Section 7 Electricity Act 2023
Section 7 of the Electricity Act 2023 is about Competition during the post-privatisation stage. It is under Part III (Development of a Competitive National Electricity Market) of the Act.
(1) From the commencement of this Act, the Commission shall, without prejudice to its powers under section 34 of this Act, have the continuing responsibility in the post – privatisation stage of the NESI, to ensure the development of the Nigerian electricity market from its current transitional electricity market stage to the medium term and long-term electricity market Stages or such stages of the market in accordance with such terms, preconditions or features as may be prescribed in the market rules or amendment to such rules as may be approved by the Commission.
(2) For the purpose of subsection (1) and preparatory to the initiation of medium term and long-term electricity market sages as recognised under this Act, the Commission shall —
(a) monitor arid ensure that the market operator and market participants in the transitional electricity market perform their respective responsibilities as stipulated under :his Act and the market rules, prescribing timelines for completion of such responsibilities and imposing sanctions to ensure strict and timely compliance where necessary;
(b) monitor and ensure that the market participants and the market operator perform their responsibilities as stipulated under this Act in relation to preparation for the initiation of the medium and long-term electricity markets stages respectively, prescribing timelines for completion of such responsibilities and imposing sanctions to ensure strict and timely compliance where necessary;
(c) prepare and submit annual reports on the market conditions, including advice to the Minister on the end of the transitional electricity market and the establishment and operational dates for the medium and long-term
markets respectively taking into consideration the satisfaction of the preconditions and features for operationalising the medium term and long-term market as prescribed in the market in rules; and
(d) by its directive and within such period as it may specify, direct NBET Plc, the trading licensee holding the license for the bulk procurement and bulk sale of electricity and ancillary services, to, in accordance with its license, cease to enter into contracts for the purchase and resale of electricity and ancillary services and novate its existing contractual rights and obligations to other licensees. .
(3) At any time following the establishment of a substantially privatised market recognised by section 6 of this Act, the Transmission Company of Nigeria Plc may transfer the function of system operation to an ISO on such terms and conditions as the Commission may direct and on such transfer, the ISO shall be subject to the same powers and duties as have been imposed on the transferring successor company under this Act in relation to system operation.
