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NIGERIAN ELECTRICITY REGULATORY COMMISSION

(NERC)

PUBLIC NOTICE

REGULATIONS ON LICENCE AND OPERATING FEES

In exercise of the powers conferred under Section 96 (2) (h) of the Electric Power Sector Reform Act, the Nigerian Electricity Regulatory Commission has approved the following Regulations on Licence and Operating Fees.

BY ORDER OF THE COMMISSION

Dr. Ransome E. Owan

Chairman/CES

In exercise of the powers conferred under Section 96 (2) (h) of the Electric Power Sector Reform Act, 2005 (Act no. 6 of 2005), the Nigerian Electricity Regulatory Commission hereby makes the following Regulations for Licence and Operating Fees.

Arrangement of Clauses

Chapter I

GENERAL

1. Short Title and Commencement.

2. Definitions and Interpretation.

CHAPTER II

LICENCE FEES

3. Application Fee

4. Licence Fees.

5. Amendment and Renewal Fees.

CHAPTER III

OPERATING FEES

6. Annual Operating Fees.

CHAPTER IV

MISCELLANEOUS

7. Amendment

8. Inherent Powers of the Commission.

CHAPTER I

GENERAL

1. Short Title and Commencement

(1) These Regulations may be cited as the Nigerian Electricity Regulatory Commission (Licence and Operating Fees) Regulations, 2006

(2) These Regulations shall come into force on the date determined by the Commission.

(3) These Regulations shall be signed by the Chairman who shall also cause the seal of the Commission to be affixed thereon.

2. Definitions and Interpretation:

(1) In these Regulations, unless the context otherwise requires:

“Act” means the Electric Power Sector Reforms Act, 2005

“Commission” means the Nigerian Electricity Regulatory Commission.

“Applicant” means a person who has applied to the Commission for a licence.

“Fees” means fees mentioned in the Schedule.

“Licensee” mean the holder of a licence issued by the Commission.

“Person” includes an individual, company, partnership, or any association of individuals whether incorporated or not.

“Regulations” mean the Nigeria Electricity Regulatory Commission (Licence and Operating Fees) Regulations, 2006.

“Schedule” refers to the “Schedule of Licences, Validity Period, Fees and Other Charges” annexed to these Regulations.

(2) Words and expressions used and not defined in the Regulations but defined in the Act shall have the meanings assigned to them in the Act.

(3) In the interpretation of these Regulation, unless the context otherwise requires:

a) Words importing any one gender includes the other gender and the singular includes the plural and vice versa.

b) References herein to the “Regulation” shall be construed as a reference to these Regulations as amended or modified by the Commission from time to time in accordance with the applicable laws in force.

c) The headings are inserted for convenience and may not be taken into account for the purpose of interpretation of these Regulations.

d) References to statutes, regulations or guidelines shall be construed as including all provisions consolidating, amending or replacing such statutes, regulations or guidelines, as the case may be.

CHAPTER II

LICENCE FEES

3 Application Fees

(1) Every application for a licence made to the Commission shall be accompanied by the Application Fees as specified in the Schedule.

(2) The Fees payable under these Regulations shall be paid by means of bank draft or cheque drawn in favour of the ‘Nigerian Electricity Regulatory Commission’.

(3) All Fees received by the Commission under these Regulations shall be acknowledged by the issuance of the Commission’s official receipt.

(4) The Application fee paid under these Regulations shall be non-refundable.

4 Fees Payable on Grant of Licence

(1) Upon approval by the Commission of an application for a licence, the Commission shall inform the applicant of such approval and be informed of the licence fee required to be paid by the applicant for the grant of a licence.

(2) The licence fee to be paid shall be as specified in the Schedule.

(3) Where the licence fee is not paid within the specified in the terms and conditions of the Licence, a surcharge will be payable on the amount due at the rate of 1% per week up to a maximum period of 12 (twelve) weeks after which period the grant of a licence shall lapse.

5 Amendment/Renewal Fees

(1) Every application for the Amendment or Renewal of an existing Licence by a licensee shall be accompanied by the Amendment /Renewal Fee as specified in the Schedule.

(2) The Amendment/Renewal Fee shall be non-refundable.

CHAPTER III

OPERATING FEES

6 Annual Operating Fees

(1) Licensees shall pay Annual Operating Fees.

(2) The Annual Operating Fee Payable shall be charged in accordance with the rates specified in the Schedule.

(3) Where the Operating Fee is not paid within the time specified in the terms and conditions of the licence, surcharge shall be payable on the amount due at the rate of 1% per week up to a maximum period of 12 (twelve) weeks after which period the Commission shall apply appropriate penalties in accordance with the terms and conditions of the licence.

CHAPTER IV

MISCELLANEOUS

7 Amendment

(1) The Commission may from time to time amend or repeal the provisions of these Regulations.

(2) The Commission may from time to time, by Order, add, amend, alter or vary the amounts of Fees payable as provided in Schedule

(8) Inherent Powers of the Commission

(1) Nothing in these Regulations shall be deemed to limit or otherwise affect the power of the Commission to make such orders as may be in public interest .

(2) Nothing in these Regulations shall bar the Commission from adopting in conformity with provisions of the Act, a procedure which is at variance with any of the provisions of these Regulations, if the Commission, in view of the special circumstances of a matter or a class of matters and for reasons to be recorded in writing, deems it just or expedient for deciding such matter or class of matters.

THE COMMON SEAL OF

NIGERIAN ELECTRICITY REGULATORY COMMISSION

was affixed pursuant to the ORDER OF THE COMMISSION

on 14^th February, 2006

DR. RANSOME OWAN

CHAIRMAN/CEO

SCHEDULE OF LICENCES & FEES

A. Grid-Connected Operations:

S/N Licence Category Validity Application Licence Licence Annual

Period (year) Fees Fees Amendment Operating Application Fees Levies.

1. Generation*: 10

a. Above1MW N50,000.00 US$2,500.00 N50,000.00 1.5% of

10MW Licensees

Charges/kWh

b. Above 10MW

100MW N100,000.00 US$25,000.00 N100,000.00

c. Above 101MW

250MW N200,000.00 US$50,000.00 N200,000.00

d. Above 251MW

500MW N300,000.00 US$75,000.00 N300,000.00

e. Above 501MW

1000MW N400,000.00 US$100,000.00 N400,000.00

f. Above 1000MW N500,000.00 US$200,000.00 N500,000.00

2. Transmission** 10 N1,000,000.00 US$250,000.00 N1,000,000.00

3. System Operations** 10 N1,000,000.00 US$250,000.00 N1,000,000.00

4. Distribution 10 N1,000,000.00 US$50,000.00 N1,000,000.00

* Generation capacity is the nearest integral value.

**The Licence and fees for Transmission and System Operations apply to PHCN or its Successor Companies only.

B. Off-Grid Operations:

S/N Generator Validity Application Licence Licence Annual

Capacity (MW) Period (year) Fees (N) Fees ($) Amendment Operating Application Fees Levies.

($)

1. Above 1 10 10,000.00 1,000.00 500.00

2. 11 20 10,000.00 2,000.00 1,000.00

3. 21 30 10,000.00 2,500.00 1,250.00

4. 31 40 1 10,000.00 3,000.00 1,500.00 None

5. 41 50 10,000.00 3,500.00 1,750.00

6. 51 100 20,000.00 5,000.00 2,500.00

7. Above 100 50,000.00 6,000.00 3,000.00

8. Distribution 10 100,000.00 10,000.00 5,000.00 1.5%

Charges/kWh

Initial Generator Licence is unit and location specific
Any material change in the generator unit or location shall require an amendment to the Licence
A Distribution Licence is location specific
Validity period cannot be pro-rated for less than a year
Generator capacity is the nearest integral value.

C. Electrical Installation/Wiring:

S/N Licence Category Validity Application Licence Licence Annual

Period (year) Fees Fees Amendment Operating Application Fees Levies.

1. Category A

(3301/132kv) 5 N100,000.00 N5,000.000..00 N100,000.00 N500,000.00

2. Category B

(33/11kv) 5 N50,000.00 N500,000.00 N50,000.00 N50,000.00

3. Category C

(450v) 5 N2,000.00 N10,000.00 - -