Section 19 Electricity Act 2023
Section 19 of the Electricity Act 2023 is about Transfer of employees, assets, and liabilities. It is under Part IV (Incorporation and Licensing of ISO) of the Act.
(1) The order issued by the Commission under section 15 (2) (c) of this Act shall state the date for the commencement and completion of transfer of relevant employees, assets, liabilities, and novation of market and system operation related contractual rights and obligations of the Transmission Company of Nigeria to the ISO.
(2) A transfer order shall be binding on the Transmission Company of Nigeria, the ISO and all other persons.
(3) The provisions of subsection (2) shall apply notwithstanding the provisions of any general or special enactment of the National Assembly or any rule of law that requires notice or registration of transfers.
(4) A transfer order may specify and describe employees, assets, liabilities, rights and obligations to be transferred —
(a) by reference to specific employees, assets, liabilities, rights and obligations;
(b) by reference to any class of employees, assets, liabilities, rights and obligations; or
(c) partly in accordar.ce with the provisions of subsection (4)(a) and partly in accordance with subsection (4)(b).
(5) With effect from the date specified in the relevant transfer order, all bonds, loans, financing agreements, alternative financing agreements, deeds, contracts instruments, documents and such other working arrangements that subsisted prior to the transfer date and relating to the assets to be transferred under the provisions of this section and to which the Transmission Company of Nigeria Plc was party to as the holder of the transmission license that covers transmission service provider, market and system operation functions shall, on and after the effective date, be as fully effective and enforceable against, and in favour of the ISO as if, instead of the Transmission Company of Nigeria Plc, the 1SO had been named in it.
(6) A transfer order may —
(a) specify the date that the transfer takes effect and any interest in the property that is being transferred by the order shall vest in the ISO on that date:
(b) provide that the transfer shall be deemed to have taken effect on a date earlier than the date the transfer order is made, but the transfer date shall not be earlier than the dates on which the ISO was incorporated and licensed;
(c) provide that the transfer specified in the order and other transactions associated with the transfers shall be deemed to have occurred in sequence and at times specified in the order;
(d) require the Transmission Company of Nigeria Pie or the [SO to enter to
(i) enter into any written agreement or execute any instrument specified a the order, and
(ii) register in accordance with the order, any agreement or instrument entered into or executed under subsection, OGG
(e) provide that any |:ability or obligation that is transferred by the order may be enforced against the ISO or relevant successos, and that any right that is transferred by the order may be enforced against the ISO; or
(f) impose conditions on the exercise of powers by the ISO that are related to employees, assets, liabilities, rights or obligations transferred by the transfer order.
(7) A transfer order may contain provisions dealing with other matters not specifically referred to in this Part that the Commission considers necessary or advisable in connection with a transfer,
(8) The subscribers to the incorporation documents of the ISO shall vest in the ISO any further assets as they may deem fit.
