Yes. Apart from the above stated licenses, you will need other licenses to be able to completely operate in any area of the electricity business. However, this is also subject to the Nigeria Electricity Regulatory Commission. The total licenses in the Electric power Sector are;
i. Generation license.
ii. Transmission license.
iii. System operation license.
iv. Distribution license.
v. Trading license.
Section 64 – 68 EPSRA 2005.
To successfully apply to be registered as a Disco in Nigeria, you will have to make a written application to the Minister in charge of power who will then issue you with a license upon satisfaction that you have met the requirements. Also, you are to pay the required fee and attach it with your application and an evidence of a notice approved by the minister. This must then be served on:
i. The local authority concerned.
ii. The local water supply authority.
iii. The Director of posts and Telegraphs.
iv. The owner of any other electric line intersected by the proposed works.
This will be necessary where the application involves the placing of any works or electric lines on or across, under or over any public place. Also, the applicant must show evidence that his proposed works are not objected to or subjected to certain conditions. Regulation 5 Electricity (Private Licenses) Regulations Cap E7 LFN 2004.
Of course. Any one particular License obtained is subject to restrictions. In fact, each license has on it certain terms and conditions that the Licensee must abide by. It is compulsory that the terms as stipulated in the license are complied with. Also, a license obtained cannot be transferred except with the permission of the Commission.
Section 69 EPSRA 2005
A license once issued can last up to twenty five (25) years but not more. A license may also be lesser than twenty five (25) years.
Where an applicant has served notice of his application in conformity with the electricity (private license) regulations, the application will be deemed to have been approved if at the expiration of 30 days following the date of service of the application the recipient has failed to take any action on the matter.
Regulation 13 Electricity (Private Licenses) Regulations Cap E7 LFN 2004
Generally, a license once granted cannot be assigned or even delegated. The benefits and obligation must remain with the licensee. However where an application is made to the Minister for this purpose and he grants consent, then a licensee can be assigned on his authority.
Regulation 9 Electricity (Private Licenses) Regulations Cap E7 LFN 2004
Yes. Upon the grant of a license, the areas where the license will supply the electricity to are covered by the license. The licensee cannot operate beyond the area covered by the license.
Regulation 14 Electricity (Private Licenses) Regulations Cap E7 LFN 2004
The Nigerian Electricity Regulatory Commission otherwise simply referred to as the “Commission” has the following functions;
i. To ensure that adequate electricity is available to consumers.
ii. Promote competition and private sector participation when and where feasible.
iii. License and regulate those engaged in the generation, transmission, system operation, distribution and trading of electricity.
See generally Section 32(1)(2) Electric Power Sector Reform Act, 2005 for all the functions of the commission.
No, grant of license for generation and/or distribution of electricity power is not required in all situations. A license to operate is not required in a case where a person is generating electricity not exceeding one (1) Mega Watt in aggregate at a site.
Also (2) where the distribution of electricity does not exceed 100 kilowatt in aggregate at a site, a license need not be obtained. Section 62(2) Electric Power Sector Reform Act 2005 hereinafter called (EPSRA 2005) AP Foods Ltd. V. EXUSIA Power & Gas Ltd. Case No. NERC/14/001
As stated by you, the license you obtained is for distribution purpose only and not for trading. A distributing license authorizes the licensee to construct, operate and maintain a distribution system and facilities and not trading. Basically you will need a trading license to be able to trade in electricity.
Sections 67 and 68 EPSRA 2005; AP Foods Ltd. V. EXUSIA Power & Gas Ltd. Case No. NERC/14/001 delivered December, 2015
Yes. You can apply that the condition upon which a license issued to you be varied. However, any such variation is subject to the discretion of the Minister who is also at liberty to approve or reject your application.
Regulation 8 Electricity (Private Licenses) Regulations Cap E7 LFN 2004.
Where during the term of a license authorizing the use of a private generating plant, a public supply of electricity can be made available by the corporation with or without the need for a capital contribution, the appropriate authority may serve 90 days’ notice in writing informing the licensee that he should cease operating the generating plant forming part of the licensed installation at the expiration of the said notice.
Regulation 10 Electricity (Private Licenses) Regulations Cap E7 LFN 2004
Yes. An issued license can be revoked at anything time;
i. When the licensee during the currency of a license surrenders it for cancellation so that all rights and privileges conferred upon the licensee cease to have effect.
ii. Where the Minister is satisfied that the installation has not been carried out, operated or maintained in strict compliance with the law.
Regulation 15 Electricity (Private Licenses) Regulations Cap E7 LFN 2004.
Yes. Upon the grant of a license, the areas where the license will supply the electricity to are covered by the license. The licensee cannot operate beyond the area covered by the license.
Regulation 14 Electricity (Private Licenses) Regulations Cap E7 LFN 2004