NERC to meet Stakeholders in July to deliberate on Implementation of 2023 Electricity Act

The Nigerian Electricity Regulatory Commission, (NERC), has concluded plans to meet with all stakeholders in July 2023 to discuss strategies and methods for the effective implementation of the 2023 Electricity Act.

 The Commission  which made this known in a statement dated June 19, 2023 also highlighted the Commission’s readiness to engage with other stakeholders and exchange ideas, with the aim of establishing a sustainable electricity industry in the country.

The NERC’s statement read partly:

“In pursuit of bringing to effect the laudable provisions of the electricity industry laws and to facilitate a smooth transition, the Commission has scheduled a stakeholder’s workshop to hold in July, with key stakeholders including market participants, state government representatives, and other key interested parties.

“The workshop shall serve as a platform for open dialogue and collaboration, enabling participants to discuss and commence the development of a robust roadmap for a successful implementation of multi-tier electricity markets. This proactive approach shall allow the Commission and other stakeholders to gather valuable insights, address concerns, and ensure the smooth implementation of the provisions of the new legislation.”

The Commission in the statement, expressed appreciation to President Bola Ahmed Tinubu for successfully enacting the Electricity Act.

NERC also underscored the importance of granting legislative autonomy to the federating states concerning electricity generation, transmission, and distribution within their respective jurisdictions.

This development is perceived as a major advancement in the Nigerian Electricity Supply Industry, (NESI).

NERC emphasized that the constitutional amendment and the passage of the Electricity Act 2023 represent a significant shift in the Nigerian power sector.

It is also projected that this new legislation will contribute to a sustainable improvement in both the NESI and the overall economy of the country.

NERC highlighted that the regulation of public utilities at the sub-national level, which has been introduced through the recent constitutional amendment and the 2023 Electricity Act, is a new concept in Nigeria.

This approach, however, has already been effectively implemented in other countries such as India, Australia, Canada, and the United States of America, where clear distinctions are made between federal and state electricity regulation and markets.

The Electricity Regulatory body acknowledges the significance of drawing from the experiences and lessons of these jurisdictions to effectively address potential challenges and optimize the advantages presented by the changing power sector landscape.

 So, in the short and medium term, NERC plans to:

The Commission understands that to ensure an orderly and successful transition, there is an imperative for the collaboration of all stakeholders and the fostering of a harmonious working relationship.

It is equally important, according to NERC,  to further clarify and delineate roles and responsibilities between the federal and state regulatory jurisdictions. This is to avoid conflicts, overlaps, and regulatory uncertainty that may hinder the smooth functioning of the power sector with a consequential adverse impact on investors’ confidence.

The Commission further highlighted the fact that an orderly transition process is required to minimize disruption and shock to market participants and consumers. So, stability and clarity are vital for the confidence of existing players and the encouragement of new investors in the evolving market.