Overview

The Electric Power Sector Reform Act, 2005 is a comprehensive legislation enacted by the Federal Republic of Nigeria to restructure and reform the country's electric power sector. The Act establishes the legal framework for the formation of initial and successor companies, transfers assets and liabilities from the National Electric Power Authority (NEPA) to new entities, and creates a competitive electricity market. It also establishes the Nigerian Electricity Regulatory Commission (NERC) to oversee and regulate the sector. Key provisions include the formation of an initial holding company to take over NEPA's assets and liabilities, the subsequent creation of successor companies for generation, transmission, and distribution, and the eventual privatization of these companies. The Act outlines licensing requirements, competition rules during pre- and post-privatization stages, and mechanisms for determining competition transition charges. It provides for the transfer of employees, exemption from stamp duty on transfers, and legal protections for successor companies. The document is structured into parts covering formation of companies, market development, and the establishment of the regulatory commission, with detailed sections on the commission's composition, powers, and functions.

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