NERC Backs State Governments for The Implementation of New Electricity Act 2023
Nigerian Electricity Regulatory Commission (NERC) has set up three groups to work with the state governments for the implementation of the new electricity act 2023.
The act assented to by President Tinubu in June 2023, removed electricity from the exclusive list of the Nigerian constitution.
The Commission Chairman, Sanusi Garba listed the three working groups as legal regulation, engineering/technical and commercial/transaction.
He said the three working groups for the next three months and the commission would be discussing key areas in the act for its implementation.
According to him, the new act empowers state governments to regulate electricity market by licensing investors to operate mini-power grids or power plants within the state.
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The new act allows investors to construct, own and operate an undertaking for the generation of powers not exceeding one megawatts of electricity at a site.
The investors also are allowed to distribute not more than 100 Kilowatts at a site.
Similarly, the NERC Vice Chairman, Musiliu Oseni, admonished members of the working group to give their best so that the report that will be done will be robust enough.
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, Oseni had stated.
One of the benefits of the new Electricity Act includes the fact that 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 a licence.
States can regulate their electricity markets by issuing licences to private investors who can operate mini-grids and power plants within the state.
