Section 6: Legal validity of pre-privatisation and post-privatisation.

Without prejudice to the transitional and saving provisions contained in sections 230 and 231 of this Act, this Act recognises the legal validity of the evolution and reform of the NESI from its vertically integrated service provision arrangement under the defunct National Electric Power Authority (in this Act referred to as the "Authority") to the privatised phase implemented under the Repealed Act -(a) physical unbundling of the Authority into 18 companies and transfer of the assets, liabilities and staff of the Authority to the Power Holding Company of Nigeria, the initial holding company (in this Act referred to as the "PHCN");
(b) licensing of the 18 new successor companies that emerged from the PHCN as distinct generation, transmission and distribution companies as contained in the list set out in Part I of the First Schedule to this Act; [First Schedule]
(c) introduction of the National Integrated Power Projects (NIPP) to address infrastructural deficit and fast-track the development of the NESI and licensing of Independent Power Producers (IPPs) contained in the list set out respectively in Parts II and III, First Schedule to this Act; [First Schedule]
(d) establishment of the Nigerian Electricity Liability Management Company LTD/GTE(NELMCO) to assume responsibility for all the PHCN liabilities and non-core assets of PHCN and successor companies and other such assets or receivables within the NESI leading to privatisation of successor companies and any other extended mandate as may be approved by the National Council on Privatisation regarding the management of tariff deficits accumulated during the post-privatisation stage by successor companies;
(e) incorporation of the National Power Training Institute of Nigeria (NAPTIN) for the primary purpose of manpower training and coordination of manpower training activities in the NESI;
(f) establishment of the Nigerian Electricity Bulk Trading Plc (NBET), a company incorporated under the Companies and Allied Matters Act as a trading licensee holding a bulk purchase and resale license for bulk procurement and bulk sale of electricity and ancillary services; and
(g) introduction of a rule and contract-based electricity market together with the interim, pre-transitional and transitional rules introduced to regulate the interim, pre-transitional and transitional stages of the market. [Act No. 3, 2020]