Constitutional amendment/electricity act 2023: NERC sets to hold stakeholders workshop in July 

Oredola Adeola

The Nigerian Electricity Regulatory Commission (NERC) has scheduled a workshop in July, with key stakeholders including market participants, state government representatives, and other key interested parties.

The Commission made this known in a statement released on Tuesday and obtained by EnergyDay, in response to President Bola Tinubu’s assent to the new Electricity Act 2023 (“Act”) which repealed the Electric Power Sector Reform Act,(EPSRA) 2005, and decentralised the regulatory authority of the Commission.

EnergyDay gathered that the new act signed by President Tinubu, was aimed at consolidating all legislations in the power sector into one electricity statute and established to improve Nigeria’s power generation capacity through the right given to the states to constitute their respective electricity regulations to make law as stakeholders in the Nigerian Electricity Supply Industry (NESI).

 

NERC in the statement on Tuesday, therefore, noted that the workshop would 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.

According to the NERC, the stakeholders’ meeting which will serve as a proactive approach to the new Act.

It added that the meeting  will allow the Commission and other stakeholders to gather valuable insights, address concerns, and ensure the smooth implementation of the provisions of the new legislation.

NERC said, “The constitutional amendment and the passage of the Electricity Act 2023 signify a paradigm shift in the Nigerian power sector. It is envisaged that this new legislation will lead to a sustainable improvement in the Nigerian Electricity Supply Industry and the overall economic growth of the country.

The Commission stated that  it has initiated key strategies aimed at maximizing the potential benefits of the provisions of the legislation, including collaboration with all states of the Federation in the short and medium term.

It further stated that collaboration will help fine-tune the plan by the subnational to establish public utility commissions that will be charged with the responsibility of regulating the electricity market within their respective jurisdictions.

It emphasised that the collaboration will help the NERC and sub-national utility companies to align efforts and resources towards the shared objective of providing efficient service to all electricity customers.

NERC also stated that as part of efforts 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 and the subnational authorities will need to provide further clarity and delineation of roles and responsibilities between the federal and state regulatory jurisdictions.

NERC while restating its commitment to an orderly transition process between the Commission and the state government, it disclosed that orderliness will minimize disruption and shock to market participants and consumers.

It said,” Stability and clarity are vital for the confidence of existing players and the encouragement of new investors in the evolving market.”

The Commission therefore stated that it has recognised the importance of working with all state governments on an orderly transition having regard to legacy reform issues and the novation of existing contractual commitment.