Section 69 Electricity Act 2023
Section 69 of the Electricity Act 2023 is about Trading licenses. It is under Part VI (Licensing) of the Act.
(1) A trading licensee shall be permitted io engage in the purchasing, selling, and trading of electricity and the Commission shall determine the terms and conditions of trading licenses as may be appropriate in the circumstances, and having due regard to the nature of the activities in which the licensee intends to engage.
(2) For the purpose of giving effect to the provisions of section 7(2(d) of this Act and ensure smooth transitioning of the market without interruption , the Commission Shall, at the stage of the market it considers appropriate, issue such number of trading licensees as it considers appropriate, authorising such trading licensees to purchase, sale and trade in electricity and specifying the technical requirements, capital adequacy requirements, credit worthiness and such other terms and condition as may be stipulated in such trading licenses.
(3) Trading licenses issued by the Commission under provisions of subsection (2) shall authorise the trading licensees to —
(a) enter into novation agreements with the trading licensee provided under section 6(f) of this Act for the novation of the contractual rights and obligations for purchase and resale of electricity and ancillary services in
accordance with section 7(2) (d) of this Act; and
(b) enter into contract with successor generating companies, independent power producers and other generators for the purchase and resale of electricity and ancillary services.
(4) All contracts for purchases of electrical power and ancillary services by the trading licensees described under section 6 (f) and the holders of trading licenses issued by the Commission under the provisions of subsection (2) shall be awarded according to an open, transparent, and competitive manner, under a procedure established by
the Commission, unless the circumstances require otherwise, and the Commission allows or requires an alternative method.
