), and the issuance of a license, be under the regulatory oversight of the State regulator and shall have no further obligation to pay any form of license fees to the Commission.

(8) Notwithstanding the provisions of section 63 (1) and subsection (5), the generation, transmission, system operation and distribution of electricity in a State that has not exercised its option under subsection (2) shall continue to be regulated by the Commission in accordance with the provisions of this Act until such time as that
State exercises the option.

(9) The Commission ani all State electricity regulatory authorities shall have a continuing obligation to foster and maintain a beneficial inter-institutional relationship amongst themselves and accordingly they shall establish an inter-governmental body to promote harmonious relationships with each other individually and as a group and for coordinating the development of principles, standards and rules for the reduction of regulatory risk in the Federal and State electricity markets in the country.