Section 75 Electricity Act 2023
Section 75 of the Electricity Act 2023 is about Intervention powers in failing licensees. It is under Part VI (Licensing) of the Act.
(1) The Commission shall, on its own initiative or upon a complaint from any consumer, eligible customers, consumer associations, shareholder in a licensee company or a licensee, inquire into the conduct or functioning of any licensee in carrying out its obligations under its license and the provisions of this Act.
(2) Where upon an inquiry made under subsection (1), the Commission determines that the licensee is in grave situation as regards the matters referred to under subsection
(3), the Commission shall exercise one or more of the following powers as may be necessary for maintaining continuity in the provision of electricity service —
(a) issue an interim order for the dissolution and removal of the Board of Directors of such a licensee company and appointment of administrators and special directors to manage the affairs of the undertaking until such a
period as may be specified in the order notwithstanding anything contained in any written law and the memorandum and articles of association of the licensee company;
(b) issue an order requiring the licensee to take any such action or not take any action, in relation to the undertaking of the licensee, its directors, or officers which the Commission may consider necessary within a specified time notwithstanding anything contained in any written law and the memorandum and articles of association of the licensee company; or
(c) employ any other regulatory intervention tools as the Commission may deem fit in the given circumstance.
(3) The Commission shall invoke its powers to intervene in failing licensees if it determines after an inquiry made under subsection (1) that the licensee —
(a) informs the Commission that it is unable to discharge its obligations under this Act and its license;
(b) is in prolong default in carrying out anything required of it under this Act, regulations or directives of the Commission and its license;
(c) has been plague by such a protracted management crisis that it has become detrimental to the interest of shareholders, consumers and the overall operations of the undertaking; or
(d) has insufficient assets to cover its liabilities to lenders and it is in eminent risk of receivership from lenders.
(4) If after taking any or all the steps stipulated under subsection (2) or such other measures as in the opinion of the Commission is appropriate in the circumstance, the state of affairs of the licensee does not improve, the Commission shall invoke its powers to revoke the license of the concerned licensee.
