The Nigerian Electricity Regulatory Commission (NERC) has established three working groups for the implementation of the new Electricity Act 2023.
President Bola Tinubu, who assumed office in May 2023, signed the new Act in June 2023, removing electricity from the exclusive list and giving states the power to generate and regulate power in their regions.
At a stakeholders meeting on Monday, in Abuja, Sanusi Garba, the Chairman of NERC, inaugurated the Legal and Regulatory Working Group, Engineering and Technical Working Group, and the Commercial and Transaction Group.
Garba stated that the Commission will collaborate with states, as it takes process for states to start regulating electricity.
He added: “The focus in the implementation of the Electricity Act seems to be about states taking over the responsibilities of making electricity laws for their area.
“Arising from the workshop we organised in Lagos, it takes process for states to start regulating electricity in their areas and NERC is collaborating with them on this.
“So, NERC has created three working groups that will focus on potential areas in the Electricity Act that provides that states take over electricity regulation in their jurisdictions. We have the legal and regulatory working group, engineering and technical working group, and the commercial and transaction group.”
According to the NERC Chair, the three working groups and the NERC would be discussing key areas in the next three months.
Speaking at the event, the NERC Commissioner, Planning, Research and Strategy, Dr. Yusuf Ali, said one of the many facets in the Electricity Act, was “the transitioning of the Nigerian power sector to a two-tier regulatory regime, where we have federal and state regulation.”
In his contribution, the NERC Vice Chairman, Musiliu Oseni, urged members of the working group to give their best so that the report that will be done will be robust enough.
Oseni stated: “We all want a good electricity sector; a working electricity market and we want the best for our country. I believe we will try as much as possible to put that in mind as we continue with this exercise.”
Under the new Electricity Act, investors may construct, own, or operate an undertaking for the generation of electricity not exceeding one megawatt in aggregate at a site, or an undertaking for the distribution of electricity with a capacity not exceeding 100 kilowatts in aggregate at a site, or such other capacity as the commission may determine from time to time, without licence.
The new Act also allows states to regulate their electricity markets by issuing licences to private investors who can operate mini-grids and power plants within the state.
However, the Act precludes interstate and transnational electricity distribution; and until a state has passed its electricity market laws, NERC will continue to regulate electricity businesses in such states.